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How two new $1,400 stimulus checks could be sent out to struggling Americans if small wealth tax is introduced

The US Sun
The US Sun
 2022-01-22

A SMALL wealth tax on America's multi-millionaires and billionaires could raise more than $900 billion a year which could fund two more $1,400 stimulus checks, reports say.

The analysis noted that during the Covid-19 pandemic the wealth of the world's richest has risen dramatically while inequality was widening.

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A small stealth tax could pay for more stimulus checks, a study found Credit: Getty

The wealth of American billionaires has increased by $2 trillion since the start of the pandemic while many households have been left struggling to make ends meet.

But a study published by Fight Inequality Alliance, Institute for Policy Studies, Oxfam and a group called Patriotic Millionaires, has concluded there is a solution.

A wealth tax, with rates at 2 percent for those with more than $5 million rising to 5 percent for billionaires, could raise $928.39 billion a year, the report calculated.

A two percent rate on wealth over $5 million rising to 10 percent for those with more than $1 billion, would raise $1.34 trillion.

The report said an extra $928.39 billion could raise the government's health budget by a third.

It could also wipe out half of households' out-of-pocket health costs.

The American Rescue Plan last year included about $400 billion that was used for $1,400 direct payments to most Americans.

But with many American families still struggling financially during the ongoing pandemic.

The sum of $928.39 billion in tax revenue could cover the cost of two more $1,400 stimulus checks.

The report also found that a wealth tax on the world's multi-millionaires and billionaires could raise $2.52 trillion annually.

This would be enough to lift 2.3 billion people out of poverty, make enough vaccines for the entire world and guarantee healthcare and social protection for people in lower-income countries.

It comes after Patriotic Millionaires, a group of more than 100 of the world's richest people, urged governments to tax them more.

In an open letter to coincide with the World Economic Forum's "virtual Davos”, they said: "As millionaires, we know that the current tax system is not fair.”

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