A coalition of uber-rich progressives have started a campaign to increase their own tax liabilities.
Some Rich Global Citizens Advocate for Fairness
In a bold show of solidarity with the working class, a select group of wealthy heirs and executives are advocating for increased taxes for the rich.
The group includes a Rockefeller descendant, Walt Disney’s great-niece, and an EVP of the pharmacy chain Walgreens.
Wealthy Say They’re “Proud to Pay More”
The group published a letter titled “Proud to Pay More,” where they detailed their reasons behind advocating for the hike.
“Elected Leaders Must Tax Us”
“Elected leaders must tax us, the super rich. We’d be proud to pay more,” their website reads.
Letter Aimed at World Economic Forum
Addressing the “global leaders gathering at Davos,” an economic forum that draws powerful attendees from around the world, the letter begins with a strong message that comes across very clearly.
“When Will You Tax Extreme Wealth?”
“When will you tax extreme wealth?” the letter asks. By the end of the first paragraph, the letter threatens “catastrophic consequences” if economic inequality is not dealt with.
Increased Taxes Won’t “Alter Our Standard of Living,” Group Says
“Our request is simple,” the group wrote. “We ask you to tax us, the very richest in society. This will not fundamentally alter our standard of living, nor deprive our children, nor harm our nations’ economic growth.”
An Indictment of Trickle-Down Economics
“The value of fairer tax systems should be self-evident,” the letter continues.
“We all know that ‘trickle down economics’ has not translated into reality. Instead it has given us stagnating wages, crumbling infrastructure, failing public services, and destabilized the very institution of democracy.”
Billionaires Game the System to Lower Tax Bills
According to tax experts, the richest of the rich have systems for filing their taxes that result in them paying a much lower tax rate than they would be under an equitable system.
Reducing What’s Owed
From using financial managers to finagle their investments specifically to reduce their income on paper to utilizing shell companies to hide profits, there are ways around paying income tax.
When the Rich Pay No Taxes At All
Some billionaires are so adept at doing this that they end up having zero income tax liability some years, including Jeff Bezos and Elon Musk.
IRS to Investigate Potential Issues with Wealthy Taxpayers
Now that the IRS has received an influx of funding, it promises to review situations like these more closely to make sure none of the loopholes are outside the scope of the law.
Patriotic Millionaires Want to Pay More
Meanwhile, the wealthy citizens who penned the letter to Davos attendees (known collectively as Patriotic Millionaires) don’t want to find loopholes to pay lower taxes.
They’re advocating for a fair system in which the more an individual earns, the more taxes they’d owe.
Bill Gates on Wealth Inequality
While he did not sign the Proud to Pay More letter, Bill Gates said that he would support tax increases and spoke at the World Economic Forum about wealth inequality.
The Rich “Should Be Pushed to Be More Generous”
“Those who have the most – whether it’s countries, companies, or individuals – should be pushed to be more generous,” Gates said.
Donations Not Enough According to Patriotic Millionaires
The letter’s signatories, however, believe that donations are not the answer, saying that those temporary fixes would not lead to the necessary changes.
“Individual Action” Is Not Enough
“The solution to this cannot be found in one-off donations or in philanthropy; individual action cannot redress the current colossal imbalance,” they wrote.
Billions Would Be Raised With a 2% Tax On Uber Rich
Studies have shown that the revenue that would be generated from the fair taxation of uber-rich people would be significant enough to make systemic change to the tune of $250 billion.
Survey Shows 75% of Wealthy Would Be Willing to Pay More Taxes
Patriotic Millionaires ran a survey that revealed most of its responders are in favor of a flat 2% wealth tax on the very rich.
The overwhelming consensus was that the increased revenue should be spent on expanding public services and boosting the economy.
Environmental Concerns
Rich progressives also show concern for the environment and have called out other wealthy citizens for choices that impact climate change.
Abigail Disney, who previously used a private jet as transportation, says she’s made changes “to protect the environment.”
The 1%’s Impact on Climate Change
Disney’s comments also seemed to be directed at specific billionaires whose emissions she considers extreme, mentioning certain rich people’s use of “private jets, superyachts, gas-guzzling hot rods, helicopters, and (for a lucky few) private space rockets.”
Congress Not Willing to Raise Taxes for the Rich
The fight for higher tax rates for the rich is not new, but attempts to equalize the system are usually dead on arrival by the time they reach Congress.
Notably, about half of the current members of Congress are millionaires and would be personally impacted by tax changes for the wealthy.
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The post “Proud to Pay More” – Wealthy Progressives are Calling for Tax Hikes for the Rich first appeared on From Frugal to Free.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
