Meet the top economist - and newest Zeteo contributor! - who is making the intellectual, political, and financial case for a wealth tax. Read this exclusive excerpt from his latest book.
Love the idea, but why do we set our sights so low? Why do we hope to get something approaching parity of rates for the ultra wealthy instead of progressively higher rates (e.g. 2% for 100M, 3% for $1B, 5% for 10B, 10% for 100B, etc).
Also, another simple change would go a long way - whenever they "borrow" money against their shares/companies, this should be a taxable event (in effect treated the same as selling and resetting the cost-basis). Right now, the ultra rich, just "borrow" billions and never pay back to fund their yachts, homes, etc, which lets them realize all their gains tax free. Its obscene.
With all the talk of taxing billionaires, is that why Peter Thiel bought a $12 million mansion in Buenos Aires & Zuckerberg just bought a castle in Ireland ? 🙄
Yes it’s past time to tax the ultra wealthy. The current system is unsustainable.
The billionaires are always so outraged that we would expect them to pay their taxes. They live in these bubbles and talk to other billionaires and probably say "why do they expect us to pay taxes we do so much for these underlings". We need FDR policies on steroids to make up for the last 80 years of the rich taking from the middleclass.
Wow now that's ironic • what I'm reading on substact I am also watching on the tube. I guess if we don't fix taxes, next generation's commercials will feature it. * Except for the billionaire's owning TV. It's got to be changed.
It breaks my heart to see, time and time again, and even what are supposed to be among the most progressive media, at best argue for cosmetic changes of capitalism. The insane rise in social differences has completely shifted political and economical attitude that we here have to debate whether to tax billionaires - as if taxing Musks of this world would really make a true difference. Any serious student of history and politics knows that such social differences that tolerate the existence of billionaires destabilise everything and inevitably lead to fascisms - as is happening today in the US.
What is being exposed is what everyone who is paying attention has known for years. Warren in her 2020 campaign for president pushed for a wealth tax but establishment Democrats shied away from it so as to not offend their wealthy donors and there's not a snowball's chance in hell that Republicans would want to take on such a thorny issue. So that leaves a minority of the political industry like Mamdani or El-Sayed to begin the hard conversations.
El-Sayed is not an elected official yet but ending the chokehold that the Citizens United decision has to be a major start toward confronting a wealth tax. The voters' political will is there in the polling so it's up to candidates to carry through with major campaign finance legislation.
Once Congress has the gumption to get rid of $$$ in political campaigns there can be a real honest dialogue about holding the wealthy accountable because the wealth influence will be lessened but certainly not abolished.
And there is a small but influential group of ultra wealthy like Gates who have been for a wealth tax. But such a magnanimous policy amongst the wealthy is idealistic at best due to the greed and avarice of the human condition.
Very informative,but aggravating. Just as we have separate legal systems for the wealthy and the rest of us, we have dramatically different tax treatment. It's this sense of inequality - though most people don't even know the details - that is driving the unrest we're seeing in our politics. Welcome to Zeteo!
Let's have the financial transactions tax that were discussed some years back. I haven't heard them mentioned in a long time. Real estate taxes could increase significantly for highly valued properties. There are ways to make the rich pay their fair share, but that's vanished from the Overton window.
Wall Street is basically legalized gambling at this point on a massive scale (a tiny tiny fraction actually funds companies), so it should be taxed as such - confiscatory high rates (90%+) for any stock sale where you hold it less than 30 days. End day trading and front running in one swoop. Even long term rates should be higher than income tax rates, not less.
I’m gobsmacked to say the least. The fact is that the middle class and the poor pay more taxes than the ultra rich means that, yes, democracy is a farce. Those that pay no taxes have the highest income. Yet we are ruled by those selfsame people who have the audacity to tell us what OUR taxes should be spent on. Off with their fucking heads! We WILL have free childcare, a LIVING WAGE, AFFORDABLE housing, good educational facilities, EQUALITY UNDER THE LAW. You are the waste and abuse Musk. Your government contracts came out of our wages! It’s not your money Musk, Bezos and all that follow that creed. Just being rich you think gives you preference is over. Remember the French Revolution?Your time will come so get that spaceship built pronto and leave this planet. Enough of this noise!
Love the idea, but why do we set our sights so low? Why do we hope to get something approaching parity of rates for the ultra wealthy instead of progressively higher rates (e.g. 2% for 100M, 3% for $1B, 5% for 10B, 10% for 100B, etc).
Also, another simple change would go a long way - whenever they "borrow" money against their shares/companies, this should be a taxable event (in effect treated the same as selling and resetting the cost-basis). Right now, the ultra rich, just "borrow" billions and never pay back to fund their yachts, homes, etc, which lets them realize all their gains tax free. Its obscene.
What a wonderful and maddening article. Holy cash cows!!🐮 💔🇺🇸
THE GREED! The hoarding of billions of dollars that you never spend is a mental illness.
This is the kind of analysis and information we need. Thank you Zeteo
With all the talk of taxing billionaires, is that why Peter Thiel bought a $12 million mansion in Buenos Aires & Zuckerberg just bought a castle in Ireland ? 🙄
Yes it’s past time to tax the ultra wealthy. The current system is unsustainable.
The billionaires are always so outraged that we would expect them to pay their taxes. They live in these bubbles and talk to other billionaires and probably say "why do they expect us to pay taxes we do so much for these underlings". We need FDR policies on steroids to make up for the last 80 years of the rich taking from the middleclass.
Wow now that's ironic • what I'm reading on substact I am also watching on the tube. I guess if we don't fix taxes, next generation's commercials will feature it. * Except for the billionaire's owning TV. It's got to be changed.
It breaks my heart to see, time and time again, and even what are supposed to be among the most progressive media, at best argue for cosmetic changes of capitalism. The insane rise in social differences has completely shifted political and economical attitude that we here have to debate whether to tax billionaires - as if taxing Musks of this world would really make a true difference. Any serious student of history and politics knows that such social differences that tolerate the existence of billionaires destabilise everything and inevitably lead to fascisms - as is happening today in the US.
Is There Political Will?
What is being exposed is what everyone who is paying attention has known for years. Warren in her 2020 campaign for president pushed for a wealth tax but establishment Democrats shied away from it so as to not offend their wealthy donors and there's not a snowball's chance in hell that Republicans would want to take on such a thorny issue. So that leaves a minority of the political industry like Mamdani or El-Sayed to begin the hard conversations.
El-Sayed is not an elected official yet but ending the chokehold that the Citizens United decision has to be a major start toward confronting a wealth tax. The voters' political will is there in the polling so it's up to candidates to carry through with major campaign finance legislation.
Once Congress has the gumption to get rid of $$$ in political campaigns there can be a real honest dialogue about holding the wealthy accountable because the wealth influence will be lessened but certainly not abolished.
And there is a small but influential group of ultra wealthy like Gates who have been for a wealth tax. But such a magnanimous policy amongst the wealthy is idealistic at best due to the greed and avarice of the human condition.
Important article
Very informative,but aggravating. Just as we have separate legal systems for the wealthy and the rest of us, we have dramatically different tax treatment. It's this sense of inequality - though most people don't even know the details - that is driving the unrest we're seeing in our politics. Welcome to Zeteo!
I have read that chump is purposely trying to devalue the dollar and bankrupt the country and then introduce crypto as our savior.
That's why they're recognized as a bank now.
I'm sure it will have full FDIC backing as well.
Don't care where they live. Don't care if they live. Tax what CORPS make off our backs. Would fund so much.
Poor babies have to survive on 2 instead of 3 billion.
Let's have the financial transactions tax that were discussed some years back. I haven't heard them mentioned in a long time. Real estate taxes could increase significantly for highly valued properties. There are ways to make the rich pay their fair share, but that's vanished from the Overton window.
Wall Street is basically legalized gambling at this point on a massive scale (a tiny tiny fraction actually funds companies), so it should be taxed as such - confiscatory high rates (90%+) for any stock sale where you hold it less than 30 days. End day trading and front running in one swoop. Even long term rates should be higher than income tax rates, not less.
Tax wealth, not work.
Superb, articulate & necessary read - thank you Gabriel & Zeteo.
I’m gobsmacked to say the least. The fact is that the middle class and the poor pay more taxes than the ultra rich means that, yes, democracy is a farce. Those that pay no taxes have the highest income. Yet we are ruled by those selfsame people who have the audacity to tell us what OUR taxes should be spent on. Off with their fucking heads! We WILL have free childcare, a LIVING WAGE, AFFORDABLE housing, good educational facilities, EQUALITY UNDER THE LAW. You are the waste and abuse Musk. Your government contracts came out of our wages! It’s not your money Musk, Bezos and all that follow that creed. Just being rich you think gives you preference is over. Remember the French Revolution?Your time will come so get that spaceship built pronto and leave this planet. Enough of this noise!