Tax Plan
Massachusetts Senator Warren has proposed that the wealthiest 75,000 households pay an annual tax of 2% on each dollar of their net worth above $50 million. It would rise to 3% on every dollar above $1 billion. She has said this would combat rising inequality.
Critics have charged that the tax would be hard to administer and easy to avoid. They’ve also questioned its constitutionality.
Zucman and Saez used Forbes magazine estimates of individuals’ 2018 wealth as a baseline for comparison in their analysis on the impact of the Warren tax. The magazine has tracked the net worth of the rich since 1982.
Some of the wealthiest Americans, including Buffett and Gates, have said people like themselves should be required to pay more in taxes.
Billionaire investor George Soros, heiress Abigail Disney and 17 other wealthy individuals published an open letter in June in support of Warren’s wealth tax and said lawmakers have a moral responsibility to levy higher taxes on the rich.
Both Saez and Zucman have have conducted research with Thomas Piketty, whose best-selling book put a spotlight on income and wealth disparities.
This article was provided by Bloomberg News.