Senator Elizabeth Warren is pushing a so-called “wealth tax.” It would mean a 3% annual tax on wealth above $1 billion and a 2% annual tax on those who have wealth between $50 million to $1 billion. Warren explains how it would work above. CNBC writes:

The Ultra-Millionaire Tax Act aims at reining in a widening U.S. wealth gap, which has been exacerbated by the Covid pandemic.

“The ultra-rich and powerful have rigged the rules in their favor so much that the top 0.1% pay a lower effective tax rate than the bottom 99%, and billionaire wealth is 40% higher than before the Covid crisis began,” Warren said Monday in a statement.

This isn’t a new proposal from Warren. Economists have estimated the tax would generate $2,75 trillion over 10 years and affect about 75,000 Americans.  CBS News adds, “Warren has been a vocal supporter of a wealth tax for some time — making it one of her signature policy platforms on the campaign trail when she ran for president in 2020. ‘Two Cents’ — referring to the 2-cent tax an ultrawealthy taxpayer would owe on each dollar — even adorned her campaign merchandise and was chanted at rallies. The bill is now one of her first moves as a new member of the Senate Finance Committee.”

Bloomberg reports, “While President Joe Biden campaigned on raising the income tax rate for top earners, he hasn’t endorsed a tax on wealth. White House press secretary Jen Psaki said Biden will discuss making sure the wealthy ‘pay their fair share’ as part of the next package of legislation.”