A minimal wealth tax on America’s billionaires and multi-millionaires would generate over $900 billion in revenue per year. Since the outbreak of the pandemic, the revenue of Us billionaires has soared about $2 trillion.
A wealth tax, with rates starting at 2% for individuals earning more than $5 million and increasing to 5% for billionaires, would raise $928.39 billion each year. Increasing the tax rate for persons with moreover $1 billion in assets to 10% would raise $1.34 trillion.
With all those American households still struggling with money as a result of the ongoing crisis, an additional $928.39 worth of tax income might fund 2 more $1,400 stimulus payments, according to the news published by Newsweek paper.
A tax on wealth on the country’s richest people could earn $2.52 trillion every year. This could help 2.3 billion families, provide enough vaccinations for the world, and ensure welfare and health support for individuals living in poor countries.
Since the beginning of the pandemic, the 660 billionaires in the United States have raised their aggregate net wealth by $1.1 trillion.
With a $1.1 trillion rise in wealth since March, America’s 660 billionaires could hand out $3,400 stimulus checks to each of the 331 million citizens who live in the country and yet still be wealthy, as reported by the Forbes news.
$930B Tax Collection Each Year
The tax also raises over $1 trillion with a more progressive tax structure, such as a 10% rebate on fortune exceeding $1 billion. These figures might lead to universal health care, a fully renewable economy, and more beneficial initiatives.
This tax is meant to be paid when affluent people pass away, but it exempts the first $12,060,000 in income for individuals. Worse, tax dodging and loopholes have destroyed the economy. More than half of the US’s wealthiest billionaires use sophisticated trusts to avoid paying the inheritance tax, according to the report of KMJ Now news.
Politicians should fight to strengthen the federal inheritance tax, close loopholes, and trusts that serve no function other than tax evasion, and explore enacting a billionaire income tax and an annual wealth tax.