Ultra-Millionaire Tax Act Proposes New Tax On Americans With The Most

The S&P 500 pulled back from its all-time highs last week on investor concerns over inflation and rising bond yields.

On Monday, Democratic Senator Elizabeth Warren introduced a new bill called the Ultra-Millionaire Tax Act. The legislation would implement a 2% annual wealth tax on Americans that have at least $50 million in wealth and a 3% tax on those with at least $1 billion in wealth.

Shares of Quicken Loans parent company Rocket Companies experienced extreme volatility after the stock became the latest target of Reddit’s WallStreetBets community. The group of retail traders triggered a temporary short squeeze in Rocket shares that sent the stock soaring from around $23 on Monday’s open to as high as $43 in intraday trading on Tuesday before the stock finished the week back under $27.

The S&P 500 dipped on Wednesday afternoon after President Joe Biden significantly reduced the number of Americans that will receive stimulus payments as part of the $1.9 trillion coronavirus relief package. Biden reduced the top earnings thresholds for receiving at least partial $1,400 stimulus payments from $100,000 to $80,000 for individuals and from $200,000 to $150,000 for joint filers.

On Thursday, the S&P 500 plummeted more than 2.5% after Federal Reserve Chair Jerome Powell said the U.S. economic reopening in 2021 could “create some upward pressure on prices.” Powell’s comments spooked investors concerned trillions of dollars in government stimulus measures will trigger hyperinflation, and yields on 10-year U.S. Treasury bonds jumped back above 1.5% for the first time in over a year.

NIO Comes Up Short

Shares of Chinese electric vehicle maker NIO tumbled more than 25% after the auto company reported fourth-quarter revenue growth that fell short of analyst expectations.

This week, investors will turn their attention to earnings reports from Dick’s Sporting Goods on Tuesday, United Natural Foods and Campbell Soup on Wednesday and JD.com on Thursday.

Analysts are now projecting 9.3% revenue growth for S&P 500 companies in 2021 following a 1% revenue decline in 2020, according to FactSet.

Economic Numbers

This week, investors will get more key economic updates on Wednesday when the U.S. Labor Department releases its Consumer Price Index reading for the month of February and on Thursday when the European Central Bank releases its latest interest rate decision and accompanying monetary policy statement.

Benzinga is a financial news and data company headquartered in Detroit.

This article originally appeared on Detroit Free Press: Ultra-Millionaire Tax Act proposes wealth tax on Americans with the most

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