Senator Elizabeth Warren defended her latest wealth tax proposal on Tuesday, telling CNBC that she believes most Americans will not mind being rich enough to pay it.
The Massachusetts Democrat made the comments in an interview on “Squawk Box,” a day after he proposed an annual tax of 2%, or 2 cents, on every dollar of people’s assets worth more than $ 50 million. Individuals with assets in excess of $ 1 billion would have to pay an annual tax of 3% or 3 cents on every dollar above that threshold.
Warren campaigned for a similar wealth tax idea during her unsuccessful campaign for the 2020 Democratic President nomination.
Other progressives, including Vermont Senator Bernie Sanders, signed Warren’s plan as co-sponsors. During his failed presidential campaign, Sanders also advocated a wealth tax.
“It is now set up to say that we are not going to collect tax on assets worth less than $ 50,000, so this is not pushy. Find out what their 4-year-old is. Old cars are worth it, “Warren said on CNBC.
“But it says that if you have a fortune over $ 50 million, you pay for it. And if your fortune is less than $ 50 million, you don’t. Good for you anyway,” she added. . “I think most people would rather be rich and pay 2 cents. This isn’t very fancy. It’s really a tax on fortunes of over $ 50 million.”
The idea of a US wealth tax has received a string of criticism, including from Treasury Secretary Janet Yellen, who said it has “very difficult implementation problems.”
Warren said the coronavirus crisis has exacerbated inequality in the U.S. and has shown that there is a greater need for a wealth tax to generate more federal revenue, which the proposal says should be invested in early childhood education and infrastructure programs.
The senator said her plan would bring in $ 3.75 trillion over the next 10 years.
“We understand the direction we are heading. This pandemic has created more billionaires. The people at the top are not barely hanging by their fingernails,” said Warren.