Wealth Tax Proposed By Sen. Elizabeth Warren.pdf

Senator Elizabeth Warren, Congresswoman Pramila Jayapal, and Congressman Brendan Boyle propose the Ultra-Millionaire Tax Act of 2021 to address the extreme concentration of wealth in the US. The richest 0.1% of Americans hold nearly as much wealth as the bottom 90% of families combined, with the 400 richest Americans owning more wealth than all Black households plus a quarter of Latino households combined. The tax code is designed to focus on incomes, largely missing the massive amount of wealth accumulated by the ultra-rich, resulting in the top 0.1% owing just 3.2% of their wealth in federal, state, and local taxes in 2019, compared to 7.2% for the bottom 99%.

The Ultra-Millionaire Tax Act would impose a 2% annual tax on net worth of households and trusts between $50 million and $1 billion, and a 3% overall tax on net worth above $1 billion, bringing in at least $3 trillion in revenue over 10 years without raising taxes on 99.95% of American households. The bill includes robust anti-evasion and avoidance measures, such as a $100 billion investment to rebuild and strengthen the IRS, a 30% minimum audit rate, and a 40% "exit tax" on the net worth above $50 million of any U.S. citizen who renounces their citizenship. The act has been endorsed by various organizations, including the AFL-CIO, AFSCME, and the Sunrise Movement.