Sen. Bernard Sanders on Tuesday rolled out a new plan to tax the ultra-rich that he says will raise trillions to help fund his big government vision and strengthen IRS enforcement to make sure people abide by the law.
The Vermont independent’s “Extreme Wealth Tax” plan taxes individuals on a sliding scale and is broken up into eight income levels.
On the low side, individuals worth more than $32 million would be taxed at 1%, and on the high side, individuals worth more than $10 billion would get hit with an 8% tax.
“At a time when millions of people are working two or three jobs to feed their families, the three wealthiest people in this country own more wealth than the bottom half of the American people,” Mr. Sanders said. “Enough is enough. We are going to take on the billionaire class, substantially reduce wealth inequality in America and stop our democracy from turning into a corrupt oligarchy.”
The calls to tax the wealthy have proven to be politically popular in the 2020 Democratic primary race, but they likely face an uphill battle in Congress.
Lawmakers from both parties have expressed doubts about the array of left-wing plans that 2020 Democrats are campaigning on.
Still, Sen. Elizabeth Warren’s plan to slap a 2% tax on individuals with more than $50 million in assets has proven wildly popular among liberal activists, and the crowds that turn out for her campaign rallies are now known for bellowing out “2 cents! 2 cents!” chants.
The Sanders’ plan also would increase funding for the IRS to make sure that the ultra-wealthy cannot skirt the tax. This includes setting aside more money to perform audits of 30% for those in the 1% bracket and a 100% audit rate for all billionaires.
Mr. Sanders said his plan will raise $4.25 trillion and that new revenue could go a long way in covering the cost of his plan to expand affordable housing, provide universal child care and switching to a “Medicare for All” health care system.
• Seth McLaughlin can be reached at smclaughlin@washingtontimes.com.
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