Legislation to tax millionaires re-introduced

U.S. Sen. Elizabeth Warren (D-MA), joined U.S. Reps. Pramila Jayapla (D-WA) and Brendan Boyle (D-PA) in re-introducing legislation that would tax the ultra-millionaire households.

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The legislation, the Ultra-Millionaire Tax Act, would require the top 0.05 percent of American households to pay 2 cents for every dollar of wealth over $50 million. The Congress members said the bill would bring in $3 trillion over the next 10 years. The new version of the legislation includes stronger rules on trusts, the law makers said, a common tax avoidance vehicle that costs the federal government between $5 and $7 billion each year.

President Joe Biden has promised that his administration would crack down on billionaires not paying their fair share of taxes.

“As President Biden says: no one thinks it’s fair that Jeff Bezos gets enough tax loopholes that he pays at a lower rate than a public school teacher,” Warren said. “All my bill is asking is that when you make it big, bigger than $50 million dollars, then on that next dollar, you pitch in two cents, so everyone else can have a chance.”

The legislation would place a 2 percent annual tax on the net worth of households and trusts between $50 million and $ billion; place a 1 percent annual surtax on the net worth of households and trust above $1 billion and put in place strong anti-tax evasion and avoidance measures on wealth held in trusts.

The legislation is co-sponsored by Sens. Bernie Sanders (I-VT), Sheldon Whitehouse (D-RI), Jeff Merkley (D-OR), Brian Schatz (D-HI), Edward J. Markey (D-MA), Mazie Hirono (D-HI), and Peter Welch (D-VT