Four Democratic Senators Urge Treasury Secretary Yellen to Take Action Against Tax Avoidance by Wealthy Individuals

Four Democratic senators are calling on Treasury Secretary Janet Yellen to take action against trusts and financial vehicles that allow the wealthiest individuals to avoid taxes. The letter, signed by Sens. Elizabeth Warren, Bernie Sanders, Chris Van Hollen, and Sheldon Whitehouse, outlines potential regulations that would make trusts less attractive as tax shelters for the 1%.

The issue of tax avoidance has been a source of contention for some time, with Gary Cohn, former President Donald Trump’s director of the National Economic Council, once quipping that “only morons pay the estate tax.” Ultrawealthy Americans have access to a variety of methods to avoid taxes, including trusts that allow them to pass down massive inheritances tax-free.

The senators’ call for action comes as Congress is making no progress on how to avert a debt ceiling crisis, and the recent collapses of some banks are deepening the stalemate. Silicon Valley Bank and Signature Bank have both recently failed, creating jitters in the financial sector and further entrenching the conflicting views between the parties.

The senators’ letter is a step towards addressing the issue of tax avoidance and ensuring that the wealthiest individuals pay their fair share. It remains to be seen whether the Treasury Secretary will take action on the proposed regulations.