(CNSNews.com) -Sen. Bernie Sanders, who won Tuesday’s Democratic primary in New Hampshire, is proposing a federal tax increase that he says will bring in $4.35 trillion in revenue over the next ten years.
As he explains it, the tax will specifically target 180,000 households. It will not apply to their income--which is already subject to the federal income tax--but to their assets and savings.
“In order to reduce the outrageous level of inequality that exists in America today and to rebuild the disappearing middle class, we must establish an annual tax on the extreme wealth of the top 0.1%,” says the summary of the tax plan on Sanders’ campaign website.
This tax plan, says the website, will "raise an estimated $4.35 trillion over the next decade and cut the wealth of billionaires in half over 15 years, which would substantially break up the concentration of wealth and power of this small privileged class."
“This tax on extreme wealth would have a progressive rate structure that would only apply to the wealthiest 180,000 households in America who are in the top 0.1 percent,” says the Sanders website.
“It would start with a 1 percent tax on net worth above $32 million for a married couple,” it says.”That means a married couple with $32.5 million would pay a wealth tax of just $5,000.
“The tax rate would increase to 2 percent on net worth from $50 to $250 million, 3 percent from $250 to $500 million, 4 percent from $500 million to $1 billion, 5 percent from $1 to $2.5 billion, 6 percent from $2.5 to $5 billion, 7 percent from $5 to $10 billion, and 8 percent on wealth over $10 billion,” it says. “These brackets are halved for singles.”
“Under this plan, the wealth of billionaires would be cut in half over 15 years which would substantially break up the concentration of wealth and power of this small privileged class,” it says.
To make sure that Americans do not evade this new wealth tax, Sanders’ plan calls for the creation of a “national wealth registry,” for the IRS to perform regular audits, and for an “exit tax” of 40 to 60 percent on the wealth of all Americans who try to evade the tax by leaving the country.
“In order to ensure that the wealthy are not able to evade the tax, the proposal includes a number of key enforcement policies,” says the summary on Sanders’ campaign website.
“First, it would create a national wealth registry and significant additional third party reporting requirements,” it says.
“Second,” it says, “it includes an increase in IRS funding for enforcement and requires the IRS to perform an audit of 30 percent of wealth tax returns for those in the 1 percent bracket and a 100 percent audit rate for all billionaires.
“Third,” it says, “the wealth tax includes a 40 percent exit tax on the net value of all assets under $1 billion and 60 percent over $1 billion for all wealthy individual seeking to expatriate to avoid the tax.”
To see the full summary of Sanders’s tax plan click here.