Wealth tax proposal to get momentum during 2020 presidential election

If the proposal is successfully passed through the House any time in future, the richest Americans would be burdened with wealth tax. Sen. Elizabeth Warren, D-Mass., is seeking for such to people having at least $50 million in assets.

Warren is in the race of 2020 presidential election. She announced her bid lately and is talking about structural change and economic fairness. The annual wealth tax would be a brand new feature in the United States tax system and she calls it as the “Ultra-Millionaire Tax.”

Her tweet on Thursday read, “I’m calling it the Ultra-Millionaire Tax & it applies to that tippy top 0.1% – those with a net worth of over $50M.”

Economist Emmanuel Saez, who advises her, said the wealth tax would raise $2.75 trillion over the period of 10 years by making it applicable to less than 0.1 percent of the US households.

Some Democratic lawmakers too have plans of raising taxes to the wealthiest Americans and the development is being noticed by affluent investors who are meeting at the World Economic Forum in Davos, Switzerland, this week.

Global chief investment officer of $265 billion Guggenheim Partners, Scott Minerd, said the brand new tax system is to gain momentum during the presidential election.

A report by the Institute on Taxation and Economic Policy recently revealed one percent of Americans having highest incomes get 20 percent of the total income in the country.

In 1999 Trump too had argued for a similar measure to tax the rich while he was exploring a presidential bid as a Reform Party nominee.

Paul Linus