Bernie Sanders Looks to Outflank Elizabeth Warren With Wealth Tax Plan
Elizabeth Warren and Bernie Sanders are racing to capture the votes of the left heading into the 2020 election season, and Sanders' latest proposal is clear evidence of that. Bernie Sanders - who is trailing Elizabeth Warren and Joe Biden in most polls for the Democratic nomination - raised plenty of eyebrows this week when he released his aggressive wealth tax proposal.
The goal of the proposal? To cut the wealth of billionaires by 50% within 15 years. Sanders argues that too much of the nation's wealth is in the hands of the few - in this case, 180,000 households that control the majority of the nation's wealth.
Bernie Sanders' proposal? An annual wealth tax of up to 8% that would, in his words, raise $4.35 trillion in tax revenue over the next decade. This money would go towards funding Sanders' affordable housing, universal childcare and Medicare for All plans.
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Here is how it would work:
According to Sanders, this wealth tax would only apply to those households with a net worth of at least $32 million.
This wealth tax would be a progressive one, starting at 1% (per year) and topping out at 8%.
For those households with a net worth of between $32 million and $50 million, an annual wealth tax of 1% would have to be paid to the federal government (1% of their total net worth).
For those households with a net worth of between $50 million and $250 million, an annual wealth tax of 2% would apply.
For those households with a net worth of between $250 million and $500 million, an annual wealth tax of 3% would apply.
For those households with a net worth of between $500 million and $1 billion, an annual wealth tax of 4% would apply.
For those households with a net worth of between $1 billion and $2.5 billion, an annual wealth tax of 5% would apply.
For those households with a net worth of between $2.5 billion to $5 billion, an annual wealth tax of 6% would apply.
For those households with a net worth of between $5 billion and $10 billion, an annual wealth tax of 7% would apply.
For those households with a net worth of between $10 billion and above, an annual wealth tax of 8% would apply.
So, if you have a net worth of $10 billion, you'd be cutting the US government a cheque for $800 million each and every year.
*Note: The brackets would be halved for singles
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In order to enforce this wealth tax, Sanders is proposing a number of things, including:
1. More frequent Treasury assessments of the wealth of rich people
2. Significant increase in audits (100% audit rate for billionaires)
3. Creation of national wealth registry and increased reporting requirements for third parties
4. Severe exit tax for people looking to expatriate to avoid the tax
5. Enhanced international tax enforcement and strengthening of anti-money laundering laws
If you are thinking about moving to another country to avoid paying the tax, Sanders would have a surprise for you - an exit tax of up to 60% on your total net worth.
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This is the Bernie Sanders wealth tax proposal that he hopes will help vault him to the White House in 2020.
Source: BernieSanders.com - Tax on Extreme Wealth
Filed under: General Knowledge
