The lawmakers said Monday the new tax, dubbed the Ultra-Millionaire Tax Act, would build a "fairer" economy with a 2% annual tax on households and trusts estimated at between $50 million and $1 billion.
All net worth over $1 billion would be taxed at 3%.
The measure – like other wealth taxes Warren has offered in the past – is unlikely to earn the support required to pass, especially in the equally split Senate, but could serve as a label for progressives in Congress and a notice of the restiveness on the party's leftists.
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The group maintains the proposal would produce "at least $3 trillion in revenue over 10 years," citing a Feb. 24 analysis from economists Emmanuel Saez and Gabriel Zucman from the University of California-Berkeley.
"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 in a statement. "A wealth tax is popular among voters on both sides for good reason: because they understand the system is rigged to benefit the wealthy and large corporations."
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While President Joe Biden pushed to raise the income tax rate for top earners, he has not backed a wealth tax. White House press secretary Jen Psaki said Biden will consider making sure the wealthy "pay their fair share" as part of the next package of legislation.
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"Addressing the inequities in the tax code is something he talked about as part of the Build Back Better agenda and something he remains committed to," Psaki said Monday. "He has a lot of respect for Sen. Warren and is aligned in the goal of making sure the ultra-wealthy and big corporations finally pay their fair share."
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A wealth tax would be especially tough to pass in the current U.S. Senate, which is split 50-50 between Democrats and Republicans.
Democrats control the agenda since Vice President Kamala Harris can cut bonds, but most bills require support from 60 senators to advance.
And Democrats have been powerless to gather even 50 votes from some administration suggestion, including a $15 hourly minimum wage. A wealth tax likely would be even more divisive.
Nevertheless, Democrats are planning to use special budget reconciliation methods to pass a bill with a simple majority later in the year that will include parts of a massive infrastructure package. At that point, taxes to pay for the build-out would be on the board. And under Senate rules, tax hikes usually are allowed in budget bills.
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