Taxing the rich is something that Democrats have supported and backed consistently. When Democrats advocate for this wealth tax or that wealth tax, they claim it’s all about making rich Americans pay what Democrats deem as “their fair share.”
Taxing the wealthy is a policy that’s been tried and failed so many times. It discourages job creation and largely causes successful Americans who have amassed considerable wealth to take the jobs they create elsewhere for the sake of saving themselves a tax bill.
New York is a great example of this. Leaders in the Empire State have consistently increased taxes; now, the New York governor is in a position where he’s begging wealthy New Yorkers not to leave the state for places like Florida and Texas.
Despite the failure of taxing the wealthy, Democrats continue to push for it anyway. In this week alone, Americans learned that left-wing Sen. Elizabeth Warren is proposing an Ultra-Millionaire Tax Act in Congress, Newsmax reports.
What to Know About the Ultra-Millionaire Tax Act
Under Warren’s Ultra-Millionaire Tax Act, households earning more than $50 million annually would face a series of financial penalties. This includes a 2% tax on not only these households, but also associated trusts. Meanwhile, Americans with net worths that surpass $1 billion would immediately face a 3% tax.
We need to vaccinate millions, open schools safely, and get relief to families. President Biden says, "[i]t’s people’s lives. Real, live people are hurting, and we can fix it.” We're lucky he's in charge and not the GOP gleefully quoting Larry Summers as an excuse to do nothing.
— Elizabeth Warren (@SenWarren) March 2, 2021
Warren and the other congressional Democrats backing this legislation argue that it’ll make the U.S. economy fairer.
However, while leftists are supportive of hiking taxes on the wealthy (and eventually the middle class), they have never supported reducing taxes; tax cuts, rather than tax hikes, would inherently help the economy by leaving Americans with more money to save, spend, or invest.
The Reality About the Ultra-Millionaire Tax Act
Despite Warren’s calls for a wealth tax in America, it’s unlikely to garner the congressional support it would need to become law. This also isn’t the first time that Warren has proposed increasing taxes on the wealthy; it’s a failed policy that she ran on during the primary season of the 2020 presidential election.
A two-cent #WealthTax on fortunes above $50 million would help level the playing field a little bit to #BuildBackBetter and make investments in America’s future. pic.twitter.com/57ARBS7l5f
— Elizabeth Warren (@SenWarren) March 1, 2021
Warren’s Ultra-Millionaire Tax Act even appears to conflict with the policies of President Biden himself. The Democrat president has supported hiking wealthy Americans’ income tax rates; however, Biden has not endorsed taxing wealth itself as Warren has.
What do you think about the Ultra-Millionaire Tax Act? Do you think something like this would pass in Congress or earn support from the current president? Let us know down below in the comments section.