Bernie Sanders unveiled a plan to tax the 'obscene wealth gains' of billionaires during the pandemic
- Sanders introduced legislation to tax "the obscene wealth gains" of billionaires during the pandemic.
- The generated revenue would then be used to guarantee Medicare to every American for a year.
- "It is time for the Senate to act on behalf of the working class who are hurting like they have never hurt before, not the billionaire class who are doing phenomenally well," Sanders said in a statement.
- Sander's office estimates the plan would generate $421.7 billion from March to August alone.
Democratic Sen. Bernie Sanders rolled out a plan on Tuesday to tax the "obscene wealth gains" of billionaires during the coronavirus pandemic — and use the generated revenue to guarantee healthcare for every American for a year.
Sanders co-sponsored the "Make Billionaires Pay Act" with Sens. Kirsten Gillibrand and Ed Markey, both Democrats. It would tax 60% of the increase in the net worth of the nation's wealthiest people starting from March 18 through the end of the year.
Then it would "empower" Medicare to pay the out-of-pocket healthcare expenses of everyone in the US for 12 months.
"It is time for the Senate to act on behalf of the working class who are hurting like they have never hurt before, not the billionaire class who are doing phenomenally well," Sanders said in a statement.
The Sanders office estimated the one-time levy could draw a significant amount of money from tech moguls in particular:
- Amazon founder Jeff Bezos: $42.8 billion
- Tesla CEO Elon Musk: $27.5 billion
- Facebook founder Mark Zuckerberg: $22.8 billion
- Walton family: $12.9 billion
His office said the legislation would draw $421.7 billion in additional federal revenue from March to August, citing an estimate from Americans for Tax Fairness, a progressive advocacy group.
Both chambers of Congress need to approve the bill for it to become law. It's a highly unlikely scenario given Republican control of the Senate and President Donald Trump's opposition to tax hikes.
The Vermont senator's legislation aligns with his repeated calls to tax the wealthiest Americans and use the money to fund sweeping progressive priorities. Sanders continues railing against the "rigged economy" and calling for economic equality on Twitter.
During his presidential campaign last year, Sanders proposed slapping a 1% tax onto people's fortunes above $32 million, gradually increasing to 8% for those above $10 billion.
The coronavirus pandemic has renewed attention onto the surging fortunes of some billionaires, the focus of Sanders' tax plan. A study from the left-leaning Institute for Policy Studies in late May indicated that the nation's wealthiest people saw their fortunes collectively grow by 15% from mid-March to May.
However, some have disputed the group's findings. Steve Goldstein of Marketwatch wrote in May that a more accurate gauge of ballooning wealth should start at late February, when the S&P 500 began plummeting on fears of a pandemic.