Elizabeth Warren, Bernie Sanders propose 3% wealth tax on billionaires - CNBC

— on Monday proposed a 3% total annual tax on wealth exceeding $1 billion.

They also called for a lesser, 2% annual wealth tax on the net worth of households and trusts ranging from $50 million to $1 billion.

"The ultra-rich and powerful have rigged the rules in their favor so much that the top 0.1% pay a lower effective tax rate than the bottom 99%, and billionaire wealth is 40% higher than before the Covid crisis began," Warren said Monday in a statement.

Aside from Warren and Sanders, other co-sponsors of the legislation include: Sens.

A 2020 Tax Foundation analysis of separate Warren and Sanders wealth tax proposals during their presidential runs found they would reduce U.S.

A wealth tax would also face administrative and compliance challenges, such as difficulty valuing assets and likely tax evasion schemes, according to the Tax Foundation?