Bernie Sanders unveils 'Tax on Extreme Wealth' plan

Presidential candidate Bernie Sanders has been a loud critic of the ultra wealthy. Under his newest plan, he is ensuring those in the highest income bracket pay what he sees as their fair share in taxes.

On Tuesday, Sanders released his “Tax on Extreme Wealth” proposal. The plan would place a 1% tax on the top 0.1% of American households. That translates to those who have a net worth above $32 million, who would pay a wealth tax of $5,000.

“At a time when millions of people are working 2 or 3 jobs to feed their families, the three wealthiest people in this country own more wealth than the bottom half of the American people,” Sanders said. “Enough is enough. We are going to take on the billionaire class, substantially reduce wealth inequality in America, and stop our democracy from turning into a corrupt oligarchy.”

The tax rate would increase depending on net worth — there would be a 2% tax on those worth between $50-250 million, 3% tax on those worth between $250-500 million, 4% for those between $500 million to $1 billion, 5% from $1-2.5 billion, 6% from $2.5-5 billion, 7% from $5 to $10 billion, and 8% tax on wealth over $10 billion. According to the plan, “these brackets are halved for singles.”

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A Bernie2020 campaign sign is help up in the crowd as Sanders co-chair Sen. Nina Turner, joined by local politicians and hospital workers protest the imminent closure of Hahnemann University Hospital at a rally outside the Center City facilities in Philadelphia, PA on July 11, 2019. (Photo by Bastiaan Slabbers/NurPhoto via Getty Images)
PELLA, IA - JULY 04: An attendee hold a sign for U.S. Senator and 2020 presidential candidate Bernie Sanders (I-VT) during the 4th of July parade on July 4, 2019 in Pella, Iowa. The 2020 Iowa Democratic caucuses will take place on Monday, February 3, 2020. (Photo by Joshua Lott/Getty Images)
PELLA, IA - JULY 04: U.S. Senator and 2020 presidential candidate v (I-VT) waves as he attends the 4th of July parade on July 4, 2019 in Pella, Iowa. The 2020 Iowa Democratic caucuses will take place on Monday, February 3, 2020. (Photo by Joshua Lott/Getty Images)
PELLA, IA - JULY 04: U.S. Senator and 2020 presidential candidate Bernie Sanders (I-VT) attends the 4th of July parade on July 4, 2019 in Pella, Iowa. The 2020 Iowa Democratic caucuses will take place on Monday, February 3, 2020. (Photo by Joshua Lott/Getty Images)
MIAMI, FLORIDA - JUNE 27: Democratic presidential candidate Sen. Bernie Sanders (I-VT) speaks to the media after the second night of the first Democratic presidential debate on June 27, 2019 in Miami, Florida. A field of 20 Democratic presidential candidates was split into two groups of 10 for the first debate of the 2020 election, taking place over two nights at Knight Concert Hall of the Adrienne Arsht Center for the Performing Arts of Miami-Dade County, hosted by NBC News, MSNBC, and Telemundo. (Photo by Cliff Hawkins/Getty Images)
Democratic presidential hopeful US Senator for Vermont Bernie Sanders speaks to the press in the Spin Room after participating in the second Democratic primary debate of the 2020 presidential campaign season hosted by NBC News at the Adrienne Arsht Center for the Performing Arts in Miami, Florida, June 27, 2019. (Photo by JIM WATSON / AFP) (Photo credit should read JIM WATSON/AFP/Getty Images)
Democratic presidential hopeful former US Senator for Vermont Bernie Sanders looks on during the second Democratic primary debate of the 2020 presidential campaign season hosted by NBC News at the Adrienne Arsht Center for the Performing Arts in Miami, Florida, June 27, 2019. (Photo by SAUL LOEB / AFP) (Photo credit should read SAUL LOEB/AFP/Getty Images)
Democratic presidential hopeful US Senator for Vermont Bernie Sanders speaks during the second Democratic primary debate of the 2020 presidential campaign season hosted by NBC News at the Adrienne Arsht Center for the Performing Arts in Miami, Florida, June 27, 2019. (Photo by SAUL LOEB / AFP) (Photo credit should read SAUL LOEB/AFP/Getty Images)
HOMESTEAD, USA - JUNE 27: Senator Bernie Sanders, an independent from Vermont and 2020 presidential candidate speaks to the media outside the Homestead Temporary Shelter for Unaccompanied Children a detention facility for incarcerated youths that have been detained by Homeland Security in Homestead, Florida, United States on June 27, 2019. (Photo by Eva Marie Uzcategui T./Anadolu Agency/Getty Images)
A supporter of Democratic presidential candidate and US Senator, Bernie Sanders, holds up a sign during a rally inside the gymnasium at Clinton College, a historically black college in Rock Hill, SC on June, 23 2019. - Many of the Democratic candidates running for president were in South Carolina over the weekend to make appearances at the Democratic Party Convention and win the hearts of black voters. (Photo by Logan Cyrus / AFP) (Photo credit should read LOGAN CYRUS/AFP/Getty Images)
Danny Glover (L), Hollywood actor and supporter of Democratic presidential candidate, Bernie Sanders, listens as Sanders gives a speech inside the gymnasium at Clinton College, a historically black college in Rock Hill, SC on June, 23 2019. Glover has been on the campaign trail opening for the Senator during his swing through South Carolina. - Many of the Democratic candidates running for president were in South Carolina over the weekend to make appearances at the Democratic Party Convention and win the hearts of black voters. (Photo by Logan Cyrus / AFP) (Photo credit should read LOGAN CYRUS/AFP/Getty Images)
Democratic Senator and presidential candidate, Bernie Sanders, greets supporters after a speech at a packed rally inside the gymnasium at Clinton College, a historically black college, before a rally in Rock Hill, SC on June, 23 2019. - Many of the Democratic candidates running for president were in South Carolina over the weekend to make appearances at the Democratic Party Convention and win the hearts of black voters. (Photo by Logan Cyrus / AFP) (Photo credit should read LOGAN CYRUS/AFP/Getty Images)
Democratic Senator and presidential candidate, Bernie Sanders, addresses the crowd at a packed rally inside the gymnasium at Clinton College, a historically black college, before a rally in Rock Hill, SC on June, 22 2019. - Many of the Democratic candidates running for president were in South Carolina over the weekend to make appearances at the Democratic Party Convention and win the hearts of black voters. (Photo by Logan Cyrus / AFP) (Photo credit should read LOGAN CYRUS/AFP/Getty Images)
PASADENA, CALIFORNIA, UNITED STATES - 2019/05/31: U.S. Senator and presidential candidate, Bernie Sanders, speaks at a campaign rally in Pasadena, California. The 2020 presidential hopeful spoke to supporters at the Pasadena Convention Center. This weekend Sanders will also attend the 2019 California Democratic Party State Convention in San Francisco. (Photo by Ronen Tivony/SOPA Images/LightRocket via Getty Images)
PASADENA, CALIFORNIA, UNITED STATES - 2019/05/31: Supporters of the Democratic presidential candidate Bernie Sanders are seen holding letters that spell Bernie during a campaign rally in Pasadena, California. The 2020 presidential hopeful spoke to supporters at the Pasadena Convention Center. This weekend Sanders will also attend the 2019 California Democratic Party State Convention in San Francisco. (Photo by Ronen Tivony/SOPA Images/LightRocket via Getty Images)
PASADENA, CA - MAY 31: Sen. Bernie Sanders appears at a campaign rally at the Pasadena Convention Center on May 31, 2019 in Pasadena, California. Sanders and three other candidates for the 2020 Democratic presidential nomination - Sen. Kamala Harris, Julian Castro and Gov. Jay Inslee - will field questions at the Immigrant Unity and Freedom Presidential Forum of 2019 nearby, following the rally. (Photo by David McNew/Getty Images)
PASADENA, CALIFORNIA, UNITED STATES - 2019/05/31: Supporters of the Democratic presidential candidate Bernie Sanders hold Bernie placards during a campaign rally in Pasadena, California. The 2020 presidential hopeful spoke to supporters at the Pasadena Convention Center. This weekend Sanders will also attend the 2019 California Democratic Party State Convention in San Francisco. (Photo by Ronen Tivony/SOPA Images/LightRocket via Getty Images)
MONTPELIER, VT - MAY 25: Democratic presidential candidate Sen. Bernie Sanders speaks during a rally in the capital of his home state of Vermont on May 25, 2019 in Montpelier, Vermont. This was the first Vermont rally of Sanders' 2020 campaign. (Photo by Scott Eisen/Getty Images)
SCHENLEY PLAZA, PITTSBURGH, PA, UNITED STATES - 2019/04/14: People holding Bernie signs during a Bernie Sanders rally campaign ahead of United States Presidential election. Democratic Presidential candidate Bernie Sanders rally in Pittsburgh, PA on the campaign trail for the bid in the 2020 election. (Photo by Aaron Jackendoff/SOPA Images/LightRocket via Getty Images)
SCHENLEY PLAZA, PITTSBURGH, PA, UNITED STATES - 2019/04/14: Bernie Sanders speaks to the crowd during his rally campaign ahead of United States Presidential election. Democratic Presidential candidate Bernie Sanders rally in Pittsburgh, PA on the campaign trail for the bid in the 2020 election. (Photo by Aaron Jackendoff/SOPA Images/LightRocket via Getty Images)
SCHENLEY PLAZA, PITTSBURGH, PA, UNITED STATES - 2019/04/14: Bernie Sanders speaks to the crowd during his rally campaign ahead of United States Presidential election. Democratic Presidential candidate Bernie Sanders rally in Pittsburgh, PA on the campaign trail for the bid in the 2020 election. (Photo by Aaron Jackendoff/SOPA Images/LightRocket via Getty Images)
SCHENLEY PLAZA, PITTSBURGH, PA, UNITED STATES - 2019/04/14: Bernie Sanders speaks to the crowd during his rally campaign ahead of United States Presidential election. Democratic Presidential candidate Bernie Sanders rally in Pittsburgh, PA on the campaign trail for the bid in the 2020 election. (Photo by Aaron Jackendoff/SOPA Images/LightRocket via Getty Images)
NEW YORK, NY - APRIL 5: Flanked by Rev. Al Sharpton (L) and Rev. W. Franklyn Richardson (R) look on as Democratic presidential candidate U.S. Sen. Bernie Sanders (I-VT) speaks at the National Action Network's annual convention, April 5, 2019 in New York City. A dozen 2020 Democratic presidential candidates are speaking at the organization's convention this week. Founded by Rev. Al Sharpton in 1991, the National Action Network is one of the most influential African American organizations dedicated to civil rights in America. (Photo by Drew Angerer/Getty Images)
NEW YORK, NEW YORK - APRIL 05: Democratic presidential candidate U.S. Sen. Bernie Sanders (I -VT) attends the National Action Network's annual convention on April 5, 2019 in New York City. A dozen 2020 Democratic presidential candidates will speak at the organization's convention this week. Founded by Rev. Al Sharpton in 1991, the National Action Network is one of the most influential African American organizations dedicated to civil rights in America. (Photo by Spencer Platt/Getty Images)
SAN FRANCISCO, CA - MARCH 24: Supporters of 2020 Democratic presidential candidate U.S. Sen. Bernie Sanders (I-VT) listen during a campaign rally at Great Meadow Park in Fort Mason on March 24, 2019 in San Francisco, California. Thousands are expected to attend the rally as Sanders continues his California swing in preparation for the early 2020 primaries (Photo by Stephen Lam/Getty Images)
SAN FRANCISCO, CA - MARCH 24: Volunteer Ena Silva wears a hat she decorated during a campaign rally for 2020 Democratic presidential candidate U.S. Sen. Bernie Sanders (I-VT) at Great Meadow Park in Fort Mason on March 24, 2019 in San Francisco, California. Thousands are expected to attend the rally as Sanders continues his California swing in preparation for the early 2020 primaries (Photo by Stephen Lam/Getty Images)
SAN FRANCISCO, CA - MARCH 24: Souvenir t-shirts are seen outside a campaign rally for 2020 Democratic presidential candidate U.S. Sen. Bernie Sanders (I-VT) at Great Meadow Park in Fort Mason on March 24, 2019 in San Francisco, California. Thousands are expected to attend the rally as Sanders continues his California swing in preparation for the early 2020 primaries (Photo by Stephen Lam/Getty Images)
SAN FRANCISCO, CA - MARCH 24: Judy Canham holds a doll of 2020 Democratic presidential candidate U.S. Sen. Bernie Sanders (I-VT) during a campaign rally at Great Meadow Park in Fort Mason on March 24, 2019 in San Francisco, California. Thousands are expected to attend the rally as Sanders continues his California swing in preparation for the early 2020 primaries (Photo by Stephen Lam/Getty Images)
SAN FRANCISCO, CA - MARCH 24: Democratic presidential candidate U.S. Sen. Bernie Sanders (I-VT) speaks during a campaign rally at the Great Meadow Park in Fort Mason on March 24, 2019 in San Francisco, California. Sanders, who is so far the top Democratic candidate in the race, is making the rounds in California which is considered a crucial 'first five' primary state by the Sanders campaign. California will hold on early primary on March 3, 2020. (Photo by Stephen Lam/Getty Images)
LOS ANGELES, CA - MARCH 20: Democratic Presidential Candidate Sen. Bernie Sanders (I-VT) gives a speech during a single-day strike of University of California research and technical workers on the UCLA Westwood campus March 20, 2019 in Los Angeles, California. Union leaders and students from UCLA also participated in the activities. Similar demonstrations were held at UC medical facilities across the state. Sen. Sanders formally announced in February that he is running for President in the 2020 campaign. (Photo bu Genaro Molina/Los Angeles Times via Getty Images)
NORTH CHARLESTON, SC - MARCH 14: 2020 Democratic presidential candidate U.S. Sen. Bernie Sanders (I-VT) addresses the crowd at the Royal Family Life Center on March 14, 2019 in North Charleston, South Carolina. Sanders received 26 percent of the South Carolina Democratic vote in the 2020 race, eventually losing the nomination to Hillary Clinton. (Photo by Sean Rayford/Getty Images)
NORTH CHARLESTON, SC - MARCH 14: 2020 Democratic presidential candidate U.S. Sen. Bernie Sanders (I-VT) greets the crowd at the Royal family Life Center on March 14, 2019 in North Charleston, South Carolina. Sanders received 26 percent of the South Carolina Democratic vote in the 2020 race, eventually losing the nomination to Hillary Clinton. (Photo by Sean Rayford/Getty Images)
CONCORD, NH - MARCH 10: Supporters of 2020 Democratic presidential candidate U.S. Sen. Bernie Sanders (I-VT) during a campaign event on March 10, 2019 in Concord, New Hampshire. Sanders who is so far the top Democratic candidate in the race is making the rounds in Iowa and New Hampshire. (Photo by Scott Eisen/Getty Images)
DES MOINES, IA - MARCH 09: 2020 Democratic presidential candidate U.S. Sen. Bernie Sanders (I-VT) greets potential supporters at a rally at the Iowa State Fairgrounds on March 9, 2019 in Des Moines, Iowa. Sanders who is so far the top Democratic candidate in the race is making the rounds in Iowa and New Hampshire. (Photo by Steve Pope/Getty Images)
Senator Bernie Sanders launched his 2020 presidential campaign at his alma mater, Brooklyn College, in his hometown Brooklyn, New York, US, on 2 March 2019. (Photo by Selcuk Acar/NurPhoto via Getty Images)
Bernie Sanders, Independent US Senator from Vermont speaks on stage as he kicks-off his campaign for the 2020 U.S. Presidential Elections on a Democratic ticket at a rally at Brooklyn College, in Brooklyn, NY on March 2, 2019. (Photo by Bastiaan Slabbers/NurPhoto via Getty Images)
Bernie Sanders, Independent US Senator from Vermont speaks on stage as he kicks-off his campaign for the 2020 U.S. Presidential Elections on a Democratic ticket at a rally at Brooklyn College, in Brooklyn, NY on March 2, 2019. (Photo by Bastiaan Slabbers/NurPhoto via Getty Images)
NEW YORK, NY - MARCH 02: Bernie Sanders pins are on display during his first presidential campaign rally at Brooklyn College on March 02, 2019 in the Brooklyn, New York. (Photo by Kena Betancur/VIEWpress/Corbis via Getty Images)
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Sanders claims that “the wealth of billionaires would be cut in half over 15 years which would substantially break up the concentration of wealth and power of this small privileged class.”

The revenue generated from this tax on the wealthy would go towards other plans of Sanders, including Medicare for All, universal child care, and affordable housing.

There is growing support for taxing the wealthy. A poll from Politico/Morning Consult found that 76% of registered voters think wealthy Americans should pay more taxes. And, a Fox News survey found that 70% of Americans, including 54% of Americans, are in support of raising taxes on those who earn more than $10 million.

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Miley Cyrus

(Photo by Cindy Ord/Getty Images for SiriusXM)

Danny DeVito 

(Photo by Ernesto Distefano/Getty Images for RBC)

Danny Glover

(Photo by Zach Gibson/Getty Images)

John Mulaney

(Photo by Bruce Glikas/FilmMagic)

Matt Dillon

(Photo by Daniele Venturelli/Daniele Venturelli/Getty Images )

Emily Ratajkowski 

(Photo by Sean Zanni/Patrick McMullan via Getty Images)

Shailene Woodley 

(Photo by George Pimentel/Getty Images for HUGO BOSS)

Cardi B

(Photo by Arik McArthur/WireImage)

Mark Ruffalo 

Susan Sarandon

(Photo by Isaiah Trickey/FilmMagic)

Justin Long

(Photo by Craig Barritt/Getty Images for Labyrinth Theater Company)

Rob Delaney

Vic Mensa 

(Photo by Yuchen Liao/Getty Images)

Jason Mraz

(Photo by Michael Tullberg/Getty Images)

Rapper Lil Yachty

(Photo by Prince Williams/Wireimage)

Norah Jones

(Photo by Roberta Parkin/Getty Images)

Brandi Carlile 

(Photo by Erika Goldring/Getty Images for Americana Music Association)

Dave Bautista
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University of California, Berkeley economists Gabriel Zucman and Emanuel Saez, who have written extensively about the effects of wealth taxes, analyzed the Sanders proposal and estimates that this would raise $4.35 trillion over the next decade.

Zucman and Saez’s $4.35 trillion estimate is higher than the two projected for Sen. Elizabeth Warren’s wealth tax plan released earlier this year. Under her tax proposal, there would be a 2% wealth tax on individuals with a net worth over $50 million and 3% tax on those over $1 billion.

“A progressive wealth tax is the most direct policy tool to curb the growing concentration of wealth in the United States,” the two said in a joint letter. “It can also restore tax progressivity at the very top of the wealth distribution and raise sorely needed tax revenue to fund the public good. Senator Sanders’ very progressive wealth tax on the top 0.1% wealthiest Americans is a crucial step in this direction.”

Adriana is an associate editor for Yahoo Finance. Follow her on Twitter @adrianambells.

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