Billionaire Eli Broad: It's time to start thinking seriously about a wealth tax

[BeyondGeography]

...Two decades ago I turned full-time to philanthropy and threw myself into supporting public education, scientific and medical research, and visual and performing arts, believing it was my responsibility to give back some of what had so generously been given to me. But I’ve come to realize that no amount of philanthropic commitment will compensate for the deep inequities preventing most Americans — the factory workers and farmers, entrepreneurs and electricians, teachers, nurses and small-business owners — from the basic prosperity we call the American dream.

...It’s time to start talking seriously about a wealth tax. Some will say I’m calling for the populist masses to take out the pitchforks and take down the titans of Wall Street. Some will say it’s just too difficult to execute. Others will call it a flight of fancy. Don’t get me wrong: I am not advocating an end to the capitalist system that’s yielded some of the greatest gains in prosperity and innovation in human history. I simply believe it’s time for those of us with great wealth to commit to reducing income inequality, starting with the demand to be taxed at a higher rate than everyone else.

...Democrats have offered an array of plans. Senator Elizabeth Warren would levy a 2 percent tax on every dollar of net worth above $50 million. There’s an overdue proposal from Senator Bernie Sanders to increase taxes on estates and inheritances. And then there’s the mark-to-market approach proposed by Senator Ron Wyden, which would treat capital gains income as what it is — actual income for the wealthiest people in America. Currently people who have stocks and other investments that appreciate in value — usually people of means — are taxed at lower rates and are allowed to defer taxes. I’m not an economist but I have watched my wealth grow exponentially thanks to federal policies that have cut my tax rates while wages for regular people have stagnated and poverty rates have increased.

...Let’s admit out loud what we all know to be true: A wealth tax can start to address the economic inequality eroding the soul of our country’s strength. I can afford to pay more, and I know others can too. What we can’t afford are more shortsighted policies that skirt big ideas, avoid tough issues and do little to alleviate the poverty faced by millions of Americans. There’s no time to waste.

More at https://www.nytimes.com/2019/06/25/opinion/taxes-debates-eli-broad.html

[theaocp]

1. Would this be considered a "fundamental change" among the wealthy?

I imagine there are some interests not on board with that mentality.

[marylandblue]

2. I think it's a fundamental change that even one billionaire would say that.

[Blue_true]

9. Actually Soros, Cuban, Buffett, and Gates have said versions of the same conclusion.

I just don't see how a smart rich person can conclude that he or she will be ok with society falling apart around them.

[RKP5637]

3. Yep, we used to have this and it's been eroded over the years ... and now we have disaster

capitalism.

[Hoyt]

4. Ones, like Buffett, have been saying that for years.

[BeyondGeography]

5. True

Maybe the next Democratic President can get it done.

[LisaM]

6. Eli Broad, Mr. Charter School?

Yeah, not that I don't think the wealthier need more taxes, but I don't trust this guy at all.

[Blue_true]

10. A lot of wealthy people have convinced themselves that Charter schools are better schools.

So they don't see that providing more teachers for schools, paying them better and paying them to improve their skills during the summer instead of work low paying part time jobs would improve society faster.

But at least he is thinking in the right way about the problem now. Some still believe that they can build their underground luxury bunker-homes and be perfectly ok as society goes to hell.

[Progressive2020]

7. Democratic Capitalism

Capitalism is great for producing wealth, not so great at distributing it equally. We need government policies that tax the super-rich without diminishing the energy of the economy.

The Working Class and the Middle Class need and deserve more compensation and support for their contributions to the economy. Better wages, childcare, education, health care, vacation time, retirement funds all need to be improved. All of these things will improve the economy as we get better educated workers and more affluent consumers.

This is not socialism, it is not about punishing one class to aid the others. It is about fairness and economic justice. It is about distributing the rewards of our capitalist economy more fairly. It is about compensating the working and middle class for their participation in that economy.

[BeyondGeography]

11. Well said nt

[Princetonian]

8. A Disney heiress has signed onto this statement along with Broad and 16 other billionaires.

A CNN front-webpage video of the Disney heiress is a good watch.

These are good people.