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Elizabeth Warren proposes “wealth tax”
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[h1][b]Elizabeth Warren Attempts to Revive Wealth Tax[/b][/h1]
Sen. Elizabeth Warren (D-MA) plans to introduce legislation on Monday that would tax the net worth of the wealthiest people in America, a proposal aimed at persuading President Biden and other Democrats to fund sweeping new federal spending programs by taxing the richest Americans, the [link=https://www.nytimes.com/2021/03/01/business/elizabeth-warren-wealth-tax.html]New York Times[/link] reports.
Ms. Warrens wealth tax would apply a 2 percent tax to individual net worth including the value of stocks, houses, boats and anything else a person owns, after subtracting out any debts above $50 million. It would add an additional 1 percent surcharge for net worth above $1 billion.
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It’s not going to be the “wealth tax” … Janet Yellen took a dump on that yesterday ….
but …
[h1][b]Biden Eyes First Major Tax Hike Since 1993[/b][/h1] [link=https://www.bloomberg.com/news/articles/2021-03-15/biden-eyes-first-major-tax-hike-since-1993-in-next-economic-plan]Bloomberg[/link]: President Joe Biden is planning the first major federal tax hike since 1993 to help pay for the long-term economic program designed as a follow-up to his pandemic-relief bill, according to people familiar with the matter.Unlike the $1.9 trillion Covid-19 stimulus act, the next initiative, which is expected to be even bigger, wont rely just on government debt as a funding source. While its been increasingly clear that tax hikes will be a component Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for, and pointed to higher rates key advisers are now making preparations for a package of measures.
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Bidens Options for Taxing the Wealthy-
Bloomberg looks at President Joe Bidens economic team and their preferred policy options for raising taxes on the wealthy, especially for those who benefiting from the K-shaped recovery during the Covid-19 crisis.
The main three options on the table are:
Removing step up in basis for estates, which revalues assets such as stocks and real estate at market prices, rather than their original purchase cost reducing tax liabilities.
Taxing capital gains for wealthy Americans at income-tax rates, which are higher.
A minimum tax for large companies.-
NBER paper just out showing $175 billion per year in unpaid income tax by the top 1%.
[link=https://www.nber.org/system/files/wo…542/w28542.pdf]https://www.nber.org/syst…es/wo…542/w28542.pdf[/link]
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I love how dergon still somehow thinks “we’re gonna get all this money” from people far smarter and with huge lobbying power from the YUGE government that he desires
Think much, dergs? I mean critcally, not this first order stuff.
Guys like this think making the minimum wage $50 an hour makes everyone wealthy.-
There are three main channels that multinationals can use to shift profits out of high-tax countries: debt shifting, registering intangible assets such as copyright or trademarks in tax havens, and a technique known as strategic transfer pricing
This has to go away.-
Capital gains is a good place to aim for the .001%
[link]https://www.irs.gov/pub/irs-soi/14intop400.pdf[/link]-
yep. cap gains, dividends … all income treated equally … then have progressive rates on that income
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We already have a progressive tax system. You can raise taxes on the wealthy to 90%. This has been tried. I don’t think it increased tax revenues. How about addressing spending? VAT tax?
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I dunno, that last tax increase in 1993 gave us a very good economy for 7 years with 2 years of actual surplus instead of deficits.
After failure of Republican tax policies for the past 40 years I think its time to retry Clintons success & raise taxes again & improve the economy.-
“Under its current system the United States taxes the worldwide income of its citizens, including corporations. Foreign income is taxed by the source country and then taxed again by the U.S. upon repatriation, with credits provided for taxes already paid to the source country. This approach aims to ensure that investments face the same tax rate regardless of where theyre made, which sounds logical enough. But that logic is flawed for two reasons: First, imposing a tax upon repatriation encourages American firms to keep capital offshore.”
[link=https://hbr.org/2012/07/a-better-way-to-tax-us-businesses]https://hbr.org/2012/07/a…y-to-tax-us-businesses[/link]
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[link=https://thehill.com/policy/finance/545469-democrats-look-to-impose-capital-gains-tax-passed-on-at-death]https://thehill.com/polic…tax-passed-on-at-death[/link]
[b]Democrats Consider Capital Gains Tax at Death [/b]
Traditionally, unrealized capital gains have not been taxed, allowing wealthy individuals to transfer stocks, bonds and real estate investments to their children and grandchildren without the recipients being taxed.
Under current law, heirs dont have to pay tax on the capital gains that were accrued by an asset or investment before they received it. They only have to pay capital gains taxes on an inherited asset after they sell it, and they only have to do so for the amount the asset or investment appreciated after it came into their possession.…
The stepped-up basis loophole is one of the biggest tax breaks on the books, providing an unfair advantage to the wealthy heirs every year. This proposal will eliminate that loophole once and for all. Its time to stop subsidizing massive inheritances for the rich and start investing in everyday Americans, Van Hollen said in a statement Monday afternoon.
Warren said it would close a loophole on huge, inherited fortunes for the wealthiest Americans and get the wealthy and well-connected to pay their fair share.
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There should probably be some kind of $ number where that tax would kick in.
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Lots of people going to be burying gold in the yard.
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Quote from DICOM_Dan
There should probably be some kind of $ number where that tax would kick in.
That number should be 0. Whether you are poor or rich, you get the same protection from the US military and you drive on the same roads.
There should be an option, either the estate pays the LT capital gains on the inheritance, or the heir. But it should be paid by someone. Make it payable over 10 years if the heir opts to pay it, that way you can unwind assets to cover the tax without having to borrow against them.
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If someone’s parent leaves them $100k off money that was already earned/taxed once I’m find letting that hand over to the next. I’m OK taxing the bejesus out of Jeff Bezos.
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[h1][b]IRS Losing $1 Trillion a Year in Uncollected Taxes[/b][/h1]
IRS Commissioner Charles Rettig said the IRS needs more and consistent funding to help close a tax gap that is leaving perhaps more than $1 trillion in legally owed taxes uncollected every year, [link=https://www.reuters.com/article/us-usa-treasury-irs-idUSKBN2C0255]Reuters[/link] reports.
Rettig told the Senate Finance Committee that new sources of wealth have arisen since 2011-2013, when the last official annual tax gap estimate of $441 billion was made, including cryptocurrencies and the rising use of complex, foreign-source income.
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Most European countries have gotten rid of their wealth tax for several reasons. They did not collect nearly as much as they anticipated. Required a tremendous amount of work to try to estimate true wealth and collect. Wealthy were quite clever in hiding and underestimating their wealth. It certainly wasn’t as simple as they thought. Like Bidens plan to increase taxes on those making over 400k. You will be surprised by how many people will claim an income of 399k.
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It is now fairly common for American firms to announce large profits to the capital markets while reporting no taxable income to the government.
LOL. Hiding in plain sight.-
“I don’t think it increased tax revenues”
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I think the vast majority of economists not named Laffer disagree. There is broad agreement that the US optimized top marginal income tax rate for revenue generation without harming growth is way way way higher than it is at present.
I would increase the number of brackets, increase the rates on the highest, topping out at maybe 70% for annual income >2million.
As for the corporate side …. Yellen’s push for a global minimum tax (basically the corporate equivalent of the AMT) is a good step forward to try to make sure that corporations pay a significant amount of tax.
Closing loopholes both on the individual and corporate side while beefing up IRS enforcement would be very helpful too. There are trillions of dollars to be had just doing that much.
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Democrats have control so let’s raise taxes and see how it goes. My father says he studied the tax codes and used it to his advantage after the 1993 tax increase. My father says he feared a flat tax most because he would lose the ability to use the tax laws to his advantage. Remember who makes the tax laws…the top 1%
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Raising taxes does not prevent real tax reform. But we already have a truckful or 2 of things needing addressing & proposed for addressing so tax reform goes towards the back. Althiough I am shocked about all the things on Biden’s plate that he wants to address now. I thought he was the “safe” and boring low energy guy.
I would not like a flat tax either but primarily because it is not progressive with income.
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[link=https://www.bloomberg.com/news/articles/2021-04-22/biden-to-propose-capital-gains-tax-as-high-as-43-4-for-wealthy]https://www.bloomberg.com…gh-as-43-4-for-wealthy[/link]
Biden Eyeing Capital Gains Tax as High as 43.4% for Wealthy-
For those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for wealthy investors could be as high as 43.4%. The new marginal 39.6% rate would be an increase from the current base rate of 20%, the people said on the condition of anonymity because the plan is not yet public.
A 3.8% tax on investment income that funds Obamacare would be kept in place, pushing the tax rate on returns on financial assets higher than rates on some wage and salary income, they said.
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And the markets had to change their diapers after filling them today after hearing the anonymous story about TAXES! FLEE!
Last 2 times taxes were raised the economy rose substantially. First under Clinton & then under Obama.
Fear mongering propaganda from the Republicans.
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[link=https://www.bloomberg.com/news/articles/2021-04-24/rich-americans-hunt-for-ways-around-tax-hikes-they-were-warned-about?srnd=premium]https://www.bloomberg.com…ned-about?srnd=premium[/link]
Its all but inevitable that the Biden administration, as well as lawmakers at the state level, will target millionaires and billionaires for more levies. The new reality could feel harsh for investors who got used to paying a top rate of 23.8% on their capital gains, an amount they can lower further with many of the deductions, incentives and accounting tricks offered by the U.S. tax code.
Biden is signaling an epic shift in tax policy: For more than a generation, presidents and Congresses have rolled out the red carpet for investors. When not cutting taxes on capital gains and dividends, lawmakers introduced incentives designed to encourage investment in targeted areas.
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If Biden is successful, Wall Street and investors who make most of their money from capital gains may need to get used to the idea that their taxes will look more like those of wealthy professionals such as doctors, lawyers, entertainers and even investment bankers who currently face marginal income tax rates north of 50% in high-tax states.
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Get rid of the targeted incentives for anything from horse-racing to solar energy. Without those intentional loopholes, revenue from the existing rates would be sufficient for everything the government has to do.
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[link=https://www.politico.com/news/2021/04/25/dems-tax-cuts-biden-484476]Politico[/link]:[b] Not rich? Good news: Youre probably getting a tax cut.[/b]
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New estimates by Congresss official forecasters show Democrats tax cuts included in their March stimulus package will drive down tax rates on low- and middle-income people so much this year that those earning less than $75,000, on average, will owe nothing in federal income taxes.
Those making between $75,000 and $100,000 will pay a scant 1.8 percent average tax rate this year, the nonpartisan Joint Committee on Taxation predicts.
That will shift the relative burden to the wealthy, at least temporarily,[b] [/b]with those earning more than $500,000 expected to pay more than two-thirds of all income taxes this year.
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[h1][b]Biden Seeks to Beef Up IRS Audits of High-Earners[/b][/h1]
President Biden, in an effort to pay for his ambitious economic agenda, is expected to propose giving the Internal Revenue Service an extra $80 billion and more authority over the next 10 years to help crack down on tax evasion by high-earners and large corporations, the [link=https://www.nytimes.com/2021/04/27/business/economy/biden-american-families-plan.html]New York Times[/link] reports.
The additional money and enforcement power will accompany new disclosure requirements for people who own businesses that are not organized as corporations and for other wealthy people who could be hiding income from the government.
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it still seems like a political layup to get rid of the loopholes that allow Amazon to not pay taxes.
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[h1]Ultra-Rich Fear Biden Will Close Favorite Tax Loopholes[/h1]
[link=https://www.bloomberg.com/news/articles/2021-04-27/richest-americans-fear-biden-will-close-their-favorite-tax-loopholes]Bloomberg[/link]: The U.S. president is set to unveil a tax package on Wednesday that promises to raise revenues from those earning $400,000 or more a year. But executives and professionals making over $500,000 annually already pay relatively high tax rates.
What has potentially far greater ramifications is that Biden and Democrats in Congress are threatening to target a much wealthier group the growing number of Americans with fortunes starting in the tens of millions of dollars who often pay lower tax rates than many middle-class families.
White House chief of staff Ron Klain’s simple reply to the Bloomberg story …Umm[link=https://twitter.com/WHCOS/status/1387041464090120195]tweets[/link]:
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[link=https://thehill.com/policy/finance/550962-white-house-bidens-proposed-top-tax-bracket-would-start-at-509k-for-couples]White House: Only couples making more than $509K would see tax hike
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Consistent with the Presidents campaign proposal, we are proposing to reverse the tax cut for the top bracket by returning that top tax bracket to what it wouldve been under pre-2017 law, a White House official said in a statement.
That applies to less than 1 percent of Americans – the very top earners.
In 2022, those pre-2017 brackets are expected to be about $452,700 in taxable income for a single individual and $509,300 in taxable income for a married couple, the official added. That means if you are a married couple earning up to $509,300 – you will not see a dollar increase in your taxes. -
[h1]Republicans Pledge to Roll Back Any Tax Increases[/h1]
[link=https://www.nbcnews.com/politics/congress/gop-democrats-if-you-raise-taxes-now-we-ll-cut-n1267861]NBC News[/link]: Republicans are sending a pointed warning to congressional Democrats: If you raise taxes on corporations and top earners, well just cut them back when we regain power.
Said Sen. Thom Tillis (R-NC): Theres no doubt in my mind that anybody running next year should be talking about reversing what I think are going to be tax increases at the worst possible time.
Added Sen. Rand Paul (R-KY): We dont like the taxes.
____________((Is there anyone here who didn’t already know that’s exactly what the GOP would do?? ))
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This is the demise of the country. There’s no work together and get something done that is actually for the people. Sometimes I think the best thing that could happen is every single incumbent get’s voted out. Let the all new people have to come together and figure it out.
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Quote from dergon
[h1]Republicans Pledge to Roll Back Any Tax Increases[/h1]
[link=https://www.nbcnews.com/politics/congress/gop-democrats-if-you-raise-taxes-now-we-ll-cut-n1267861]NBC News[/link]: Republicans are sending a pointed warning to congressional Democrats: If you raise taxes on corporations and top earners, well just cut them back when we regain power.Said Sen. Thom Tillis (R-NC): Theres no doubt in my mind that anybody running next year should be talking about reversing what I think are going to be tax increases at the worst possible time.
Added Sen. Rand Paul (R-KY): We dont like the taxes.
____________((Is there anyone here who didn’t already know that’s exactly what the GOP would do?? ))
It is what theyll do in any case. In every case. Its been their single issue since Reagan, 50 years ago.
Imagine, never growing or adapting in 50+ years regardless of everything. Everything you believe today is identical to what you believed 50 years ago.
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[h3][link=https://www.bloomberg.com/news/articles/2021-05-24/elizabeth-warren-floats-31-5-billion-plan-to-pursue-tax-cheats?srnd=premium]Elizabeth Warren Floats $31.5 Billion Plan to Pursue Tax Cheats[/link][/h3] Senator Elizabeth Warren is proposing to nearly triple the Internal Revenue Services budget to help identify wealthy individuals who are cheating on their taxes.
The Massachusetts Democrat is proposing to give the IRS a mandatory annual budget of $31.5 billion, up from the $11.9 billion the agency received from Congress for fiscal year 2021. Warrens legislation would remove the agencys funding from the annual appropriations process, so that it wouldnt change based on the year-to-year whims of Congress.
“Big surprise the people who oppose making the IRS enforce our tax laws for wealthy tax cheats are the same Washington insiders who have spent years starving the IRS of resources to go after wealthy tax cheats.”
