But what does that really mean?
There are two options: Tax the money they earn, or tax the money they have.
Lets review those options to see how they could impact our lives.
Senator Elizabeth Warren:Wantsa 2% annual tax on families with more than $50 million in wealth.
Senator Bernie Sanders:Potential optionsinclude raising the marginal tax income rate starting with income above $250,000.
The top 0.1% of taxpayers would pay 50% tax on income above 2 million, for example.
Sanders could also tax capital gains and dividends the same as income.
And/or, he could establish a wealth tax on the top 0.1%.
Basically, Sanders has outlined several options but hasnt committed to a specific one.
Its what we have now, but the candidates are saying the current version isnt enough.
Right now, the richest 1% of households pay about 30% in income taxes.
What establishing a wealth tax could do
But thats not all, folks.
What about raising taxes on the wealth people already havenot just annual income, but their assets, too?
Linden writes that taxing the wealth of the richest 1% would generate $4 trillion over 10 years.
A potential wealth tax feels groundbreaking because its totally different than how wealth is taxed now.
Right now, you pretty much fork over taxes when you earn money and when you sell your assets.
A wealth tax would essentially tax the value of everything you hold, every year.
But that doesnt mean Congress isnt already thinking about this issue.
Wyden wants to use that money to shore up Social Security.
If your stock portfolio improves?
If your house gains value?
If your jewelry or artwork appreciates?
You get the idea.
