August 5, 2021

US Senator Elizabeth Warren is circling back on one of her key presidential campaign pledges that targets the wealthiest of the wealthy.

Instead of taxing income, Warren’s Ultra-Millionaire Tax would focus on individuals or families with an accumulated wealth in excess of $50 million in assets, and would be applied on a sliding scale. The proposed tax would include household assets held anywhere in the world including residences, closely held businesses, assets held in trust, retirement accounts/assets, assets held by minor children and any personal property with a value of $50,000 or more. The initial proposal included a 2% annual tax for households with a net worth of more than $50 million but less than $1 billion. It also included an additional 4% annual tax for households with a net worth above $1 billion, deemed the Billionaire Surtax, which would be added on top of the Ultra-Millionaire Tax for a total of 6%. We aren’t sure whether these percentages will remain once she introduces the legislation.

But, what we do know is that there will not be additional taxes on the 99% of US households with a net worth of less than $50 million. This tax would affect roughly 75,000 households and raise $3.75 trillion in revenue over a ten-year period.

“…wealth inequality is even more extreme in our nation than income inequality. It is time for a #WealthTax in America to level the playing field and build an economy that works for everyone.”

– Elizabeth Warren via Twitter

This information is general, not specific, and is only meant to give perspectives on matters discussed which may change without notice. It is not intended to be tax or financial advice.  Information has been obtained from various sources believed to be reliable, but interpretations and accuracy are not assured. Please contact us for any questions you may have or to revisit your planning strategies.