Jeff Bezos and Bill Gates would be nowhere close to being as rich as they are today, and would have only a fraction of their wealth, had US President hopeful Elizabeth Warren's much-talked-about proposed wealth tax been there for long. If effective since 1982, Elizabeth Warren's "six cents for each dollar" idea would mean that Amazon founder Jeff Bezos' fortune would be limited to less than $50 billion against $160 billion, ie less than one-third of what it is now. Similarly, Bill Gates would be left with only $13.9 billion in 2018 instead of $97 billion, The New York Times reported citing estimates from Elizabeth Warren's advisors.
Billionaires will pay this amount in taxes under Warren's plan
Warren has also launched a tax calculator on her website and said that Jeff Bezos will only be shelling out about $6.5 billion per year from his large corpus of fortunes. On the other hand, Bill Gates, who is currently the second richest person on the globe, will pay $6.4 billion if Elizabeth Warren's proposal turns effective. Facebook founder Mark Zuckerberg will also pay massive taxes at $4.2 billion a year, tax calculator showed.
A study conducted by Gabriel Zucman and Emmanuel Saez, two economists who have advised Elizabeth Warren, shows that the top 400 wealthiest people in the United States would have an average wealth of $3.1 billion, down by over half from the current average of $7.2 billion.
What is Elizabeth Warren's tax proposal?
Elizabeth Warren, an American politician, is currently a 2020 presidential candidate who has proposed taxing the super rich Americans at the rate of 2% for those with total worth between $50 million and $1 billion, and at 6% for wealth soaring above $1 billion. Her proposed wealth tax, which is likely to target America's 75,000 wealthiest families, is titulated to provide for "universal child care, quality public education, forgive student loan debt, provide free public college, and help finance Medicare for All," according to statement from her website.
Elizabeth Warren, however, has been receiving flak from many billionaires who are bashing the idea. Recently, billionaire investor Mark Cuban also joined the rising chorus against Elizabeth Warren and said that the proposed wealth tax "diverts attention from reality", Cuban said in a series of tweets. He also said that the proposal is a way to hide "her income and net worth as anything else".