Second, three tax proposals have been offered to raise more revenue from the rich. Congresswoman Alexandria Ocasio-Cortez has suggested raising the tax on incomes above $10 million from the current 37 percent to 60 or 70 percent. This would return upper-income tax rates to the level that prevailed during the 1970s. In the regime of the 1970s, many deductions and exemptions existed which do not exist today. The effective tax rate on high incomes under the Ocasio-Cortez proposal would be much higher than the one of the 1970s. However, the top rate in the 1970s applied to the contemporary equivalent of $800,000.
Senator Elizabeth Warren has proposed a “wealth tax,” not merely an income tax. People with a net worth between $50 million and $1 billion would pay 2 percent per year; people worth more than $1 billion would pay 3 percent per year. According to the calculations underlying Senator Warren’s proposal, this tax would generate $2.75 trillion over ten years.
The Warren proposal may not be constitutional. The 16th Amendment to the Constitution created a tax on income, not a tax on all assets. Apparently, the courts have held that taxes on estates and gifts are excise taxes on the transfer of assets, rather than a tax on the assets themselves. The tax also might be a logistical nightmare to apply.
Senator Bernie Sanders has proposed revising the estate tax. Until 2009, the tax applied to estates of more than $3.5 million. A 2017 tax change raised the threshold for individuals to about $11 million and the threshold for couples to about $22 million, with a standard tax rate of 40 percent. Senator Sanders would return to the 2009 level of $3.5 million. In addition, he replaces a single tax rate with multiple rates. From $3.5 million to $10 million, the rate would be 45 percent; on estates of $1 billion or more, the rate would be 77 percent.
 Paul Sullivan, “Taxing the Rich Sounds Easy. But It’s Not,” NYT, 2 February 2019; Sydney Ember, “Sanders Unveils a Plan To Increase Estate Taxes,” NYT, 1 February 2019.
 Senator Bernie Sanders also supports the idea of a wealth tax, if not necessarily Senator Warren’s version of such a tax.
 Apparently, there are 39,735 people worth between $50 million and $1 billion in the United States today.
 Apparently, there are 680 billionaires in the United States today.