Warren Backs More Audits for Rich as Part of Wealth Tax Plan
Senator Elizabeth Warren said IRS funding should be bolstered so the richest Americans get audited about once every three years as part of her proposed 2% annual tax on wealth in excess of $50 million.
The Massachusetts Democrat said she wants to nearly double the Internal Revenue Service budget, which would also help with enforcement of a wealth tax. She said she plans to talk to Treasury Secretary Janet Yellen about how to implement such a tax.
“The audit rate of the top one tenth of 1% — the 100,000 families that would be affected — the audit rate will be 30%. That means every three years in effect,” she said Tuesday in an interview with Bloomberg Radio Sound On host Kevin Cirilli.
Warren’s legislation for the wealth tax includes provisions that authorize more funding for the IRS to provide for stricter enforcement of tax laws. She estimates the bill would generate $3 trillion in government funding over a decade, which she said could help pay for programs like universal child care, infrastructure investment and environmental initiatives.
Although her proposal, which would tax wealth above $50 million at 2% and at 3% above $1 billion, is unlikely to make its way through the narrowly divided Congress any time soon, Warren said the idea is gaining ground with the public.
“People across this nation, independents, Republicans, Democrats, a majority of all of them want to see us do a wealth tax because they know the system is rigged against them,” Warren said.
Warren, a candidate in the 2020 Democratic primaries, dismissed criticism that measuring wealth to tax would be too difficult, saying assets like stock portfolios and real estate are easily assessed.