Elizabeth Warren targets corporate profits with fresh 7% surtax proposal

In a letter released by Warren aides, University of California-Berkeley economists Emmanuel Saez along with Gabriel Zucman estimated in which 1,0 public companies could be subject to the tax if the item took effect in 2019. Warren said she designed the item to avoid hitting tiny businesses or even large ones in which experience a subpar year.

Warren aides said they were unaware of previous attempts to enact a tax of This kind of kind. yet they pointed to polls showing strong public support for producing large corporations pay more — even within a GOP increasingly dependent on blue-collar voters.

Read more: ‘How about paying your taxes?’—Walmart responds to Amazon’s challenge over pay

Her proposals, like the major plans of various other 2020 Democratic candidates, stand no chance of enactment within the next two years. yet they signal ideas in which could take center stage if a Democrat wins the presidency in 2020 along with the party takes control of Congress.

Warren has previously proposed a substantial increase in estate taxes to help pay for expanding the supply of affordable housing, along that has a wealth tax on the richest Americans.

The wealth tax could raise $2.7 trillion over 10 years, according to projections. Roughly $700 million via the wealth tax could finance her proposal for universal child care along with early childhood education. in which could leave her $2 trillion for either deficit reduction or additional spending plans as yet unannounced.

Warren didn’t specify how she could spend the $1 trillion over 10 years in which the corporate profits surtax could generate, either. in which brings the total of available fresh revenue under her proposals to $3 trillion.