Warren Pitches Wealth Tax on ‘Ultra-Millionaires’ and Trusts

Progressive Sen. Elizabeth Warren (D-Mass.) brought back her legislation to tax the wealth of the richest taxpayers, what she dubs “ultra-millionaires,” and is including new stronger rules on trusts.

The bill faces little chance of passage in a divided Congress with GOP in control of the lower chamber. Still, it comes as the presidential campaign begins to heat up, with President Joe Biden’s administration emphasizing boosted enforcement on tax avoidance by the wealthiest and proposing his own billionaire tax.

The legislation would implement a 2% annual tax on the net worth of households and trusts between $50 million and $1 billion, a 1% annual surtax on the net worth of households and trusts above $1 billion, and anti-tax evasion and avoidance measures on wealth held in trusts, according to the release.

It’s co-sponsored by Reps. Pramila Jayapal (D-Wash.) and Brendan Boyle (D-Pa.) in the House.

“All my bill is asking is that when you make it big, bigger than $50 million dollars, then on that next dollar, you pitch in two cents, so everyone else can have a chance,” Warren said.

Warren previously has introduced the legislation in other Congresses, and touted the idea during her 2020 presidential campaign. Analysts have estimated the measure would bring in around $3 trillion in revenue over a decade. Some legal scholars have questioned the constitutionality of a wealth tax.