Adina Khan, CPA and Christopher Rullo, CPA
1.20.20 | Client Alert
The wealth tax proposals of Democrats Bernie Sanders of Vermont and Elizabeth Warren of Massachusetts are among the more contentious issues of the heated race for the 2020 presidential nomination. Each candidate has proposed an aggressive policy that would change how the net worth of the top 0.1% U.S. households would be taxed.
For a detailed comparative chart on the Sanders/Warren proposals, including expected tax increases at various thresholds, click here.
Below is a summary of some of the ways that the proposals compare and differ.
- Over a period of 10 years, Sanders is seeking to raise $4.35 trillion, while Warren looks to raise $3.75 trillion.
- The annual net worth threshold at which taxpayers will begin to see increases in their taxes begins at $32.1 million under Sanders vs. $50.1 million under Warren’s proposal.
- Assets within net worth under both plans will include those placed in trust until the grantor’s death.
- Both candidates seek to modify how and when assets are appraised, with Warren advocating the use of cutting-edge valuation methods.
- In terms of IRS wealth tax audits, Sanders proposes a national wealth registry, while Warren would significantly increase the IRS enforcement budget.
- Both candidates propose a 40% exit tax for those who renounce citizenship to avoid taxes.
Questions: Contact Adina Khan at 516.806.3462 | firstname.lastname@example.org
Berdon LLP New York Accountants