Document Type

Article

Publication Date

8-2026

Abstract

Economists Emmanuel Saez and Gabriel Zucman. They argued that a wealth tax would be a key policy tool to reduce wealth inequality and effectively tax the rich, could raise significant revenue, and could be enforced effectively. Other academics, like Wojciech Kopczuk, Natasha Sarin, Jeffrey Pennell, and Robin Morgan are more skeptical. In the legal literature, there has been an extensive discussion over whether a wealth tax can be constitutional. In Moore, the majority There have been numerous proposals recently to institute a wealth tax in the United States, either in addition to existing taxes or in lieu of some of them (for example, the estate tax). Sens. Elizabeth Warren, D-Mass., and Bernie Sanders, I-Vt., proposed wealth taxes on billionaires during their 2019-2020 campaigns for president. On March 1, 2021, Warren, Sanders, and eight other senators introduced the Ultra-Millionaire Tax Act (S. 510) in Congress. Under the proposed bill, there would be a 2 percent tax on all individual wealth between $50 million and $1 billion, and a 3 percent tax on any wealth above the $1 billion mark. This proposal was reintroduced by Sen. Warren and others in 2024. On March 2 Sen. Sanders and Rep. Ro Khanna, D-Calif., introduced a 5 percent wealth tax on billionaires.

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Reprinted with the permission of Tax Analysts.

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