Bloomberg pitches raising $5 trillion by taxing the wealthy
Michael Bloomberg proposed generating roughly $5 trillion for education, infrastructure and climate change by hiking the tax rates of top earners and corporations in a plan released Saturday.
Why it matters: That $5 trillion goal beats former Vice President Joe Biden's plan to raise $3.2 trillion over a decade by increasing taxes, Sen. Elizabeth Warren's "ultra-millionaire tax" to bring in nearly $4 trillion, and just surpasses Sen. Bernie Sanders' plan to raise roughly $4.35 trillion by taxing the wealthy.
- Yes, but: Warren has multiple tax plans — one for corporations and trade organizations that spend more than $500,000 per year lobbying the government, and another to tax companies with over $100 million in profits.
- The candidates' tax plans are also structured differently, with unique income limits and timeframes — Warren's is a 10-year plan and Sanders' is a 15-year plan.
Details: Bloomberg's proposal adds a 5% surtax on incomes above $5 million annually, while Warren takes aim at households with more than $50 million in assets, with a 2% charge.
- Bloomberg's idea also calls for enforcing the IRS to "collect many hundreds of billions in taxes owed but never paid," but does not elaborate.
- The corporate tax rate would rise from 21% to 28% under Bloomberg's plan.