people should pay more, but it would
be almost impossible to put into place
and enforce and to do it each year.
There is just no way this kind of tax can
be practically assessed.”
First, Slott continued, “this is a tax
based on net worth, which is essentially
the same process as prepar-
ing an estate tax return after
death. But under this proposal
the tax would be assessed each
year. This would essentially be
an estate tax every year for this
group. That’s insane.”
Estates of these ultra-
wealthy individuals “often take
years to sort out to determine
the actual value for estate tax
purposes. These estates are
loaded with complex busi-
ness interests, stock and other
property held both in the U.S.
and around the world and in
trusts and other entities that may be dif-
ficult to locate (and they would sudden-
ly be even more difficult to locate — or
disappear altogether — if this was ever
enacted.),” Slott added.
The U.S. “would probably lose billionsin tax revenue from the tax shenanigansthat would follow a tax like the one proposed,” he added.
Also, “remember that these individuals have the means to make sure theywill never pay these taxes,” Slott added.
The Ultra-Millionaire Tax, according to
the lawmakers, also would provide for:
• A $100 billion investment to rebuild
and strengthen the IRS, ensuring the
agency has the resources to hire and
train additional personnel, modernize
IT systems, and implement the new
asset valuation, reporting and enforce-
ment requirements in the bill.
• A 30% minimum audit ratefor taxpayers subject to the Ultra-Millionaire Tax;
• A 40% “exit tax” on the net worth
above $50 million of any U.S. citizen
who renounces their citizenship in
order to escape paying their fair share
• New tools to determine the value of
hard-to-value assets, enabling the IRS to
tighten and expand upon existing valua-
tion rules; and
• Systematic third-party reporting
that builds on existing tax information
exchange agreements adopted after the
Foreign Account Tax Compliance Act,
In early March, Warren was named
chairwoman of two Senate sub-
committees — the Senate Banking
She joined the Senate
Finance Committee in early
As chair of two subcommittees, Warren said she’d“continue to push for racialand economic justice andlasting economic security forfamilies,” and also “use thesecommittees to hold big corporations and their executivesaccountable and to strengthen our banking, securities,
and tax laws — and make surethey are enforced.”
Washington Bureau Chief Melanie Waddell canbe reached at email@example.com.
Bipartisan Bill Bans Stock Ownership for Members
A bipartisan bill that would ban members of Congress from trading individualstocks has been introduced in the House of Representatives and the Senate.
The Ban Conflicted Trading Act would bar members of Congress, along withtheir senior staffers, from buying or selling individual stocks and other investments and from serving on any corporate boards while in office.
New members would be allowed to sell individual holdings within six months ofbeing elected, and sitting members of Congress would be allowed to sell individual holdings within six months after enactment of the bill. Congressional membersalso would have the option of retaining investments while in office if those investments were transferred to a blind trust.
When the bill was introduced on March 3, Sen. Jeff Merkley, D-Ore., a co-sponsor of the Senate bill, along with Sens. Sherrod Brown, D-Ohio, and RaphaelWarnock, D-Ga., noted in a statement the “need to end the era in which members of Congress buy and sell individual stocks for personal gain. This practice isdeeply corrupt.
“First, it biases the viewpoint of members when working on legislation relatedto a stock they own. Second, members trade on information they hear thatthe general public doesn’t. And that’s just wrong,” according to the statement.—Bernice Napach
“The idea of a wealth tax ‘may
sound fair to those who are not
anywhere near that wealthy …
but it would be almost impossible
to put into place and enforce and
to do it each year. There is just
no way this kind of tax can be