In a world where Sen. Elizabeth Warren’s (D-Mass.) proposed “Ultra-Millionaire” wealth tax becomes law, rich Americans will have every incentive to try avoiding it.
The plan would levy a 3 percent tax on net wealth above $1 billion, as well as 2 percent tax on wealth above $50 million. The plan would quickly begin reducing some of America’s largest fortunes by hundreds of millions of dollars. (Nobody whose net worth is less than $50 million would be affected by the tax.)
Warren has proposed a series of aggressive new enforcement policies designed to prevent the wealthy from escaping it. She wants to dramatically beef up funding for Internal Revenue Service enforcement. She’s proposing a new requirement that a minimum number of very wealthy taxpayers face an audit annually, aiming to ensure they are not hiding assets from the tax collector.