Mar 6, 2019

Elizabeth Warren: What to know about the 2020 candidate's wealth tax proposal

Nathan Klima for The Boston Globe via Getty Images

Sen. Elizabeth Warren (D-Mass.) opened her 2020 campaign with a wealth tax policy proposal that was inspired by University of California-Berkeley economists Emmanuel Saez and Gabriel Zucman. The plan would tax the wealthiest Americans on their assets.

Key details
  • Annual 2% tax on assets above a taxpayer's first $50 million, and 3% on assets that exceed $1 billion.
  • The wealth tax would raise an estimated $2.75 trillion over 10 years from 75,000 families.
  • Warren is branding it as the "Ultra-Millionaire Tax."
  • To fight tax evasion, the policy would bolster the IRS budget, install a minimum audit rate for the very rich and add a 40% "exit tax" on the very rich who try to give up U.S. citizenship.
  • Warren has also proposed a universal child care program that would use revenues from the wealth tax to provide public and family-run centers to guarantee care from birth until schooling age.
Arguments in favor of Elizabeth Warren's wealth tax
  • Addresses glaring wealth inequality.
  • Gets to the heart of people's wealth: Assets instead of income.
  • Added source of government revenue for child care proposal and other programs.
  • Combats tax evasion.
Arguments opposed to Elizabeth Warren's wealth tax

Go deeper: Everything you need to know about Elizabeth Warren

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