The United States has proposed the "Ultra Millionaire Tax Act" which is aimed at reducing the wealth inequality that has further widened during the COVID-19 pandemic. The annual tax would be 2 percent on more than $50 million and 3 percent on over $1 billion, affecting the wealthiest one lakh American families or the top 0.5 percent, CNBC reported.

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As per the proposed tax, Amazon’s Jeff Bezos will have to pay $5.7 billion while Tesla’s Elon Musk owes $4.6 billion in taxes for 2020. Bill Gates and Mark Zuckerberg will have to pay $3.6 billion and $3 billion respectively, based on the calculations by the Institute for Policy Studies and Americans for Tax Fairness.

Gates has been vocal about having a fair tax system in the US to address the rising wealth inequality. In his blog on December 30, 2019, he wrote, “I'm for a tax system in which, if you have more money, you pay a higher percentage in taxes. And I think the rich should pay more than they currently do, and that includes Melinda and me.”

Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont are the senators who had proposed the tax. Warren said the tax would raise around $3 trillion over 10 years.

"We do understand the direction we've been going. This pandemic has created more billionaires. The people at the top are not barely hanging on by their fingernails,” Warren told CNBC.

Bezos and Musk would still be left with over $185 billion and $148 billion in net worth after the tax.

It is to be noted that the top three richest people in the world are from the US.

Bezos currently is the richest person in the world with a net worth of $177 billion, according to Bloomberg Billionaires Index as of March 8. Musk follows him with $157 billion. Gates is at number three with $136 billion. Zuckerberg is at number five with a net worth of $100 billion.

First Published:Mar 8, 2021 6:51 PM IST