Why don’t we have a maximum wage? Asking that question is another way of asking why some people can rake in millions while others struggle to earn enough
Billionaires don’t have taxable income because they’ve successfully lobbied for carve outs that exempt them from taxation.
That’s what makes a wealth tax impractical. How do you pass it through a Congress that’s been wholely co-opted by a billionaire friendly caucus?
Chuck Schumer, the senior senator from Wall Street, isn’t going to author a wealth tax. Kamala Harris, the former Senator from Silicon Valley isn’t going to sign it. And the SCOTUS majority that’s on the Harlan Crow payroll isn’t going to uphold it.
Many also don’t truly “pay” for things. They leverage debt against their assets, essentially like a fancy credit card that says “I own MegaCorp, you know I’m good for it, just send the bills to this wealth management firm”.
So it’s not out of the realms of possibility to say that a billionaire is actually spending very little money, ever. What they have is essentially gifts from whoever manages their assets, and that company just skims whatever things “cost”.
IMO taxing wealth is what’s needed, but it needs to be framed in a way that makes a billionaire want to invest in their country through high taxes. Make it a privilege that is praised, and ostracise those business that excuse themselves from contributing.
When you have billions in shares, you can use that as collateral to borrow money from the bank, and then you just spend that money. That’s not “income” so it isn’t taxed.
What’s needed is a 90% tax on people reporting high incomes as a start. But, then you need to close loopholes. The carried interest loophole for a start, which would nail most of the hedge fund crowd. Then, tax unrealized gains when they’re in the tens of millions range. Then prevent billionaires from handing billions to their children tax free by preventing the “stepping up” of capital gains for their heirs.
Just tax any income above $10,000,000 per year at 90%. There really isn’t a need for more than that.
Billionaires have very little taxable income. We need a wealth tax.
Billionaires don’t have taxable income because they’ve successfully lobbied for carve outs that exempt them from taxation.
That’s what makes a wealth tax impractical. How do you pass it through a Congress that’s been wholely co-opted by a billionaire friendly caucus?
Chuck Schumer, the senior senator from Wall Street, isn’t going to author a wealth tax. Kamala Harris, the former Senator from Silicon Valley isn’t going to sign it. And the SCOTUS majority that’s on the Harlan Crow payroll isn’t going to uphold it.
Many also don’t truly “pay” for things. They leverage debt against their assets, essentially like a fancy credit card that says “I own MegaCorp, you know I’m good for it, just send the bills to this wealth management firm”.
So it’s not out of the realms of possibility to say that a billionaire is actually spending very little money, ever. What they have is essentially gifts from whoever manages their assets, and that company just skims whatever things “cost”.
IMO taxing wealth is what’s needed, but it needs to be framed in a way that makes a billionaire want to invest in their country through high taxes. Make it a privilege that is praised, and ostracise those business that excuse themselves from contributing.
That wouldn’t catch the people who are the real problem, billionaires, who report something like $1 per year in income.
When you have billions in shares, you can use that as collateral to borrow money from the bank, and then you just spend that money. That’s not “income” so it isn’t taxed.
What’s needed is a 90% tax on people reporting high incomes as a start. But, then you need to close loopholes. The carried interest loophole for a start, which would nail most of the hedge fund crowd. Then, tax unrealized gains when they’re in the tens of millions range. Then prevent billionaires from handing billions to their children tax free by preventing the “stepping up” of capital gains for their heirs.