What You Need to Know
- The Ultra-Millionaire Tax Act, Restoring the IRS Act and Real Corporate Profits Tax Act would help fund Biden's American Families Plan, Warren argues.
- Warren has formally introduced all three proposals in the 117th Congress.
- Critics of the wealth tax say it would be unworkable due to the difficulty of valuing some types of assets.
Sen. Elizabeth Warren, D-Mass., released a new report Thursday examining how three of her recent legislative proposals — including a wealth tax — will help pay for President Joe Biden’s $3.5 trillion tax and economic package that’s currently being debated in the House and Senate.
The new staff report, “The Big Escape: How the Ultra-Wealthy Avoid Paying Taxes and How to Fix It,” analyzes the effects of Warren’s legislation on nearly two dozen of the wealthiest Americans and richest corporations.
“It finds that simply by making these individuals and corporations pay their fair share, Congress could fund programs for healthcare, housing, childcare, and more in the infrastructure package presently being negotiated by House and Senate leaders,” the report states.
Congress, the report maintains, “has a historic opportunity to enact” all three of Warren’s proposals.
“The House and Senate are now considering vital legislation to invest $3.5 trillion in American workers and families in the form of childcare, Medicare and Medicaid, and climate change programs,” the report states, adding that Warren’s plans “would raise trillions of dollars to pay for critical investments while fixing a tax system riddled with loopholes and rigged for the rich.”
Warren has championed a wealth tax for some of the richest Americans, a tax on the profits reported to shareholders by the country’s most profitable companies, and expanding IRS enforcement to stop wealthy tax cheats and close the tax gap, the report states.
This year, Warren formally introduced all three proposals in the 117th Congress.
The Ultra-Millionaire Tax Act, S. 510, would create a 2% annual tax on wealth between $50 million and $1 billion and a 3% annual tax for wealth above $1 billion.