Democratic presidential candidate, Sen. Elizabeth Warren (D-MA) addresses the crowd at the 2019 South Carolina Democratic Party State Convention on June 22, 2019 in Columbia, South Carolina.
Sean Rayford | Getty Images
Presidential candidate Sen. Elizabeth Warren, D-Mass., has garnered a reputation during the campaign as a liberal firebrand with a plan for everything.
Her crusade against the wealthy of America has rankled donors and politicians in the upper echelons of both the Democratic and Republican parties but has resonated with potential voters ahead of the Democratic primaries.
Here’s a look at the taxes Warren plans to enact if she wins the White House in 2020:
On the campaign trail, Warren’s Ultra-Millionaire Tax has become her signature and most popular policy.
The plan would call for a 2% tax on every dollar a household makes above $50 million, which would increase to a 3% tax for households earning above $1 billion.
Warren projects her plan would raise more than $2.75 trillion in a 10-year span, which would allow her to finance some of the more ambitious parts of her agenda, such as universal child care, free public college and the cancellation of all student debt.
Americans with a net worth over $50 million who renounce their citizenship to dodge the tax will be subject to a 40% “exit tax.”
Excessive Lobbying Tax
Warren’s Excessive Lobbying Tax aims to deter corporations and trade organizations from influencing government through high spending. It would tax firms that spend between $500,000 and $1 million on lobbying at a rate of 35%, which increases to a 60% rate on firms that spend above $1 million and 75% on firms that spend above $5 million.
The money raised from the taxes would be committed to Warren’s “Lobbying Defense Trust Fund,” dedicated to strengthening government against the influence of lobbyists.
Real Corporate Profits Tax
Warren’s zeal for taking on big corporations in the wake of the 2008 financial crisis sent her to the forefront of financial reform, and her tax on corporate profits is yet another way she plans to tax wealth.
The 7% corporate tax would apply to every dollar above $100 million that a company reports in profits. The tax would exist in conjunction with the overall corporate tax rate, which Warren hopes will raise $1 trillion over the next 10 years.
Increase in Social Security contributions for the top 2%
A significant part of Warren’s policy agenda includes the expansion of Social Security, which she hopes will be the biggest increase to the retirement program in 50 years.
Warren’s plan intends to give current and future recipients $200 more per month. It would be financed by a 14.8% contribution requirement on individual wages above $250,000 as well as a 14.8% contribution requirement on net investment income for individuals making more than $250,000 and families making more than $400,000.
Rollback of Tax Cuts and Jobs Act
The 2017 Tax Cuts and Jobs Act was one of the biggest and most controversial bills passed by the Trump administration. Warren joined a chorus of opponents to the bill who considered it a giveaway to corporations. If she were to win the presidency, a core part of her agenda would be rolling back the legislation and restoring the previous corporate tax rate.
Increased tax rate for gun manufacturers
Increasing accountability for private equity firms
Moving military contractors to carbon net-zero emissions
As part of her climate change agenda, Warren aims to have the military achieve carbon net-zero emissions by 2030. Military contractors will also have to meet this standard, and those who don’t will pay a fee amounting to 1% of the total value of the contract, which will be reinvested into improving military infrastructure.
‘Medicare for All’
Source: Top News and Analysis (pro)