There are ways in which a tax on the ultra-wealthy could nudge them toward crypto, but hiding assets is not one of them.
Levying a progressive tax on the ultra-wealthy has been a talking point long popular with many United States Democrats, yet such a policy would have been unimaginable under a Republican administration and a split Congress.Now that the Democratic Party is back in control of both the White House and Capitol Hill, the initiative is formally on the table: On March 1, a group of Democratic lawmakers led by Sen. Elizabeth Warren introduced legislation proposing an annual tax on the households and trusts worth more than $50 million, including the value of property such as real estate and stocks.As new bridges between traditional capital and the digital asset space emerge almost daily, highnet-worth individuals can move value to crypto with more ease than ever before. Can a prospective wealth tax, should it be codified in law, affect their willingness to do so?Warren’s planMarketed as The Ultra-Millionaire Tax, Senator Warren’s bill proposes a 2% annual tax on the net worth of any household between $50 million and $1 billion, and a 3% tax for those worth more than $1 billion. The framers contend that the burden will only fall on the wealthiest 100,000 households in the nation, or the top 0.05% of wealth distribution.The lawmakers argue that the initiative could bring in at least $3 trillion in federal revenue over 10 years — a pool of resources that could be directed to support underfunded areas …
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