Sanders Unveils His “Wealth Tax”

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Sanders Unveils His “Wealth Tax”

Senator Bernie Sanders has few good things to say about Americans who earn high incomes. In his run for the Democratic nomination, he has made targeting the wealthy a centerpiece of his campaign. Now he has a tax plan that takes aggressive aim at this group.

 

Today Sen. Sanders released a plan that would impose a wealth tax on higher-income households. This is how the new tax surcharge would escalate:

  • 1% tax on married couple wealth above $32 million and single individual wealth above $16 million
  • 2% tax on married couple wealth above $50 million and single individual wealth above $25 million
  • 3% tax on married couple wealth above $250 million and single individual wealth above $125 million
  • 4% tax on married couple wealth above $500 million and single individual wealth above $250 million
  • 5% tax on married couple wealth above $1 billion and single individual wealth above $500 million
  • 6% tax on married couple wealth above $2.5 billion and single individual wealth above $1.25 billion
  • 7% tax on married couple wealth above $5 billion and single individual wealth above $2.5 billion
  • 8% tax on married couple wealth above $10 billion and single individual wealth above $5 billion

 

According to the Sanders campaign, this tax plan would cut the wealth of American billionaires in half. The campaign also says it would produce $4.35 trillion over 10 years. That new revenue would help pay for a variety of costly plans that Sanders has outlined on the campaign trail, such as student loan forgiveness, Medicare-for-all, and universal child care.

 

Proponents of the Sanders plan justify it as a way to equalize what they say is an extreme gap between wealthy Americans and everyone else. They argue that the government has a role to take some of this wealth and use it for social programs that benefit the public. Opponents counter that this plan would discourage individuals from investing and working, leading to fewer jobs created and lower economic growth. They also note that wealthy Americans can take steps to avoid the tax, so it will likely produce far less income than the Sanders campaign predicts.

 

Among the individuals running for the Democratic nomination, Elizabeth Warren has also proposed a wealth tax. The Sanders plan is more aggressive than the tax program outlined by Warren.

 

Do you support a special tax on individuals who earn more than $16 million?

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