Senator Elizabeth Warren has long been an advocate for the wealthiest Americans paying more in taxes to fund necessary programs in the country. Her frequent public mentions about the rich needing to pay their fair share of taxes have drawn curiosity about Warren’s own tax and income situation.
In particular, Warren has pointed the finger at Elon Musk. Currently, he's considered to be the richest person in the world at about $261 billion as of December 2021. She wants the ultra-rich, like Musk, to pay more in taxes and proposes a minimum corporate tax. So, does Warren pay taxes, and how much is her typical tax bill?
How much does Elizabeth Warren pay in taxes?
The Democratic Senator from Massachusetts does pay her federal income taxes each year. She has made her income and assets available (which is required of all members of Congress) but also her actual tax returns dating back to 2008. In 2019, Warren said, “No one should ever have to guess who their elected officials are working for.”
Warren’s 2018 tax returns indicated that she and her husband Bruce earned about $900,000, on which they paid over $200,000 in taxes. The breakdown that year was as follows:
About $325,000 in Warren’s book sales
$175,000 for Warren’s Senate salary
About $400,000 for husband Bruce’s income as a Harvard professor
Does Elizabeth Warren own stocks?
Senator Warren introduced legislation in 2018 that would bar members of Congress and White House staff from owning individual stocks. She said that mutual funds would qualify as a “conflict-free” investment alternative for legislators. The accounts would be managed by an independent agency, the Federal Retirement Thrift Investment Board.
Given her opposition to public servants holding individual stocks, it seems likely that Warren has a lot of her wealth invested in retirement account vehicles like mutual funds.
Elizabeth Warren and Elon Musk have clashed on Twitter.
Musk replied to that barb and tweeted, “And if you opened your eyes for 2 seconds, you would realize I will pay more taxes than any American in history this year.”
What's Elizabeth Warren’s wealth tax proposal?
Senator Warren made a new wealth tax proposal in May, which would tax wealth above $50 million at 2 percent. In addition, those with wealth above $1 billion would pay 3 percent on every dollar above that threshold. She claimed that the plan would raise $3.75 trillion over the next decade.
In a CNBC interview at the time, Warren reasoned said, “I think most people would rather be rich and pay 2 cents.”
Elizabeth Warren proposed a minimum corporate tax.
As of August 2021, her proposal would require corporations to pay 7 percent in taxes on earnings reported to investors above $100 million.