Biden decides to shelve Warren’s wealth tax

President Joe Biden will not call for a wealth tax to help pay for his multitrillion-dollar Build Back Better initiative, according to multiple people familiar with the White House’s thinking. In doing so, he will sidestep a proposal that progressive Democrats, led by Sen. Elizabeth Warren (D-Mass.), say would raise trillions of dollars in revenue and narrow income inequality…

As a presidential candidate, Biden shied away from a full embrace of the wealth tax, which Warren popularized on the trail and has since introduced in Congress. The policy calls for a 2 percent annual tax on households with a net worth above $50 million, which would rise to 3 percent for those with a net worth above $1 billion.

The Biden White House had not outright rejected the idea — at least not publicly — and Treasury Secretary Janet Yellen said earlier this month the administration was undecided on whether to pursue it. That fueled optimism among supporters that some form of a wealth tax would ultimately be used to help pay for Democratic priorities like infrastructure, clean energy, expanded broadband, and hospital and school repairs.