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

A new wealth tax proposed by Sen. Elizabeth WarrenElizabeth WarrenWorld passes 3 million coronavirus deaths Poll: 56 percent say wealth tax is part of solution to inequality Democratic senators call on Biden to support waiving vaccine patents 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 BezosNASA picks Elon Musk's SpaceX to build spacecraft for manned moon missions Harvard Business community backs alumna's discrimination lawsuit against Amazon Union leader: 'Amazon left no stone unturned' in unionization fight 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 MuskNASA picks Elon Musk's SpaceX to build spacecraft for manned moon missions Why does Bernie Sanders want to quash Elon Musk's dreams? Hillicon Valley: Intel heads to resume threats hearing scrapped under Trump | New small business coalition to urge action on antitrust policy | Amazon backs corporate tax hike to pay for infrastructure MORE would pay an additional $5.2 billion, Bill Gates would pay $4 billion more and Facebook CEO Mark ZuckerbergMark Elliot ZuckerbergHillicon Valley: Biden administration sanctions Russia for SolarWinds hack, election interference Instagram sparks new concerns over 'kidfluencer' culture Mark Zuckerberg, meet Jean-Jacques Rousseau? MORE would see his tax bill increase by about $3 billion.


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 BidenGraham: 'I could not disagree more' with Trump support of Afghanistan troop withdrawal Obama, Shaquille O'Neal, Charles Barkley team up to urge communities of color to get coronavirus vaccine Biden to hold second meeting with bipartisan lawmakers on infrastructure 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.