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Elizabeth Warren proposes new 'wealth tax' on Americans worth more than $50 million

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This tax would target assets not income

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Sen. Elizabeth Warren's presidential campaign has revealed that, if elected, she plans to slap a 2 percent wealth tax on any Americans with assets worth more than $50 million, and a 3 percent wealth tax on anyone with assets worth more than $1 billion.

Here's what we know

Warren (D-Ma.) announced her new plan for a tax rate on Twitter on Thursday. She stressed in multiple tweets that the tax would only affect "that tippy top 0.1% — those with a net worth of over $50 million." This rate would tax assets, instead of focusing on income.

The Washington Post reported that Emmanuel Saez and Gabriel Zucman, two liberal economists from the University of California at Berkeley, helped Warren to come up with this tax plan. Saez told the Post that this new tax would raise roughly $2.75 trillion over the course of 10 years. In her tweets, Warren rounded this up to $3 trillion.

"The Warren wealth tax is pretty big. We think it could have a significant affect on wealth concentration in the long run," Saez told the Post.

What else?

Saez and Zucman have also recently come out publicly in support of a proposal by Rep. Alexandria Ocasio-Cortez (D-N.Y.) to place a 70 percent income tax on Americans making more than $10 million.

Warren announced at the end of December that she was launching an exploratory committee to determine whether or not she would run for president in 2020. Warren has to compete with a growing field of Democratic presidential hopefuls, including Former Housing and Urban Development Secretary Julian Castro, Rep. Tulsi Gabbard (D-Hawaii), Rep John Delaney (D-Md.), and Sen. Kamala Harris (D-Calif.). Sen. Kirsten Gillibrand (D-N.Y.) has also launched an exploratory committee like Warren.

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