Friday, June 28, 2019
Recently, a group of wealthy Americans wrote a letter to the President saying that they should be taxed according to Senator Elizabeth Warren tax plan. That is, 2% on assets over $50 million and an additional 1 cent on the dollar for assets over $1 billion. Not only do they claim that that the proceeds from the tax will go to well-needed programs, but that the majority of Americans are for a tax for the extremely wealthy.
These types of calls to action are not new, especially when the country is nearing an election. But it is possible that this letter was more partisan than it claimed, as it appeared to cry out more to the Democratic presidential hopefuls than the current establishment. But would it better to tax the ultra-wealthy such a minute amount than just allow them to donate to their heart's content into the private sector, or even to the Federal Bureau of Fiscal Service? The Service said last year that the average donation was $2.69 million, while the federal government received $3.38 trillion from taxes during the 2018 fiscal year.
Would a wealth tax change the economic behaviors of the extremely wealthy? Would they stop donating to their pet causes because that money is already being taken out? We will have to see.
See Steven Chung, Is Imposing a Wealth Tax a Good Idea?, Above the Law, June 26, 2019.
Special thanks to Carissa Peterson (Hrbacek Law Firm, Sugar Land, Texas) for bringing this article to my attention.