Wealth Tax

A wealth tax would impose a tax on a household’s net assets above a certain threshold. Specifically, EWC’s Five and Dime Wealth Tax would place a 5% tax on assets over $50 million, and 10% over $250 million. It would work to curb past and existing accumulations of excessive wealth that are often untaxed and passed down from generation to generation, adding to dynastic family wealth.

Given the amount of wealth that has been hoarded over the last few decades, and the investment returns earned by the ultra-rich, this is a fairly modest tax.  Over a 10-year period, a person with $1 billion when the tax first goes into effect would actually still have $1 billion 10 years later.  However, rather than have the projected 2000 billionaires ten years from now, the tax would keep the number down to the current 1000 billionaires.

The wealth tax dividend, the amount of money raised by the tax would amount to as much as $7 trillion over ten years that could be used to reduce the deficit, provide middle class taxpayer relief, and invest in critically needed social programs.

A wealth tax would impose a tax on an individual’s assets above a certain threshold. Specifically, EWC’s Five and Dime Wealth Tax would place a 5% tax on assets over $50 million, and 10% over $250 million. It would work to curb past and existing accumulations of excessive wealth that are often untaxed and passed down from generation to generation, adding to dynastic family wealth.

Given the amount of wealth that has been horded over the last few decades, and the investment returns earned by the ultra-rich, this is a fairly modest tax.  Over a 10-year period, a person with $1 billion when the tax went into effect would actually still have $1 billion 10 years later.  However, rather than have the projected 2000 billionaires ten years from now, the tax would keep the number down to the current 1000 billionaires.

The wealth tax dividend, the amount of money raised by the tax, would amount to as much as $7 trillion over ten years that could be used to reduce the deficit, provide middle class taxpayer relief, and invest in critically needed social programs.