Sen. Elizabeth Warren (D-MA) has proposed a new tax bill aimed at people and trusts with "ultra-millionaire" wealth.
Sen. Bernie Sanders (I-VT) is a co-sponsor of the "Ultra Millionaire Tax Act of 2021." Rep. Brendan Boyle (D-PA) and Rep. Pramila Jayapal (D-WA) proposed the bill in the U.S. House of Representatives.
The act would levy a 2% tax annually against trusts and households with a net worth exceeding $50 million. Those with a net worth greater than $1 billion would pay a 3% annual tax. The tax would reportedly bring in about $3 trillion in a 10-year period.
"The Ultra Millionaire Tax Act of 2021 would level the playing field and narrow the racial wealth gap by asking the wealthiest 100,000 households in America, or the top 0.05%, to pay their fair share," a statement from Warren reads, in part.
The statement also reports that currently, the effective tax rate for the nation's .1% of wealthiest people is lower than that paid by 99% of Americans.
"A wealth tax is popular among voters on both sides for good reason: because they understand the system is rigged to benefit the wealthy and large corporations," Warren said.
Money collected through the wealth tax would fund K-12 education, child care and early education, and infrastructure.