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.
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
$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.
Yeah federal taxation doesn’t work based on “I should be able to put 15% into my 401(k) and live where I want.”
$100k is not basically poverty in LA/NY or everyone making under $100k would be below poverty and that’s considerably more than half the population (median household income - that is, generally 2 working adults - of 68k in NYC, and NYC is more expensive than LA).
For everyone saying this is not harsh enough, it is a WEALTH tax. Not income, wealth. All owned assets. Meaning any of these people who don’t increase their net worth by at least the amount of the tax each year will lose more and more of their total wealth year over year.
It isn’t intended to strip all mega rich people of all their stuff immediately - that obviously could never pass - but still is intended to open the door to wealth taxes and redistributive policies more broadly.
It’s a great move. If we can get anything like this passed, it is a significant victory.
Just getting something like this out of committee and on the floor for debate would be huge. Unfortunately it stands no chance with the current congress
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In other news, renting a house has never been more popular! On secondary news, rent has raised across america by 8% unilaterally
The Supreme Court would veto it as unconstitutional even if passed. https://www.npr.org/sections/money/2019/12/17/787476334/is-a-wealth-tax-constitutional
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8% seems fine considering it’s a wealth tax, not an income tax. In 7 years that takes away 56% of their wealth.
Granted, I’m not at all clear on what sort of assets constitute “wealth” here. How much of Musk’s $242.4 billion net worth that google currently spits out would be affected by this?
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8% is a good figure. 8% gets real change and it gets it fast. This rhetoric helps nothing. Wealth taxes are very different from income taxes.
8% on wealth is actually insane. Stock market growth is only 10% on average, and average inflation of 3%. If they had average growth they’d be losing significant money (like 1-2%) each year. So in practice 8% is just a really slow seizing of all wealth, and prevents them from making any more money unless they’re taking huge gambles and getting huge paydays that beat the market (which they would be incentivized to do). I’m all for taxing the hell out of the rich, but that’s not a well designed system and creates really perverse incentives.
Considering that 8% only starts at one million times average household wealth, I’ve gotta say who the fuck cares. There is no justifiable reason for any singular person to have that much wealth. Not one.
What a travesty. Is a man not entitled to the sweat of the brows of everyone he’s screwed over to amass his fortune? Sure, I might not have two cents to rub together between paychecks but I’d better oppose this just in case I get rich some day.