SPONSORED:

Warren's wealth tax would cost 100 richest Americans $78 billion

A new wealth tax proposed by Sen. Elizabeth WarrenElizabeth WarrenSenators shed masks after CDC lifts mandate Helping students make informed decisions on college Student debt cancellation advocates encouraged by Biden, others remain skeptical MORE (D-Mass.) and other progressives on Monday would result in the 100 richest Americans paying over $78 billion in taxes annually, according to analysis by Bloomberg News.

The bill, called the Ultra-Millionaire Tax Act, would require households with a net worth of more than $50 million to pay 2 percent of their wealth every year. A 1 percent surtax would be added for those with a net worth in excess of $1 billion.

That would mean Amazon founder Jeff BezosJeffrey (Jeff) Preston BezosOn The Money: IRS to start monthly payments of child tax credit July 15 | One-fourth of Americans took financial hits in 2020: Fed Pro-tax millionaires protesting in front of Bezos's homes Musk's SpaceX has a competitive advantage over Bezos' Blue Origin MORE, the richest person in the world, would face an additional $5.4 billion in taxes if the bill were signed into law this year, according to Bloomberg News. Tesla CEO Elon MuskElon Reeve MuskOn The Money: IRS to start monthly payments of child tax credit July 15 | One-fourth of Americans took financial hits in 2020: Fed Putting the brakes on cryptocurrencies: Well done Elon Musk Hillicon Valley: Parler's return to Apple store poses new challenges | Biden revokes Trump-era order targeting shield for website operators MORE would pay an additional $5.2 billion, Bill Gates would pay $4 billion more and Facebook CEO Mark ZuckerbergMark Elliot ZuckerbergUS billionaire wealth skyrocketed 55 percent during pandemic, accelerating inequality Bipartisan attorneys general urge Facebook to scrap planned Instagram for kids Hillicon Valley: Broadband companies funded fake net neutrality comments, investigation finds | Twitter rolls out tip feature | Google to adopt 'hybrid work week' MORE would see his tax bill increase by about $3 billion.

ADVERTISEMENT

The legislation, which is unlikely to pass Congress, would affect tax payments starting in 2023.

"As Congress develops additional plans to help our economy, the wealth tax should be at the top of the list to help pay for these plans because of the huge amounts of revenue it would generate," Warren said on Monday when unveiling the new proposal.

"This is money that should be invested in child care and early education, K-12, infrastructure, all of which are priorities of President BidenJoe BidenBiden's quiet diplomacy under pressure as Israel-Hamas fighting intensifies Overnight Defense: Administration approves 5M arms sale to Israel | Biden backs ceasefire in call with Netanyahu | Military sexual assault reform push reaches turning point CDC mask update sparks confusion, opposition MORE and Democrats in Congress," she added. "I'm confident lawmakers will catch up to the overwhelming majority of Americans who are demanding more fairness, more change, and who believe it's time for a wealth tax."

According to Bloomberg News, the 100 richest Americans added $598 billion to their fortunes last year. Warren's proposed tax would take 13 percent of that added wealth.

The bill includes a 40 percent exit tax on wealthy Americans who may seek to renounce their U.S. citizenship to avoid paying the tax.