2020 Democratic candidate Elizabeth Warren’s tax plan would result in tax rates eclipsing 100% for some billionaires and multimillionaires, the Wall Street Journal reports.
The combination of tax increases Warren has proposed — including raising the federal income tax rate, imposing a new 14.8% tax for Social Security, and instituting an annual “wealth tax” of up to 6% of assets — could result in the massive tax rate.
According to the Journal:
Consider a billionaire with a $1,000 investment who earns a 6% return, or $60, received as a capital gain, dividend or interest. If all of Ms. Warren’s taxes are implemented, he could owe 58.2% of that, or $35 in federal tax. Plus, his entire investment would incur a 6% wealth tax, i.e., at least $60. The result: taxes as high as $95 on income of $60 for a combined tax rate of 158%.
Warren continues to call her aggressive plan a “two-cent tax” on the wealthy.