Democrat proposes one-time 5% 'patriot tax' on Americans making more than $100M - where Jeff Bezos would have to pay $9.7B, Elon Musk $7.7B and Mark Zuckerberg $6.3B
Daily Mail
June 15, 2021
Top row: Jeff Bezos (Amazon), Elon Musk (Tesla). Bill Gates (Microsoft)
Bottom row: Mark Zuckerberg (Facebook), Larry Page (Google), Warren Buffet (Berkshire-Hathaway)
The very richest Americans could be hit with bills for billions of dollars under plans being developed for a wealth tax by Democratic Rep. Tom Suozzi, it emerged on Monday, which would see Amazon founder Jeff Bezos face paying almost ten billion dollars on his enormous wealth.
Suozzi, who sits on the tax-writing House Ways and Means Committee, is drafting what he called a 'patriot tax.'
It would impose one-time tax of 2.5% on wealth above $50 million and a 5% surcharge above $100 million.
At that rate, Bezos, the country's wealthiest person, would face a payment of almost ten billion dollars on his wealth of about $195 billion.
That would force him to sell a chunk of his Amazon shares or other investments in order to generate the cash needed, although the proposal would allow him five years to pay off the bill.
The proposal comes amid growing pressure to develop new ways of ensuring billionaires pay their fare share after a report highlighted how clever accounting means they often pay federal income tax at lower rates than ordinary working families.
Suozzi said his plan reflected how many wealthy Americans did well during the coronavirus crisis.
Paying a one-time tax would be 'a way to help your country to build back better' after the pandemic, he added.
'We all know that people who are wealthy did very well during the pandemic and people that were low-income people did not do well,' he told The Hill.
Suozzi has yet to introduce any legislation based on his idea and his proposal would undoubtedly face stiff opposition from Republicans and moderate Democrats.
But it shows how Democrats homing in on ways to generate more revenues to finance ambitious spending plans are considering a one-time wealth tax to ensure the richest Americans pay more.
Suozzi's office said the plan would raise about $450 billion.
The proposal would mean Elon Musk, founder of Tesla, whose fortune is estimated by Forbes to stand at $153.7 billion would pay $7.69 billion.
Democrats have frequently proposed taxes on wealth - rather than income - as a way of ironing out imbalances in society.
Sen. Elizabeth Warren proposed a version during the 2020 election but President Biden has steered away from the idea in favor of raising capital gains and income rates for big earner
But arguments for a wealth tax received a major boost last week with a report by ProPublica that demonstrated how America's wealthiest people are able to legally reduce their income tax bills.
Bezos's income tax bill was zero in 2007 and 2011, according to the non-profit investigative journalism organization.
Tesla founder Elon Musk’s also paid no income tax 2018 while financier George Soros went three years in a row without paying any federal income tax.
5 comments:
A flat tax of 15% on every tax payer. No deductions. A wealth tax is Socialism.
No one needs an AR-15 either. What does that have to do with anything?
What does that have to do with anything? Call it socialism if you like, but it is morally wrong and just plain unfair for billionaires like Bezos, Musk and Gates not to have to pay any income tax while less fortunate Americans have to pay a tax on their income.
Attempting to reduce inequality via redistributive taxation is likely to fail because the global elite can easily hide their money in tax havens. Insofar as increased taxation does hit the rich, it will deter wealth creation, so we all end up poorer.
I grant you it is morally reprehensible. That does not mean it is illegal. I am not sure I want to go there because I am not sure I trust THE FUCKING GOVERNMENT to decide what is and what is not morally reprehensible. I will stick with legal and illegal.
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