Senator Elizabeth Warren on Tuesday defended her latest wealth tax proposal, telling CNBC she believes most Americans will not mind being rich enough to pay for it.
The Massachusetts Democrat made the comments in an interview with “Squawk Box,” a day after launching a proposal for an annual tax of 2%, or two cents, for every dollar of people’s wealth worth more. of $ 50 million. People with fortunes worth more than $ 1 billion would face an annual tax of 3%, or 3 cents, for every dollar above that threshold.
Warren campaigned for a similar idea of wealth taxes during his failed campaign for the 2020 Democratic presidential nomination.
Other progressives, including Vermont Senator Bernie Sanders, signed Warren’s plan as sponsors. During his failed presidential campaign, Sanders also favored a wealth tax.
“It has been created now to say that we will not charge taxes on any assets worth less than $ 50,000, so this is not intrusive. It is not about entering people’s homes and valuing their sub-zeros or finding out what his four years are. old cars are worth it, “Warren told CNBC.
“But he says if you have a fortune above $ 50 million, you pay for it. And if your fortune is below $ 50 million, no. It’s not good for you,” he added. “I think most people would rather be rich and pay two cents. That’s not very fancy. It’s really a wealth tax in excess of $ 50 million.”
The idea of a wealth tax in the U.S. has faced several criticisms, including from Treasury Secretary Janet Yellen, who has said it has “very difficult implementation issues.”
Warren said the coronavirus crisis has exacerbated inequality in the United States and demonstrated a greater need for a wealth tax to generate more federal revenue, which the proposal calls for to be invested in early childhood education programs and infrastructure. .
The senator said his plan would raise $ 3.75 trillion over the next ten years.
“We understand the direction we’ve gone. This pandemic has created more billionaires. People who are on top are barely hanging on their nails,” Warren said.