The Democratic Party, the majority of the US Congress, announced a wealth tax imposed on those at the top of the economy.
Democratic senator Elizabeth Warren, who is known as left-wing tycoon, announced on the 1st (local time) that they have initiated the “Ultra-Millionaire Tax Act.” The media reported.
The aim is to raise funds to overcome the economic difficulties caused by the novel coronavirus infection (Corona 19) pandemic and to resolve income inequality caused by intensifying polarization.
The bill imposes a 2% annual tax on households with net assets of more than $50 million (approximately 56.3 billion won), and adds 1% VAT to those with assets exceeding $1 billion (1,126 billion won) for a total of 3%. The main idea is to pay the tax of
Left-wing Senator Bernie Sanders is also supporting the bill.
Senator Warren said in a statement that “wealth tax should be a top priority on the list to help Congress pay additional plans to save our economy.”
“This revenue is the money that should be invested in childcare, early education, primary and secondary education, and infrastructure, which are the top priorities of President Joe Biden and the Democratic Party.”
“The controversial bill is similar to what Warren proposed in the 2019 Democratic presidential race,” CNN said. It was,” he said.
In fact, it is generally analyzed that the pandemic has a very heterogeneous effect on American families. The high-income class maintains their jobs and net assets are owed to the boom in the stock market, while the low-income class is hit hard by layoffs.
About 100,000 US households are subject to tax, according to an analysis by Professor Gabriel Zukman, E-Manual Sas at the University of California at Berkeley, who worked on the bill. They have to pay an additional $3 trillion (about 3,300 trillion won) in tax over 10 years.
They said that wealth has increased over the past two years, especially at the top of billionaires, and that it is expected to continue.
However, some point out that such taxation for the rich is difficult to realize.
CNN pointed out, “It is questionable whether it will be allowed in the constitution, such as disagreeing opinions of legal scholars.”
“The bill is unlikely to be enacted in the near future,” said The Hill, a political media outlet. “President Biden did not require a wealth tax, and Finance Minister Janet Yellen also mentioned the enforcement issue.” However, he predicted that “the debate within the Democratic Party will intensify as the wealth tax bill is announced.”
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