Since the start of the pandemic, the nation's billionaires have done well. Very well. Between March 18, 2020, and October 15, 2021, the total wealth of American billionaires increased more than 70% — from $2.9 trillion to $5 trillion. Over the same time period, the six wealthiest Americans saw their income increase even more sharply. This group, which includes Bezos, Zuckerberg, and Gates, has increased its wealth by more than 125% — from $400 billion to $896 billion.
Great title, Judd. It sounds like the beginning of a verse: The billionaires are angry, their faces red with rage.... I hope this bill will pass! Senator Elizabeth Warren campaigned on the wealth tax issue when she ran for president, and she and Angus King are sponsors of this bill, along with Wyden. Your quote from Robert Reich is priceless! And I love the way you dismantled Romney's argument agains the bill. Thank you, Judd.
It is about time! I’ve never understood the “tax the rich” mantra b:c it ever only relates to tax brackets. It doesn’t matter if we raise their taxes again because they have 1 billion ways not to pay that rate so it’s not an effective or actual rate. It’s only on paper so it wouldn’t bring revenue into our tax base.
Go after all of these Havens & hiding places and tax manipulations by getting rid of them! I don’t know why Americans think we owe it to billionaires to give them a break because they “create jobs.” When they create those freaking jobs, they get big tax breaks and stent held accountable if they don’t create the jobs they said they would.
Plus, they often don’t pay enough to raise a location out of their bracket because of the tax burden the location has to provide.
The whole thing of catering to billionaires so that we might get some of the crumbs that fall off the table even though our labor put the meal on the table. This is killing the spirit of democracy & literal democracy as they use that wealth to control politicians & keep the favorable ones in power, no matter how horrible or what it costs the 98% of the country. We are going to Feudal systems of lords and peasants at this rate…
Bottom line is there’s no reason for anyone who makes billions of dollars to have special ways to hide their money so well that a person making $75K pays more in taxes. They have so much money that their fifth generation from now on will not have to work.
I like everything about this piece and its content, but my favorite line is from Willens as quoted from Politico: “This is going to be perhaps the most difficult tax we have ever seen in terms of trying to plan to minimize it.” This person and other “tax gurus” for the super wealthy are the core of the problem (along with tax loopholes). I don’t care how brilliant/eccentric/entitled/obnoxious Musk, Bezos or any of the others are; without the tax gurus they’d be paying tax rates at least in the range of the rest of us. Maybe we should borrow the cyber security hacker strategy: find and pay the best tax gurus in the world to work for us. Hackers are motivated to cooperate by avoiding prison if they flip, but I’d be willing for tax dollars to pay these tax gurus to save us billions. We’d have to pay them a lot to compensate for what their billionaire clients would pay, but that’s a solvable problem. However we go about it, unless it’s effective immediately and retroactively for 2021, it’s not going to produce what we intend. The tax gurus will see to that.
Sounds pretty good to me☺️ - I gather it’s a one time tax (since additional gains on assets aren’t taxed), and unlike the cynical tweeter, I highly doubt it’ll “trickle down” to any average investor. The BBB & other expenses to be paid are likewise likely one-time investments that will ultimately pay their own “way” (I’m thinking of new power plants/offshore generators etc). My only question again for the Tweeter is, what’s a “principle residence”? I’m guessing it’s where billionaires house their principles when not in use?
It is unconscionable that Krysten Sinema calls herself a Democrat and yet refuses to raise the corporate tax rate. And it is hard to feel sorry for billionaires who benefit from our progressive tax system without paying their fair share. But in their zeal to tax the wealthy, Congress is aiming too low and attempting to pay for their legislation on the backs of people who have little or no income. In fact, one section of the draft bill (Section 138312) would convert tax deferred IRAs into assets that are taxable in full, IMMEDIATELY, if their owners fail to sell certain assets that require “accredited investor” status.
At first glance, this might seem like a rich people’s problem. But many retirees rollover their 401(k)s into IRAs, so their entire life savings is held tax-deferred until they need it. And if they use self-directed IRA assets to invest in alternative energy sources, they will be forced to divest and will be prohibited from reinvesting again unless they have sufficient non-IRA assets (and many taxpayers don’t). If they don’t divest (and imagine what will happen to asset values if everyone is forced to divest at once), their ENTIRE IRA (not just the non-compliant asset) will be disqualified. Then, the IRS will treat the whole thing as ordinary income, because that’s how IRA distributions are taxed.
Of course, if they have to, most people will sell assets to prevent disqualification of their IRAs, but if that happens, there will be NO revenue collection as a result of this provision. Investors will not be taxed until they withdraw funds, and then only at the same tax rates that would have applied without this change.
If the reconciliation bill is enacted including this provision, former Republicans who voted Democrat in 2020 will abandon the Democratic Party in droves. Richard Neal chairs the House Ways and Means Committee, and he is in the pocket of the securities and investment industry. Guess who will benefit if self-directed IRAs are eviscerated?
so, what if they move out of the country? i don't understand the tax code, so don't know if moving to switzerland, for example, would benefit them. not that i want to benefit them
Great title, Judd. It sounds like the beginning of a verse: The billionaires are angry, their faces red with rage.... I hope this bill will pass! Senator Elizabeth Warren campaigned on the wealth tax issue when she ran for president, and she and Angus King are sponsors of this bill, along with Wyden. Your quote from Robert Reich is priceless! And I love the way you dismantled Romney's argument agains the bill. Thank you, Judd.
It is about time! I’ve never understood the “tax the rich” mantra b:c it ever only relates to tax brackets. It doesn’t matter if we raise their taxes again because they have 1 billion ways not to pay that rate so it’s not an effective or actual rate. It’s only on paper so it wouldn’t bring revenue into our tax base.
Go after all of these Havens & hiding places and tax manipulations by getting rid of them! I don’t know why Americans think we owe it to billionaires to give them a break because they “create jobs.” When they create those freaking jobs, they get big tax breaks and stent held accountable if they don’t create the jobs they said they would.
Plus, they often don’t pay enough to raise a location out of their bracket because of the tax burden the location has to provide.
The whole thing of catering to billionaires so that we might get some of the crumbs that fall off the table even though our labor put the meal on the table. This is killing the spirit of democracy & literal democracy as they use that wealth to control politicians & keep the favorable ones in power, no matter how horrible or what it costs the 98% of the country. We are going to Feudal systems of lords and peasants at this rate…
Bottom line is there’s no reason for anyone who makes billions of dollars to have special ways to hide their money so well that a person making $75K pays more in taxes. They have so much money that their fifth generation from now on will not have to work.
"The billionaires are angry." Couldn't click faster.
I like everything about this piece and its content, but my favorite line is from Willens as quoted from Politico: “This is going to be perhaps the most difficult tax we have ever seen in terms of trying to plan to minimize it.” This person and other “tax gurus” for the super wealthy are the core of the problem (along with tax loopholes). I don’t care how brilliant/eccentric/entitled/obnoxious Musk, Bezos or any of the others are; without the tax gurus they’d be paying tax rates at least in the range of the rest of us. Maybe we should borrow the cyber security hacker strategy: find and pay the best tax gurus in the world to work for us. Hackers are motivated to cooperate by avoiding prison if they flip, but I’d be willing for tax dollars to pay these tax gurus to save us billions. We’d have to pay them a lot to compensate for what their billionaire clients would pay, but that’s a solvable problem. However we go about it, unless it’s effective immediately and retroactively for 2021, it’s not going to produce what we intend. The tax gurus will see to that.
Sounds pretty good to me☺️ - I gather it’s a one time tax (since additional gains on assets aren’t taxed), and unlike the cynical tweeter, I highly doubt it’ll “trickle down” to any average investor. The BBB & other expenses to be paid are likewise likely one-time investments that will ultimately pay their own “way” (I’m thinking of new power plants/offshore generators etc). My only question again for the Tweeter is, what’s a “principle residence”? I’m guessing it’s where billionaires house their principles when not in use?
Good Good Good —- let it be so!
Why not just take away the ability to borrow against the gains?
Great summary. Thanks! It motivated me to reach out to Elon Musk. I'll let you know if I hear back:-) And, seriously, I will repost this.
It is unconscionable that Krysten Sinema calls herself a Democrat and yet refuses to raise the corporate tax rate. And it is hard to feel sorry for billionaires who benefit from our progressive tax system without paying their fair share. But in their zeal to tax the wealthy, Congress is aiming too low and attempting to pay for their legislation on the backs of people who have little or no income. In fact, one section of the draft bill (Section 138312) would convert tax deferred IRAs into assets that are taxable in full, IMMEDIATELY, if their owners fail to sell certain assets that require “accredited investor” status.
At first glance, this might seem like a rich people’s problem. But many retirees rollover their 401(k)s into IRAs, so their entire life savings is held tax-deferred until they need it. And if they use self-directed IRA assets to invest in alternative energy sources, they will be forced to divest and will be prohibited from reinvesting again unless they have sufficient non-IRA assets (and many taxpayers don’t). If they don’t divest (and imagine what will happen to asset values if everyone is forced to divest at once), their ENTIRE IRA (not just the non-compliant asset) will be disqualified. Then, the IRS will treat the whole thing as ordinary income, because that’s how IRA distributions are taxed.
Of course, if they have to, most people will sell assets to prevent disqualification of their IRAs, but if that happens, there will be NO revenue collection as a result of this provision. Investors will not be taxed until they withdraw funds, and then only at the same tax rates that would have applied without this change.
If the reconciliation bill is enacted including this provision, former Republicans who voted Democrat in 2020 will abandon the Democratic Party in droves. Richard Neal chairs the House Ways and Means Committee, and he is in the pocket of the securities and investment industry. Guess who will benefit if self-directed IRAs are eviscerated?
The billionaires are angry? Phuquem. They're not entitled to any more consideration than they give the rest of us.
Oops provision appears to be DOA. Damn you Joe Manchin!
So billionaire taxes is based on the gains of stocks and other tradeable assets, is like regular America’s 1099s.
so, what if they move out of the country? i don't understand the tax code, so don't know if moving to switzerland, for example, would benefit them. not that i want to benefit them