According to a summary of the bill released by the Patriotic Millionaires—an advocacy group that helped craft the measure—the wealth tax would have four brackets:
- 2% for all wealth between 1,000 and 10,000 times median household wealth;
- 4% for all wealth between 10,000 and 100,000 times median household wealth;
- 6% for all wealth between 100,000 and 1,000,000 times median household wealth; and
- 8% for all wealth over 1,000,000 times median household wealth;
"In the unlikely event median household wealth fell below $50,000 from its current level of about $120,000, the thresholds would be fixed at $50 million, $500 million, $5 billion, and $50 billion respectively.”
The legislation would also require at least a 30% IRS audit rate on households affected by the new wealth tax.
Next year, late summer.
My understanding is that this would be x% of your total wealth, which is much more reasonable.
So you would pay an extra 2% of your total worth every year. So at a billion that’s 20 million, at 980 million 19 million and change, etc.
The numbers could be much higher, but this is a lot of funds. It also would take several generations for the inheritance to drop below “you’ll never spend this” to just “you can live on the interest”. Even with zero interest on their investments (which is absurd - so really this would more be a source of funds than anything). At least it would be a starting point
Isn’t the issue that they are currently hiding and obfuscating their income? Increasing the percentage is a great idea and all but 1% or 8% of zero is still zero.
It literally says “all wealth” and doesn’t talk about income at all.
This is exactly the kind of tax we need. I think its a very interesting idea to tie it to median wealth, though using household as opposed to individual wealth I’m not sold on.
The legislation would also require at least a 30% IRS audit rate on households affected by the new wealth tax, according to the summary.
I don’t understand what this statement says. The it’s has to pick 30% of all households that make more than a thousand times the medium income? Is that lower than standard or higher? Why 30% and not 100%?
since they took the effort to include it in the proposal, I would assume it is significantly higher. Where I live the standard often varies from state so state, because some states use a low enforcement rate to attract buissnesses (“as in yeah, our federal taxes aren’t cheaper here, but we if you cheat it’s not like we are gonna catch you…”).
I assume not a 100% because that would be a herculean effort and at a certain point if your chances of getting caught are high enough -and there are significant fines- you won’t need 100% because the risk is high enough to make most people not cheat out of fear of getting caught.
Wealth taxes are super easy to avoid, so I’d much rather see something like cap gains+“luxury” sales/income taxes and such, but it’s a step in the right direction
Now raise taxes on everyone making over 100k and we’re really cooking with gas
But income tax on paper is already higher for the $100k tax bracket than what the ultra rich pay. The ultra rich do everything in their power to not have an “income”. Hence why there’s this effort of taxing wealth instead.
The cap gains tax that the richest people in the world never end up paying?
From 2014-2018 Warren Buffet alone grew his personal wealth by 24.3B, reported 125M in income (0.51% of wealth), and paid 23.7M in taxes (0.1% of wealth). Over 4 years, this man paid taxes on a tenth of a percent of his income. Similar tax numbers under 5% apply for other billionaires.
The ultra rich never pay capital gains tax, loopholes allow them to have their income in portfolios, which isn’t taxed. Capital gains is only for realized gains. When your portfolio is worth billions, you don’t need to sell it to have spending money, you can take a loan against the value of portfolio.
Capital gains tax only affects those who don’t have a bank’s worth of money in their portfolio.
$100k aint that much and those people already have a heafty tax burden. Plus luxury taxes are easily avoided when yachts and planes are purchased in the Bahamas. What we need are 50% taxes on the money they borrow against their assets. Want to buy another mansion? Cool 50% tax on the money Goldman Sachs lends you against your Amazon stock. If I have to pay a tax to borrow against my 401k so should these assholes.
$100k is 150% of median household income, and I’m talking about individual income. It is the boundary between 3rd and 4th quintiles of household income.
People are not overtaxed. They are dramatically undertaxed. I say this as a person earning over $100k - it’s not some weird snub. It’s just correct
https://dqydj.com/average-median-top-household-income-percentiles/
Rich people do pay taxes on money removed early from 401(k)s, which is why they don’t do that.
I do strongly support raising taxes on money borrowed against assets over $150k or so
$100k is a bad metric because somebody making $100k in the Bay Are or New York is basically in poverty. I make over $100k and I’m not well off at all. Not even close. And I’m not bad with money, have zero debt, save 15% in the 401k no kids and still things are tight.
Warren Buffett doesn’t pay income tax because he doesn’t earn income.
The billionaires don’t have a billion in cash, they don’t earn a billion dollars a year. They hold assets worth that much.
Taxing wealth is the only way to combat the wealth gap.
Good thing the people who have to vote on it aren’t impacted by these brackets at all!
