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Most millionaires assist imposing increased revenue taxes and a wealth tax, in keeping with a brand new ballot — so long as these tax will increase are for individuals richer than them.
About 6 in 10 millionaires surveyed in a YouGov poll released Monday stated they might assist a brand new marginal tax fee of fifty% or extra on annual revenue over $100 million. At present, the best federal tax bracket in the U.S. is 37% for earnings over $609,350.
“Even millionaires support higher taxes on the rich,” Morris Pearl, chair of the Patriotic Millionaires, stated in a statement. The advocacy group, which commissioned the YouGov ballot, represents high-net-worth People who assist increased minimal wages and taxes on the rich.
Equally, the ballot discovered that 56% of millionaires would “strongly” or “somewhat” favor a progressive wealth tax on “extreme wealth,” affecting households with a web value of at the very least $192 million, or 1,000 occasions the median U.S. family wealth. The wealth tax would cap out at 8% for households value $192 billion or extra. Ostensibly, this prime bracket would solely apply to a handful of U.S. billionaires, together with Tesla CEO Elon Musk, Amazon CEO Jeff Bezos and Meta (Fb) CEO Mark Zuckerberg.
Tax the wealthy(er)?
The YouGov ballot is predicated on responses of 800 People who self-reported a web value of at the very least $1 million, excluding the worth of their dwelling. It was fielded Might 24 to June 6.
The ballot itself, nonetheless, primarily gauges sentiment on tax insurance policies for centi-millionaires (individuals value lots of of thousands and thousands of dollars) and billionaires.
In a single query, respondents have been requested how they outline “extreme wealth.” The preferred responses have been outlined as having property value over $101 million. Solely 4% outlined excessive wealth as having property between $6 million and $10 million in worth.
Most respondents stated they have been more likely to assist a 2% wealth tax on households with greater than $50 million and $100 million in property. However there was far much less urge for food to tax households value lower than that quantity.
Wealth vs. revenue tax
Within the U.S., the federal authorities’s major supply of cash is particular person revenue taxes — that's, taxes on the cash individuals earn normally from their jobs. Tax charges on revenue fluctuate from 10% to 37% and are utilized progressively, which means sure parts of revenue are taxed at sure charges.
For instance, the federal revenue tax on a single particular person incomes $58,000 a yr appears to be like like this:
- The primary $11,600 is taxed at 10%,
- $11,601 to $47,150 is taxed at 12%,
- and $47,151 to $58,000 is taxed at 22%.
For folk incomes greater than that, there are 4 extra tiers starting from 24% to 37%. Within the Nineteen Eighties, the highest revenue bracket for the highest-earning People was 70%, however that quantity has shrunk a number of occasions over the previous a number of a long time.
This methodology additionally has limitations in terms of taxing the wealthiest People as a result of most of their wealth will not be derived from their salaries. Somewhat, it’s a mixture of dividends, capital good points and wage in addition to the worth of their property, like their possession stake in an organization, their home and different actual property.
A wealth tax would tax the cumulative worth of all their wealth, not simply how a lot they earn. The U.S. has some wealth taxes, like property and property taxes, but it surely doesn't absolutely tax somebody’s web value like another international locations, together with Colombia, France, Norway, Spain and Switzerland.
Lately, the U.S. has been lurching towards a wealth tax system, with progressive Sens. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass., main the cost. In March, Warren launched the Extremely-Millionaire Tax Act, a proposal that might levy a 2% wealth tax on households value $50 million or extra.
Pearl, from the Patriotic Millionaires, supported the measure.
“Billionaires and millionaires like me do not amass such extraordinarily large fortunes because we work harder,” he said on the time. “Instead, it’s because we rigged the tax code so that wealthy people like us who make most of our money off our assets pay next to nothing — or sometimes literally nothing — in taxes.”
Regardless of public assist of a wealth tax from most U.S. millionaires themselves, the proposal has stalled in Congress and is unlikely to move this session.
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