A group of Democrat Senators and Representatives has joined to advocate for new taxes targeting wealthy individuals. The new legislation, designed to punish affluent citizens, aims to tax individuals who are worth more than $50.
Senators Elizabeth Warren, Representatives Pramila Jayapal and Brendan F. Boyle, and 45+ Democratic lawmakers have reintroduced the so-called, Ultra-Millionaire Tax Act.
Senator Warren, one of the most progressive members of the Senate, said the bill was about “basic fairness” as she seeks to provide free college, child care, and Medicare expansion.
Representative Jayapal, another progressive politician, says the Act is a “major step toward making sure the wealthy finally pay their fair share.”
The bill would create a 2% annual tax on the net worth of households valued at over $50 million and an additional 1% annual surtax on the net worth of households and trusts above $1 billion.
The legislation includes anti-evasion and avoidance rules, as well as $100 million in new funding for the IRS and a 40% “exit tax” on the wealth for those who renounce their citizenship to avoid the tax.
While the legislation has little chance of advancing in Congress as it is controlled by Republicans, the punitive measure will see individuals who already pay the bulk of all taxes foot more of the bill. At the same time, it does not address the greater challenge of excessive government spending, which includes much waste and fraud.
The top 1% of all earners in the US already pay roughly 40% of all federal individual income taxes. The top 10% of earners pay a whopping 72% of all federal taxes.
As the government has already proven it cannot operate within its means and it is prone to spending money on spurious programs, eventually policymakers will come for the middle class to pay for government programs.
By including a regulatory “wall” for people who want to exit the country to avoid being punished for being productive, these legislators are taking a page out of the former Eastern Bloc countries under Soviet control.
