(RepublicanInformer.com)- If the United States instituted a small tax on the country’s richest people, it would result in the county raising more than $900 billion on an annual basis.
A new report suggests that this wealth tax could pay for the cost of sending to additional $1,400 stimulus checks to millions of Americans.
On Wednesday, this analysis was published by four groups — the Institute for Policy Studies, the Fight Inequality Alliance, Patriotic Millionaires and Oxfam. They also noted that the richest people in the world have experienced a dramatic increase in their wealth as the COVID-19 pandemic has deepened inequality across the world.
The report said that since the outset of the COVID-19 pandemic, the wealth of billionaires in America has increased $2 trillion.
The report suggested implementing a wealth tax at a 2% rate for those who have more than $5 million, with the rate increasing to 5% for people who are billionaires. If that were to be passed, it would result in the country raising $928.39 billion every year.
If the tax were even more progressive, rising all the way up to 10% for people who have a worth greater than $1 billion, the measure would result in $1.34 trillion raised every year.
Even the lower of those two amounts could result in increasing the health budget for the federal government by a third, or could eliminate roughly half of out-of-pocket costs households currently experience for health.
Last year’s American Rescue Plan included roughly $400 billion to send $1,400 stimulus checks to many Americans. The report said that as Americans continue to struggle during the pandemic, this new wealth tax could result in two more of those $1,400 checks.
If a wealth tax was passed around the world, it could raise up to $2.52 trillion every year, which would be enough money to get approximately 2.3 billion people out of poverty, while also guaranteeing social protection and healthcare for people living in countries with lower income, and also producing enough vaccines for the whole world.
This report follows on the footsteps of Patriotic Millionaires urging governments around the world to increase taxes on the wealthy. That group includes more than 100 of the richest people in the world.
Recently, that group released an open letter that coincided with the “virtual Davos” conference, held by the World Economic Forum earlier this week. In that letter, they wrote:
“As millionaires, we know that the current tax system is not fair. Most of us can say that, while the world has gone through an immense amount of suffering in the last two years, we have actually seen our wealth rise during the pandemic — yet few if any of us can honestly say that we pay our fair share in taxes.”
Some of the people who signed that letter were Nick Hanauer, an entrepreneur who was one of Amazon’s early investors, and Abigail Disney, an heiress of The Walt Disney Company.