In 1999, Trump supported a wealth tax more severe than anything Elizabeth Warren is proposing

Bill Bostock
Donald Trump, 1999

Reuters


  • In November 1999, Donald Trump proposed a wealth tax far more severe than the "Ultra Millionaire Tax" now being proposed by the Democratic presidential hopeful Elizabeth Warren, who the president has called "Uber Left."
  • Trump had said a one-off 14.25% tax on fortunes over $10 million would eliminate US national debt, then $5.66 trillion. Americans under the threshold would have been given tax breaks, Trump said.
  • "It is a win-win for the American people, an idea no conventional politician would have the guts to put forward," Trump, who was considering running in the 2000 presidential election, said at the time.
  • Warren's tax would see households pay a 2% annual tax on wealth between $50 million and $1 billion and a 3% annual tax on wealth above $1 billion.
  • Warren says her plan will bring in $2.75 trillion in revenue from 75,000 households over a 10-year period.
  • Visit Business Insider's homepage for more stories.

In November 1999, Donald Trump proposed a wealth tax far more severe than the "Ultra Millionaire Tax" proposed by the Democratic presidential hopeful Elizabeth Warren, who the president has called "Uber Left."

Trump proposed a one-off 14.25% tax on parts of households' net worth exceeding $10 million. Trump claimed it would eliminate the national debt, then $5.66 trillion, CNN reported at the time.

For example, Amazon's founder, Jeff Bezos, worth $110 billion today, would pay a one-off tax of $15.7 billion.

The Associated Press resurfaced Trump's ambitious tax proposal in a report Tuesday.

"By my calculations, 1% of Americans, who control 90% of the wealth in this country, would be affected by my plan," Trump, at the time mulling a run for president with the Reform Party, said.

Donald Trump Elizabeth Warren

Scott Olson / Getty Images, Alex Wong / Getty Imges

As a bonus from the one-off tax, Trump said, "the other 99% of the people would get deep reductions in their federal income taxes."

Several 2020 Democratic Party hopefuls have proposed new taxes on the rich, which focus on taxing total accrued wealth instead of focusing on annual income.

Read more: Wealth-tax explainer: Why Bernie Sanders, Elizabeth Warren and billionaires like George Soros are calling for a specialized tax on the ultra-wealthy

Warren's Ultra-Millionaire Tax would see households pay a 2% tax annually on net worth between $50 million and $1 billion and 3% a year on wealth of more than $1 billion.

Warren, who Trump called "Uber Left" in a recent tweet, says her plan will bring in $2.75 trillion in revenue from 75,000 households over 10 years.

Sen. Bernie Sanders, another 2020 Democratic presidential candidate, has proposed a wealth tax that is even more aggressive than Warren's, Business Insider's Joseph Zeballos-Roig previously reported.

"It would affect more households, levy a higher marginal tax rate, and ultimately bring in more money for government coffers to help pay for some of his ambitious proposals, like 'Medicare for All,' as well as fund other social programs," Zeballos-Roig reported.

bernie sanders

Joshua Lott/Getty Images

Trump said of his proposal in a statement in 1999: "Personally this plan would cost me hundreds of millions of dollars, but in all honesty, it's worth it."

"It is a win-win for the American people, an idea no conventional politician would have the guts to put forward."

Despite never coming to fruition, Trump's proposal was used for the basis of a tax plan that Democratic Rep. Juan Vargas put forward in April 2017 and mockingly named the Donald J. Trump Wealth Tax Act of 2017.

NOW WATCH: 7 takeaways from former special counsel Robert Mueller's Russia investigation, ahead of his congressional hearings