Senator Elizabeth Warren’s proposed wealth tax would sting one hundred of the wealthiest Americans by $78bn, according to Bloomberg.
According to analysis by the University of California at Berkeley, 100,000 families and roughly 1,000 billionaires would end up paying the proposed tax. It is estimated that the tax would raise about $3 trillion over a decade.
Amazon’s Jeff Bezos would pay billions more in US Federal taxes under the proposal.
The Bloomberg Billionaires Index has revealed that the richest 100 Americans added $598bn to their wealth in 2020. The tax would capture 13 per cent of that increase.
The Bill resembles a plan Elizabeth Warren set out during her unsuccessful campaign to seek the Democratic nomination for President.
It has been dubbed the Ultra-Millionaire Tax Act and was introduced by Warren alongside Representative Pramila Jayapal. It has been estimated to create an annual tax of two per cent on the net worth of households and trusts between $50m and $1 bn and a tax of three percent on net worth above $1 bn.
If the bill became law – and that’s a big ‘if’ – Bloomberg has calculated:
Jeff Bezos, the world’s richest person, would face an extra tax charge of at least $5.4bn this year, while Elon Musk would pay $5.2bn.
At the same time, Bill Gates would shell out an additional $4bn, while Facebook founder Mark Zuckerberg would loose $2.9bn.