US Billionaires Call for Higher Taxes, but Proposed 'Millionaires Tax' May Not Achieve Desired Outcome
Warren Buffett and Jamie Dimon advocate for increased taxes on the wealthy, while Congressional Republicans consider a 'millionaires tax' to address federal deficit
Warren Buffett and Jamie Dimon, CEOs of Berkshire Hathaway and JP Morgan Chase, have expressed support for raising taxes on the rich.
This stance has been echoed by other prominent billionaires, who argue that increasing taxes on high earners is necessary to address the growing federal deficit.
Congressional Republicans are reportedly considering a 'millionaires tax' to help pay for tax breaks on tips, overtime, and Social Security benefits, as well as the extension of provisions in the 2017 Tax Cuts and Jobs Act.
However, it is unlikely that this proposal would significantly impact billionaires like Buffett, Dimon, Elon Musk, and Jeff Bezos, who primarily accumulate wealth through investment income rather than wages and salaries.
The ultra-wealthy often utilize legal strategies to minimize their tax liability, with some individuals, such as Bezos and Musk, having paid little to no federal income tax in certain years despite being multi-billionaires.
For instance, Bezos did not pay federal income tax from 2007 to 2011, while Musk achieved the same feat in 2018. The issue of tax inequality has been highlighted by Buffett himself, who has noted that he was subject to a lower tax rate than his secretary, Debbie Bosanek.
In response to this disparity, President Barack Obama proposed the 'Buffett rule' in 2011, which aimed to increase the effective tax rate on millionaires to 30% by eliminating certain tax breaks and subsidies.
However, the bill was ultimately blocked by a Republican filibuster.
The proposed 'millionaires tax' may instead affect individuals such as bakers, doctors, lawyers, professional athletes, and executives, who are more likely to earn income through wages and salaries.
This stance has been echoed by other prominent billionaires, who argue that increasing taxes on high earners is necessary to address the growing federal deficit.
Congressional Republicans are reportedly considering a 'millionaires tax' to help pay for tax breaks on tips, overtime, and Social Security benefits, as well as the extension of provisions in the 2017 Tax Cuts and Jobs Act.
However, it is unlikely that this proposal would significantly impact billionaires like Buffett, Dimon, Elon Musk, and Jeff Bezos, who primarily accumulate wealth through investment income rather than wages and salaries.
The ultra-wealthy often utilize legal strategies to minimize their tax liability, with some individuals, such as Bezos and Musk, having paid little to no federal income tax in certain years despite being multi-billionaires.
For instance, Bezos did not pay federal income tax from 2007 to 2011, while Musk achieved the same feat in 2018. The issue of tax inequality has been highlighted by Buffett himself, who has noted that he was subject to a lower tax rate than his secretary, Debbie Bosanek.
In response to this disparity, President Barack Obama proposed the 'Buffett rule' in 2011, which aimed to increase the effective tax rate on millionaires to 30% by eliminating certain tax breaks and subsidies.
However, the bill was ultimately blocked by a Republican filibuster.
The proposed 'millionaires tax' may instead affect individuals such as bakers, doctors, lawyers, professional athletes, and executives, who are more likely to earn income through wages and salaries.
