There are not 3.75 trillion reasons to love the Ultra-Millionaire Tax. In fact, any proposed “tax the rich scheme” would have minor impact on tax revenues or inequality. This conclusion comes from a new paper describing research conducted by Joseph Steinberg, a Professor of Economics with the University of Toronto, and his co-author Shahar Rotberg.

The research was inspired by an economic analysis of a popular taxation plan first put forward by Senator Elizabeth Warren’s during the Democratic Convention of 2016.

“The Ultra-Millionaire Tax taxes the wealth of the richest Americans. It applies only to households with a net worth of $50 million or more—roughly the wealthiest 75,000 households, or the top 0.1%,” Warren’s website explains. “Households would pay an annual 2% tax on every dollar of net worth above $50 million and a 6% tax on every dollar of net worth above $1 billion. Because wealth is so concentrated, this small tax on roughly 75,000 households will bring in $3.75 trillion in revenue over a ten-year period.” [Read more…]