NEWS | Elizabeth Warren to propose new wealth tax Economic advisor Sen. Elizabeth Warren, D Mass., is planning to propose a “wealth tax” on some of the richest Americans, an economist who advises her told CNBC on Thursday. The new tax from Warren, who President in 2020, would only apply to Americans with more than dollar 50 million in assets. The Washington Post the development. “We helped her with the numbers,” economist Emmanuel Saez told CNBC. He said he believed the proposal would be officially announced on Friday. He said his understanding was that the Warren team had already spoken with The Washington Post at the time he told them the details of the report. “The announcement will be made tomorrow I think, and I was confused because when I talked to the person I thought that Warrens team had already talked to the press,” he said. “I shouldnt be talking, you know.” The wealth tax is projected to apply to less than 0.1 percent of U.S. households, and would raise dollar 2.75 trillion over 10 years, Saez said. Warrens proposal comes alongside other Democratic lawmakers plans to raise taxes on the wealthiest Americans to pay for ambitious policy goals, including a “green new deal.” The development has not gone unnoticed by affluent investors and executives, many of whom are meeting this week at the World Economic Forum in Davos, Switzerland. “By the time we get to the presidential election, this is going to gain more momentum,” Scott Minerd, global chief investment officer for dollar 265 billion Guggenheim Partners, . He was referring specifically to freshman Rep. Alexandria Ocasio Cortezs proposal for a 70 percent marginal rate on income above dollar 10 million. Warrens proposal, however, differs from Ocasio Cortezs in distinct ways. The Post reported that Warren has been advised by two left leaning economists on a deal that would levy a 2 percent wealth tax on Americans with dollar 50 million plus in assets. For Americans with assets above dollar 1 billion, that tax rate would increase to 3 percent. The newspaper, citing a person familiar with the plan, reported that Warrens proposal would try to counter tax evasion by boosting funding for the Internal Revenue Service, and by levying a one time tax penalty on people with more than dollar 50 million who try to renounce their U.S. citizenship. It would also require that a certain number of people who pay the wealth tax be subject to annual audits, The Post reported. Tax the rich policies are not a new phenomenon among political candidates. In fact, Trump himself proposed a similar measure in 1999 as he explored a presidential bid as a prospective Reform Party nominee. Trumps plan was to impose a one time 14.25 percent tax on individuals and trusts worth more than dollar 10 million, according to reports at the time. On Tuesday, Saez and another of her economic advisors, Gabriel Zucman, published an article in The New York Times defending Ocasio Cortezs proposal. “An extreme concentration of wealth means an extreme concentration of economic and political power. Although many policies can help address it, progressive income taxation is the fairest and most potent of them all,” they wrote. When Warren announced her exploratory committee for a 2020 presidential bid, she couched the decision in the language of economic equity. “Our government is supposed to work for all of us, but instead, it has become a tool for the wealthy and well connected,” Warren said in an announcement video. This is breaking news. Check back for updates. Share this video… Got a confidential news tip? We want to hear from you. Sign up for free newsletters and get more CNBC delivered to your inbox Get this delivered to your inbox, and more info about our products and services.  © 2019 CNBC LLC. All Rights Reserved. Data is a real time snapshot asterisk Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Data also provided by YOUR BROWSER IS NOT SUPPORTED. The requested video is unable to play. The video does not exist in the system. Were not able to play this video if an ad blocker is enabled. Please disable your ad blocker on CNBC and reload the page to start the video.

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