'The one per cent must pay their fair share': Democratic Representative Ilhan Omar calls for tax on the wealthy of 'up to NINETY PER CENT'
- Omar said taxes had been as high as 90 per cent before and could be once more
- It comes after freshman congresswoman Cortez called for a 70 per cent tax
- The tax reforms being proposed will fund several radical new policy initiatives
Democratic Rep. Ilhan Omar has called for an income tax of up to 90 per cent on America's multimillionaires.
Speaking to Yahoo News, Omar argued that tax rates of previous years had risen to the 90 per cent mark for top earners as she doubled down on fellow freshman congresswoman Alexandria Ocasio-Cortez's calls for a 70 per cent rate.
'There are a few things that we can do,' Rep. Omar - the first Somali-American congresswoman - said.
'One of them, is that we can increase the taxes that people are paying who are the extremely wealthy in our communities. So, 70 percent, 80 percent, we've had it as high as 90 percent. So, that's a place we can start.'
She and Ocasio-Cortez are part a radical grouping of freshman Democratic Congress members who have used social media stardom to leverage a powerful position within their caucus.
Minnesota Democrat Ilhan Omar said in an interview with Yahoo News taxes should be as high as 90 per cent for America's millionaires
Her calls for tax reform echoed the sentiment of fellow freshman congresswoman Alexandria Ocasio Cortez (left), pictured with Omar earlier this month
'The one percent must pay their fair share,' Omar said in the interview - echoing a talking point used this week by both Elizabeth Warren and Bernie Sanders, the two senators running for the White House from the ultra-liberal Democratic wing.
Omar claimed her radical tax plan would act as a catalyst for programs like Medicare for All and the Green New Deal being proposed by Ocasio-Cortez.
Ocasio-Cortez called for zero carbon emissions within 12 years, in an interview with '60 Minutes' on her first day as a member of Congress.
Omar also said she wants to slash the national defense budget in order to pay for the sweeping policy changes.
'I'm also one that really looks at the defense budget that we have, Rep. Omar said.
'That has increased nearly 50% since 9/11. And so, most of the money that we have in there is much more than with we spend on education, on healthcare.'
Omar proposed the radical tax reforms as a way of funding other policy initiatives such as edicare for All and the Green New Deal
After Ocasio-Cortez proposed the tax increase earlier this month, President Trump said the US would become like Venezuela under her plans
In 1960, before the Kennedy tax cuts, the top rate was 91 per cent for those earning more than $200,000. According to the Tax Policy Center, the top 1 per cent earned 9 per cent of all income at that time, compared to 20 per cent in 2008.
'You look at our tax rates back in the '60s and when you have a progressive tax rate system your tax rate, you know, let's say, from zero to $75,000 may be ten percent or 15 per cent,' she said, in an interview with 60 Minutes earlier this month.
'But once you get to, like, the tippy tops – on your 10 millionth dollar – sometimes you see tax rates as high as 60 or 70 percent,' she said.
'That doesn't mean all $10 million are taxed at an extremely high rate, but it means that as you climb up this ladder you should be contributing more.
'I think that it only has ever been radicals that have changed this country. Abraham Lincoln made the radical decision to sign the Emancipation Proclamation.
'Franklin Delano Roosevelt made the radical decision to embark on establishing programs like Social Security. That is radical,' she said.
President Trump took a swipe at Ocasio-Cortez immediately after she proposed the tax hike, saying a 70 per cent rate would bring the turmoil of Venezuela to the US.
'We're looking at Venezuela, it's a very sad situation,' Trump told reporters.
'That was the richest state in all of that area, that's a big beautiful area, and by far the richest - and now it's one of the poorest places in the world. That's what socialism gets you, when they want to raise your taxes to 70 percent.'
DEMOCRATS BACKING REDISTRIBUTION: BIG NAMES BACKING 'SOCIALIST' POLICIES
A series of big-name Democrats have endorsed ultra-progressive policies in recent weeks including:
ALEXANDRIA OCASIO-CORTEZ
The freshman Congresswoman from New York backs a 70 per cent tax rate on income over $10 million.
She did not fill in a detailed plan but suggested that the first $75,000 of income would be taxed at ten to 15 per cent, and that income over $10 million would attract 'rates as high as 60 to 70 per cent.'
The marginal scheme was attacked by Republicans but many characterized it as meaning someone earning more than $10 million would pay over 70 per cent of all their income - an error which Ocasio-Cortez seized on.
In fact it would mean that if someone earning $20 in a year million was taxed under the Ocasio-Cortez scheme, they would pay the lower rates of tax on their first $10 million, then 70 per cent on the next.
ELIZABETH WARREN
The Massachusetts senator and White House hopeful has proposed a 'wealth tax' on households with net worth of more than $50 million.
Her plan would see worth between $50 million and $1 billion taxed at 2 per cent each year. Households worth above $1 billion would be taxed at 3 per cent on the amount above $1 billion.
So if a household was worth $2 billion, they would pay a 2 per cent levy on the first $1 billion and a 3 per cent levy on the second - a total of $50 million a year.
BERNIE SANDERS
The Vermont independent who is running for the White House wants a dramatic expansion of the inheritance tax - the opposite of current Republican intentions, which are to abolish it entirely.
Sanders' scheme would start inheritance tax at estates worth $3.5 million, compared to the current limit of $11 million.
The rates would be:
- 45% on estate $3.5 million to $10m
- 50% tax on estate values $10m to $50m
- 55% tax values over $50m to $1 billion
- 77% tax over $1 billion
The rates would be marginal so a $1.5 billion estate would attract taxation of 45% the first $6.5m; 50% on the next $40 million; 55% on the next $950 million; and 77% on the final $500 million.
The total bill would be $930.425 million.
