Lawmakers like Senator Elizabeth Warren, a Democrat of Massachusetts, have advocated the idea of taxing a person’s net worth over $ 50 million at a two percent tax – including the value of stocks, houses, boats, and everything else a person has owns after all debts have been deducted. In an interview on Tuesday, Ms. Warren described the tax revelations as “deeply shocking” and said it reinforces the fact that lawmakers should think of wealth over income when writing tax policy.
“A 2 or 10 percent increase in income tax is not going to make any real difference to these multibillionaires,” Ms. Warren said. “The real action in America is in wealth, not income.”
Although she praised some of Mr. Biden’s proposals, such as increasing taxes on investment income and targeting “real” corporate profits, Ms. Warren said she would like a more ambitious White House.
“I want the Biden government to enforce property taxes,” said Ms. Warren.
Mr Biden and his advisors found the idea of a wealth tax impracticable. Instead, the president wants an additional $ 80 billion over 10 years to bolster the Internal Revenue Service so it is better equipped to prosecute tax fraud. And he has proposed doubling the tax on capital gains – the proceeds from the sale of an asset like a stock or a boat – for anyone who makes more than $ 1 million.
“We know more needs to be done to ensure that companies with the highest incomes pay more of their fair share,” said Ms. Psaki.
At a New York Times DealBook event in February Treasury Secretary Janet L. Yellen said a wealth tax “is something that has very difficult implementation problems.” She suggested that other tax changes that would increase taxes on wealth carried over upon death could have a similar effect. In March, however, Ms. Yellen suggested being open to a wealth tax.
“Well, we haven’t decided that yet,” Ms. Yellen told ABC News before pointing out other tax ideas that would affect the rich as well.
