How A lot Bezos, Musk, Gates and Zuckerberg Would Pay

4 min learn

This story initially appeared on Enterprise Insider

US billionaires would have paid a mixed $114 billion for 2020 beneath an “ultra-millionaire” tax that Sen. Elizabeth Warren of Massachusetts proposed on Monday, in response to two tax teams.

The invoice, known as the Extremely-Millionaire Tax Act, would apply an annual 2% tax on particular person internet price between $50 million and $1 billion. People would owe an annual 3% tax on internet price above $1 billion.

Warren mentioned that the tax would have an effect on solely about 100,000 American households and that the nation’s billionaires would pay about half of the overall tax quantity.

The nation’s roughly 650 billionaires have a collective wealth of greater than $4.2 trillion, People for Tax Equity and the Institute for Coverage Research Challenge on Inequality mentioned, basing their calculations on Forbes information. Their fortunes have elevated by about 44% since March 2020, when the pandemic lockdowns within the US began, the teams mentioned.

Based mostly on the wealth of American billionaires on the finish of 2020, over a decade the wealth tax on them alone would fund about three-quarters of President Joe Biden’s $1.9 trillion coronavirus aid bundle, the 2 teams mentioned.

And a couple of third of the wealth tax could be paid by the 15 richest People, who mixed have a fortune of greater than $2.1 trillion, the teams mentioned.

A separate evaluation by the College of California at Berkeley, cited by Warren, estimated that the tax would generate $3 trillion in income over 10 years.

Warren proposed that the brand new federal cash could be invested in applications comparable to childcare, training, and infrastructure.

Here is what Jeff Bezos, Elon Musk, Invoice Gates, and Mark Zuckerberg — the nation’s 4 richest folks on the finish of 2020, based mostly on information from Forbes — would have paid for 2020 beneath the wealth tax proposal, in response to the ATF and IPS’ calculations.

Jeff Bezos: $5.7 billion


Picture credit score: Alex Wong/Getty Pictures

The departing Amazon CEO would have paid $5.7 billion in wealth taxes for 2020, the ATF and IPS mentioned. On the finish of 2020, he had a fortune of $191.2 billion, per information from Forbes.

Washington legislators have additionally proposed a tax on the state’s billionaires. Bezos would pay virtually $2 billion a yr beneath this tax.

Elon Musk: $4.6 billion


Picture credit score: Maja Hitij/Getty Pictures

Musk, the tech billionaire behind Tesla, SpaceX, Neuralink, and The Boring Firm, would have paid $4.6 billion for 2020 beneath Warren’s proposal, the ATF and IPS mentioned.

On the finish of 2020, Musk’s real-time price was $153.5 billion, after his wealth elevated greater than sixfold in 10 months, per Forbes information.

Invoice Gates: $3.6 billion


Picture credit score: Dursun Aydemir/Anadolu Company/Getty Pictures

Gates, who had a fortune of $120 billion by December, per Forbes, would have paid $3.6 billion in wealth taxes for the yr, the ATF and IPS mentioned.

Mark Zuckerberg: $3 billion


Picture credit score: The Asahi Shimbun by way of Getty Pictures

The Fb CEO would have paid about $3 billion in wealth taxes for 2020, the ATF and IPS mentioned. As the tip of 2020, he was price $99.9 billion, in response to Forbes.

Momentum for a wealth tax has grown throughout the pandemic

An Oxfam report discovered billionaires’ wealth elevated by $3.9 trillion from final March to December globally. The rise for the world’s 10 richest billionaires might pay for everybody to get vaccinated and keep out of poverty, Oxfam mentioned. Within the second half of 2020, in the meantime, 8 million People fell into poverty.

Oxfam recommended wealth taxes could possibly be a great choice to reverse this. In December, teachers printed a examine of fifty years of tax cuts for the rich that recommended “trickle-down” economics made inequality worse and did not result in financial progress and employment.

“Skyrocketing billionaire wealth within the midst of a well being and financial disaster weighing down thousands and thousands of People is likely one of the finest causes for enacting the Extremely-Millionaire Tax Act,” Frank Clemente, the chief director of People for Tax Equity, mentioned.

“This laws will slim the nation’s destabilizing wealth hole whereas elevating trillions of {dollars} from billionaires and the opposite superrich.”

Argentina turned the primary nation to reply to the pandemic with a one-off “millionaire tax.” Fewer than one in 100 earners can pay the tax, which the federal government hopes will elevate $3.78 billion to assist pay for its pandemic response.

Source link