A group of Democratic Senators and Representatives have come together to advocate for new taxes targeting wealthy individuals. Designed to punish wealthy citizens, the new law aims to tax individuals worth more than $50.
senators Elizabeth WarrenRepresentatives Pramila Jayapal And Brendan F. Boyleand more than 45 Democratic lawmakers have so-called reintroduction: Ultra Millionaire Tax Act.
Senator Warren, one of the Senate’s most progressive members, said the bill is about “fundamental fairness” as it aims to provide free college, child care and expanded Medicare.
Rep. Jayapal, another progressive politician, said the Act was a “It’s a big step towards ensuring the rich finally pay their fair share.”
The bill would impose a 2 percent annual tax on the net worth of households worth more than $50 million and an additional 1 percent annual tax on the net worth of households and foundations worth more than $1 billion.
The legislation includes anti-fraud and evasion rules, as well as $100 million in new funding for the IRS and a 40% “exit tax” on wealth for those who give up their citizenship to avoid taxes.
While the Republican-controlled legislation has little chance of advancing in Congress, the punitive measure would result in people who already pay the bulk of all taxes picking up a larger share of the bill. It also doesn’t address the larger problem of excessive government spending, which involves a lot of waste and fraud.
The top 1% of U.S. earners currently pay roughly 40% of all federal individual income taxes. The richest 10 percent of earners pay 72 percent of all federal taxes.
Since the government has already proven that it cannot operate within its means and is prone to spending money on fake programs, policymakers will eventually come around to having the middle class pay for government programs.
By adding a regulatory “wall” for those who want to leave the country to avoid being punished for being productive, these lawmakers are taking a page from former Eastern Bloc countries under Soviet control.
