Arguably the most frequently discussed part of Sen. Warren's presidential candidacy platform is her wealth tax proposal. A wealth tax would make ultra-wealthy Americans pay the federal government a small percentage of their net worth each year. And she's not the only presidential candidate behind the idea: In September, Bernie Sanders unveiled an even more aggressive wealth tax plan.
That concept isn't supported only by those who have an ax to grind with the ultra-wealthy. Billionaires and multimillionaires like Mark Cuban, Marc Benioff, Ray Dalio, and Abigail Disney have also publicly asked the government to raise their taxes. And the idea has support among Americans: An Insider poll shows that more than half of Americans support Warren's wealth tax proposal.
These calls for a tax on the ultra-wealthy come as the divide between America's rich and poor continues to expand. In 2018, income inequality in the US reached its highest level in more than half a century. The ultra-wealthy actually paid a smaller portion of their income in taxes than average Americans in 2018, an analysis of tax data by the University of California at Berkeley's Emmanuel Saez and Gabriel Zucman found.
Proponents of a wealth tax say the measure could reduce inequality by funding education reform, health care, and infrastructure reforms, but experts told Business Insider in September that enforcement issues and constitutional challenges make the chances of implementing such a tax before 2025 essentially zero.