Watch two experts debate the implications of Elizabeth Warren's wealth tax
Sen. Elizabeth Warren unveiled her new proposal to tax the wealthy that calls for a 2% annual tax on wealth of more than $50 million and 3% on wealth more than $1 billion. Grover Norquist, president of Americans for Tax Reform, and David Gamage, law professor with Indiana University, Bloomington who advised on this tax plan, joined "Squawk Box" on Tuesday to discuss. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
A slew of Democrats on Capitol Hill - including progressives Sen. Elizabeth Warren, D-Mass., and Sen. Bernie Sanders, I-Vt. - on Monday proposed a 3% total annual tax on wealth exceeding $1 billion.
They also called for a lesser, 2% annual wealth tax on the net worth of households and trusts ranging from $50 million to $1 billion.
The Ultra-Millionaire Tax Act aims at reining in a widening U.S. wealth gap, which has been exacerbated by the Covid pandemic.
“The ultra-rich and powerful have rigged the rules in their favor so much that the top 0.1% pay a lower effective tax rate than the bottom 99%, and billionaire wealth is 40% higher than before the Covid crisis began,” Warren said Monday in a statement.
About 100,000 Americans - or, fewer than 1 in 1,000 families - would be subject to a wealth tax in 2023, according to Emmanuel Saez and Gabriel Zucman, economists at the University of California, Berkeley.
The policy would raise at least $3 trillion over a decade, they found.
Warren called for the tax revenues to be invested in child care and early education, K-12 education and infrastructure.
Aside from Warren and Sanders, other co-sponsors of the legislation include: Sens. Sheldon Whitehouse, D-R.I.; Jeff Merkley, D-Ore.; Kirsten Gillibrand, D-N.Y.; Brian Schatz, D-Hawaii; Edward Markey, D-Mass.; and Mazie Hirono, D-Hawaii. Reps. Pramila Jayapal, D-Wash.; and Brendan Boyle, D-Pa., are also co-sponsors.
The bill likely faces significant obstacles in the Senate, where Democrats hold the slimmest of majorities.
Some groups also forecast a wealth tax would have some negative effects.
A 2020 Tax Foundation analysis of separate Warren and Sanders wealth tax proposals during their presidential runs found they would reduce U.S. economic output by 0.37% and 0.43%, respectively, over the long term.
A wealth tax would also face administrative and compliance challenges, such as difficulty valuing assets and likely tax evasion schemes, according to the Tax Foundation.
The Ultra-Millionaire Tax Act would attempt to address some of these issues.
The legislation would invest $100 billion into IRS systems and personnel, ensure a 30% audit rate for the super wealthy, and impose a 40% exit tax on wealthy Americans who seek to renounce their citizenship to avoid a wealth tax.
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Taxing unrealized gains is a GREAT way to get anyone with wealth to leave the USA for other countries with more favorable economic structures and cultures. Like it or not, "rich" people provide jobs and make this economy really move. Not only that, but they already pay on a dollar for dollar basis more tax revenues. Once you start implementing fairy tale taxes on items like unrealized gains or "wealth" you will see a rapid decline in our country's economy as they leave and the tax dollars they provide will decrease substantially. So what does that mean? That means people with less "wealth" have to make up the gap - i.e. the middle class and upper middle class will get railroaded with higher taxes than ever and have no real way to get out of it. Sounds fund. I strongly disagree with Bernie, but his idea to tax huge transactions in financial markets at a small percentage is a far better idea than this garbage to raise some extra tax dollars.
Just tax heavily on luxury items. Taxes on a Ferrari or lamborghini should not be the same as a Ford f150. Tax them on 2nd, 3rd, 4th residences and patek watches. These goods are not required for humanity but just the 1%. So if somebody wants to buy one, make sure it's the last time they can afford to buy one. If they don't like it, they can always leave, like a treasoner, and set up shop elsewhere and try tomake the planet à little more equitable. No such thing as trickle down economics. Myth.
Their wealth ain't leaving nowhere. The ultra rich have the vast majority of their money in assets. You can't take your house with u. It can be confiscated after you leave. Most billionaires are heavily bound to the economy of their country (this case the US) and just exiting won't be super easy. Also, this tax wouldn't apply to most millionaires, but to the ones owning hundreds of millions and billions. They don't actually create that many jobs. Like bezos isn't even leading amazon anymore, he's just an investor like any other. The company and its leadership creates jobs. Bezos can sell his stock, and nothing would happen other than a change in ownership of those stocks
@@redhidinghood9337 I'm gonna be honest with you, I cannot have this argument in good faith. The premise of taxing unrealized gains is so wildly idiotic and largely impossible that advocating in any way for its implementation gets an automatic pass on my list of things to respond to.
@@thierrynolevaux9268fuck1ng comunist
@@thierrynolevaux9268argued like a true Marxist
What a load of crock! Forget the wealth tax... instead, remove the loop holes, subsidies and the TAX BREAKS that these billionaires paid the policy makers for in the form "donations". Better yet, let's get big money out of politics altogether and see how the logic of worshiping corporations holds up. Do it. Do it. I dare you!
I AGREE !!!!!! They have loopholes all over, but guess who pays these politicians???? Bill gates, Besos, Buffet, Zuckerberg. They aren't going to hurt the people who are paying for them.
If I was a billionaire I would not pay those politicians they need to raise donations from the people in their district
Taxing unrealized gains is so stupid, 99% of their wealth is in stockmarket which moves up and down all the time. Elon musk net worth can go from 5 billion to 3 billion in 1 day
It would be a good idea if the government knew how to spend our money.
They do. They choose to put it all into the military.
@@zoned7609 not all, just 95%
Exactly they'd need assurances on the efficiency of that kind of money before handing it over to people who will distribute it between friends
@@reterumstrict1091 actually about 15-20 percent
@@zoned7609 lol, we put around 3.4 percent of our gdp into the military. You know that you can actually google these things right? Stop throwing out false accusations.
Do it tired of the middle class being blamed for not throwing in enough.
What are you talking about 😆
I agree my friend they should be paying more
@Drumpf Tawrd What are you talking about ? Almost all the taxes are paid by the top 10%. 60% of the population doesn't even pay any tax. Keep trying to propagate a false narrative.
True words of peasants on this thread. Go out and work hard and change a billion lives instead of being jealous of those who are successful.
They should just fix the tax loopholes as well.
I'm curious, what are the loopholes that should be fixed?
If you're over 50 million your tax attorney will continue to allow you to pay next to nothing !
Instead of punishing the rich, we need to focus on empowering/educating the poor. I know Warren is proposing to have some of that money go towards that end, but this is not a problem that you can just throw money at and solve the problem. We need the political and social will. Let's start by not having public education funded by property taxes.
If not funded by property taxes how would public education be funded?
Public exucation is funded with property taxes.
@@rogertheartfuldodger I didn't say I have all the answers. Perhaps pool all the taxes in a state and redistribute them evenly?
@@cozyslor: A source still needs to be defined. You're leaving the solution hanging.
Love it when academia get into policy making. Terrible idea.
i realize I am kinda randomly asking but do anybody know of a good website to watch new tv shows online ?
@Greyson Forrest Flixportal :P
@Kash Nicholas thank you, I signed up and it seems to work :) Appreciate it !
@Greyson Forrest glad I could help =)
Can we possibly find some leftists who understand economics? This law professor clearly doesn't.
Leftists don’t understand economics, that’s why they’re leftists
@@reterumstrict1091 hahaha
It should be %10 straight across the board. Plus we need them idiots in Washington to stop sending our money to other country's. They also need to stop sending our money on their special interest. If these thieves in Washington want to give money to other country's they can give theirs same with their special interest tired of them stealing our money and giving it away
Wealth taxes are such a stupid idea.
It is so stupid it hurts my brain - how to tax a theoretical wealth - just because they don’t know how to manage a country they try to tax the smartest people on the planet this will end bad and more taxes on the poor
Why bother with taxes when the FED can simply print money??
We can only have so much money in circulation before it adversely affects the value of the dollar!!! Look at what happened with Zimbabwe!!
@@Islander05 Is that right in a world where Europe and Japan are printing as well. People fled the Zimbabwe dollar because they had better places to go....
Nothing to debate...it’s unconstitutional ( a wealth tax is not an income rax)
Sorkin is so incredibly shilly.
Please educate yourself and don't listen to these clowns. Anyone with a financial education will know this won't work.
I disagree
ALWAYS WEARY OF HEADLINES STARTING WITH EXPERTS. THE WORD EXPERTS USED WAY TOO MUCH THESE DAYS.
"Expert" = The media's cherry picked propagandists.
norquist is this life long anti-tax guy, so he's probably pretty acquainted with the tax laws and i don't agree with him, but he is an informed person on the topic... and the law professor in being an academic probably has an academics knowledge of the topic, as 'the law' essentially governs who/how we tax... i guess all you bring is caps lock and no position, just whinging. just aother shitposting bot.
“Wary”
If they are decent Americans they will make their fair share contribution. If this doesn't change people will be forced to make these people pay. Unfortunately that is in the cards as it must be.
But what happens to that money? Can it go directly to the bottom 30%. No the government just wants your money, they won’t re-Distrbute
Taxation should be the same for everyone - pick a % and charge the same whether you are poor or rich - that way everyone pays their fair share!
Agree. That would be a very simple solution and very fair. They always make things so complicated.
Don't they already pay tax when they sell their stock? It's called capital gains tax. Why or how would you tax unrealized gains? that doesn't make any sense because stocks move up and down all the time
@@sten260 To administer a wealth tax on stock you'd have to pick an agreed upon day of the year to use as a snapshot (specific point in time) of a person's assets. Let's say the last day of the year for simplicity sake. At that time some/most of a person's wealth could still be held in stocks and any gains on that stock would be unrealized (i.e. not yet sold and thus not having created any realized profit or loss). The reason to tax unsold stock would be to prevent the wealthy from using the market as a shield from tax liability. While imperfect, the ability to pay substantially lower rates of taxes because you're wealthy enough to accrue most of your income through the sale of assets (capital gains tax) is the reason Warren Buffet has famously claimed he pays less in taxes than his secretary. That systemic unfairness is what the proposed wealth tax is seeking to ameliorate.
@@BrianAnderson150 but how are they supposed to pay that tax? lets say you hold 100 billion worth of stock, now you pay like 5% that's 5 billion. They would have to sell part of their company to get the 5 billion to pay the wealth tax? Slowly they would sell their company and that causes stock to drop as well. that doesn't make sense
@@sten260 Just like they pay their property taxes. I doubt very many people, especially the extremely wealthy, have so much of their wealth invested they can't pay their taxes. It's also 3% on billionaires, not 5%. If the vast majority of their wealth is invested then they'll have to plan around an asset structure with extra liquidity built in. Maybe instead of that second mega yacht they were considering buying in Milan or the French Riviera they'll actually support the country that provided them, at least partly, with their vast wealth. Edit: Problems like the one you've highlighted here are the impetus behind the construction of the world's tiniest violin. The one playing for all those beleaguered billionaires.
Nothing changes when trillions are printed. Why would this help anyone?
Based on Grover's logic that lowering the capital gains tax the wealthy people pay more then lowering it to 0% must produce the most tax revenue. The problem with that argument is mathematics. A tax of 0% on any income is 0.
I'd be for it if the government wasn't wasting money on stuff like gender studies in Pakistan.
more like if it wasn't wasting money on a ineffective military
Do you clowns ever get tired of posting the same nonsense?
@@ygolocals7672 ineffective?
RIGHT!? We could always waste our tax money on Israel so they can take over the middle east, provide themselves with free health care, education, and public services while they stock pile the weapons we pay for and we fight their wars.
This is incredible! It seems like the interviewer is thinking this is a bad idea! He admits that the billionaires who are named here paid less than 2% of their income in taxes. That is insane! Normal people pay way more! What justice is there in that?
David Gamage owned them. They thought they could hang up on him and ruin the argument by dressing it up like it’s discriminating. Bunch of hacks
No he didn't, he completely ignored the question and went on a rant about the progressive tax system which had nothing to do with the question. He was asked why not make the wealth tax higher for the extraordinarily wealthy.
We need to stop assuming corporate heads are experts, they are the ones who rely the most on the nanny state
And they’re all gonna leave!
Ok they aren't paying their fare share. Let them leave
Good riddance!
They're probably all in Monaco now. These people are wealthy enough to buy any citizenship.
@@chimbatete let them have all the fun dealing with those governments
@@calvinr.johnsonjr.9076 Not sure if these Billionaires are fun people but those governments will surely have fun welcoming them.
Uh, yeah, I guess you all missed the memo, we're beyond debates.
Uh ya I guess you missed the memo that the rich don't care what we think & our government answers to them not us. So debate or no debate, they stay rich, we stay poor.
@@llhaken yeah that's because they can get the poor to argue against themselves while they lobby to bribe politicians
@@llhaken I agree with you, exactly.
The only thing I'll add is that "my logic" is perhaps more interested in the historical language of the pitchfork than some pseudo rhetorical argument on CNBC.
Grover is a beast from hell.
Our they could just fix the currant tax plan. I guess that's asking to much. Clowns.
@Drumpf Tawrd you can call it whatever you want. I think we need to get rid of loop holes and have a flat rate for everyone. We can go back and forth on what percent.
If Governments continue taxing the Wealthy in this way, the Wealthy will leave if they can. Countries compete with eachother to attract wealth and talent. Just ask Portugal or Puerto Rico or Ireland.
Your argument is literally based in extortion. The US is the worlds wealthiest economy by far. No billionaire will leave he US economy/markets behind over a 2-3% tax on wealth, which really truly is trivial. You’ve clearly not read the plan either if you’re making this argument.
@@LD-tn6ff of course they will leave if they have to sell (!) 2-3% of their assets every year. They don‘t have those millions or even billions casually laying around
@@joshhpptz3447 are you really saying that 2% of of these fortunes aren’t liquid? And no, you can implement a one time 50% tax on any fortune someone wants to move out of this country for example. There absolutely are ways around this. Do you really think no one else has thought about your overly simplistic argument? Again, maybe you should read the plan...
@@LD-tn6ff no, every year 2-3% aren‘t liquid. And trying to tax people moving away is just making things worse.
@@joshhpptz3447 why would penalizing someone who’s trying to evade taxes “make things worse”? That’s illogical, and lacks any actual reasoning. Why? Your argument currently remains that billionaires can extort the government, and dictate how tax law effects them. That’s not only absurd, it’s blatant corruption. You’re actually arguing for corruption against your favor right now... If you’re going to use extortion as your sole argument, you can’t then criticize people for saying the government has numerous tools at their disposal to do the EXACT same thing. In fact, the government was set up for the purpose of enforcement and oversight, Not abiding by demands that only 0.01% of the population dictate... And yes, 2% of wealth for 0.01 percent of the population can absolutely become liquidated. Jeff Bezos nearly doubled his net worth this year alone from the pandemic, and you’re saying that a measly 2% of his current worth, can’t be liquidated and go towards paying taxes? That’s blatantly untrue. That’s like us saying “Ope, I can’t pay federal taxes this year during tax season because I already spent all of my money”. That’s not a valid excuse.... rich people, just like us, can expect to pay their fair share of taxes each year. It’s just not complicated buddy.
Her comment about the painting was a bit disturbing. How will they know what's in your home/homes/properties? Seems like an illegal search and seizure. Also it seems like a way to eventually be able to tax all of us this way come into all of our homes and assess all of our property. Ultimately I don't have a problem with normal increased taxation of the of the rich. I just don't agree with what to spend the money on.
Any tax that singles out a particular group pre-supposes that those people do not deserve what they have acquired. She will side step this because any such tax is unjust
For a normal painting in a normal house, no one cares, but works of art worth more than a few thousand are insured. So the government doesn't have to search anyone; people report stuff like that themselves.
It is NOT a revenue problem, it is a SPENDING problem. Finding new ways to raise more revenue is the wrong way to go about doing government. The issue is how much is being spent and why. But that is not what politicians do.
100% correct.
If we have money to give to other countries we DO NOT need to raise taxes on anyone!!! Go ahead and write a dissertation about why I'm wrong NO ONE will change my mind!!!
It is where you are wrong. The US don't GIVE... They do credit to other countries. Why do you think China 'gives' money to african countries... It is an investment t be able to sell other products. For America it would be seeds, weapons, american industry, etc. If you really want to save money the best way is to stop avoiding us companies on us territories for paying their fair taxes (like amazon with HQ2).
We spend 60% of taxes on defense. Some of that is spent on military bases in foreign countries. None of it is used to defend against invading viruses. We could spend 10% on infrastructure and this conversation would not even happen.
@@acopernic Just keep telling yourself that!!
all those rich dems that were on the screen voted for this type of tax so let them pay it, in fact why do we need to pass laws, let them just pay in the extra money every year on their own, they are allowed
lol acting like you would ever have to worry about this tax
@@ygolocals7672 i will NEVER have to worry about this tax but that wasnt my point, the rich Dems all voted for tax increases so why wait for a law, just turn over the money now, we need it now
@@jamsid33 So you admit that the tax dollars are needed, but only Democrats should pay pay them?
@@mercedesb2299 i dont believe the tax hikes are needed and i didnt vote for them, but Dems did so pay up
Got to fix the tax loopholes first
Gotta fix wasteful government spending so rich people might actually start wanting to pay tax because they might know it will go to good use
@@reterumstrict1091 I doubt that would make them want to pay more taxes... Plenty of good things to put money towards nowadays but doesn't mean every billionaire is rushing to put their money behind it.
Why do democrats only talk about raising taxes and never discuss ways to reduce the size of government? Is there anything we can cut?
Have no Idea how you can say that with our healthcare system. Healthcare should not be a business, it does not belong in the private sector, lack of governing has left of us with greatest inequality in wealth ever. The problem is that wealthy don't pay taxes, and if we can successfully tax billionaires then other countries will follow. Not saying this is the way to go haven't read the legislation like a normal person, but we should definitely be talking about it.
@@corymundt7110 healthcare is a free exchange from healthcare providers (doctors, nurses, pharmaceutical producers, hospitals, etc) to patients. How do you propose we have a fee and fair exchange without it being a business? We are far from the greatest wealth inequality ever. There was a time in the not too distant past where there were kings with palaces and the majority of people were indentured servants ruled by feudal lords. Did you know the top 10% of wage earners pay over 89% of the taxes in this country? Or that the top 1% pay over 39% of the taxes?
Like most socialist laws this has unintended consiquences... if you tax my savings 3% a year im gonna RUTHLESSLY push my buisness to get that 3% back, bring on the robots, youll see a loss of jobs at the fastest rate ever
Good. What you save in hiring costs you'll lose in sales as the middle class disappears. As usual, small business owners don't have a clue about macroeconomics.
@@credman just sell overseas
@@Wildboy789789 You'll be on a pitchfork long before then.
Professor Gamut apparently wants to give the ultra-wealthy's income a haircut
It's NOT their INCOME...it is their WEALTH. BIG difference.
This is an advertisement to NOT go to University of Indiana
Wealth tax is so stupid ! Fix the loopholes first then go from there...
W•H•A•T•S•A•P•P•+
they might actually have to do this when inflation makes it an issue. so it'll be interesting to see how much power this gives the fed. do we want our government to have that much power over the economy? idk man, this free market doesn't seem very free.
rename it to Wealth Affordable Act not tax on wealth.
Nothing will change if all the tax loop holes remain wide open
Tax them and use it to pay down our debt.
W•H•A•T•S•A•P•P•+
As an Expert on experts, I have never hear of them.
Grover is well known in Republican circles. So you know off the bat he's against taxation.
Elon musk dosen't have 5 billion to give. He only owns stock. Alot of which he can't sell.
yeah, if he sold his stock then obviously he would have sold his company and he would no longer be the owner of tesla corp
Sweden taxes the crap out of its middle class which America refuses to do. The marginal tax rate for someone making $60000 in Sweden is 52%.
How naïve are those folks who think wealth tax will work? These mega rich folks will work the system to their benefit by moving their $$ off shore and overall tax revenues will drop.
If this video doesn't have the 'illustrious' intervention of Leon Cooperman, then it is incomplete...
Mark to market valuation wealth tax is an outlandish idea for a number of obvious reasons: - there is no real taxable hard asset behind it, so it may evaporate instantly in one day like 1987 market crash without incentive to recover, it is in fact a liability creation for a taxpayer without merit of tax revenues expected for the budget - it incentivises not only tax planning, optimisation or evasion, but discourages open market information and public investing based on it as a reliable source of data - it puts the US economy, tax base, national income and currency at competitive disadvantage in the world - it creates an uncertainty with potential problems for the future of legal system, savings for retirement, markets functionality, liquidity and transparency, flows of capital and even payment system
America doesn’t need more tax revenue, they need to be spending tax revenue better. How about you stop squandering money on the military and being a sponsor for other nations.
Like these billionaires will either hand the cost down to customers or they will move outside of US. Neither will help our country.
They ain’t moving fro 3%. If they did the stupid the host said of 50%. Then yes they would
All the historical evidence says otherwise.
How would someone like Mark Zuckerberg "hand the cost down to customers"?
Not if legislation is changed. Idk what's hard to understand about it
@@credman Historical evidence says they do! or have you not been paying attention to all these companies that tried to do tax inversions? Need more and more laws to prevent people/companies from leaving.
I have a question can anyone answer . Please. My aunt has two house one fully paid for she a widow at 70 years old. . If she sell one house at a million dollar . Will she be paying a lot of taxes with this new wealth tax bill .
Far too small tax rate. It should go to 90% over 1 billion. Clearly the guy on the lower right doesn't understand how these super rich manipulate assets to exclude themselves from taxation.
That is why he said they are not making anything illegal , they are doing all kind of wrong and manipulation a man can do but they are not "illegal "
A wealth tax will tank the stock market because now Jeff Bezo's needs to unload $5b of amazon stock yearly. What do you think that does to the average middle class person who has their 401k invested in the market and earns 9%/year? hairbrain idea!
@@NanClaymore you are right
@@NanClaymore you're all 100% wrong and obviously using fake sock accounts to spew your fascist propaganda
Clearly you don't understand how stocks are valued. It is an estimate of stockholder equity, so how does Bezos selling stock to someone else affect that?
Taxing the value of wealth is ridiculous because that value is temporary, especially the value of stock. When Bezos puts his stock up for sale and no one buys at the current price, the price drops. Do the Dims then reduce Bezos' tax bill? In the meantime everyone with a 401K or IRA is losing part of their retirement fund.
On top of that, they’re talking about a transaction tax per every 1000 of securities traded. That will go over like a fart in church.
The problem is the government never talks about how they are going to be more responsible with the money they are taking. When does this creep down to the rest of us? Only a matter of time.
Grover Noquist is not the guy you bring to debate a law professor. Shouldn't they find another law professor.
We need a lvt and pigouvian tax, this would tax the rich more and allow for the poor to keep their money by getting rid of income taxes and property taxes which would allow for smaller businesses to expand and increase their wealth to allow it into the economy. And if we needed a tax on the rich we should tax pure net worth over 100 mil, this would force rich ppl to fork over money, start buying stuff or put that money into their company expanding the economy bc of consumerism, ty Keynes.
First problem is that the tax issue is viewed from revenue and not spending.
We have a problem with waste, fraud and misappropriation. It’s not an issue of having enough tax revenues
fact is that with the massive tax cut passed under the previous administration, deficits have exploded as gap between wealthy and the rest of the population has grown.
Better than everyone being closer to one another, everytime that happens every one feels poor
I agree, I would be for it too but look at how the government wastes it.
TAX WAR PROFITS and give world peace a chance.
2% LMAO gonna need to raise that!
Click bait.... No experts to be seen.
Lmfaooo
It is simple: Government Annual Revenue = 4 Trillion Government Annual Spending = 5 Trillion or more This tax doesn't even come close to solving the real problem--which is government's unbridled and wasteful spending.
He just said the way to raise revenue is to lower the capital gains tax 🤔. He can’t be serious!
I have $50,000,000 in bonds that yield 1%. She wants to charge me 2% to own them. Makes sense to me.
The number of otherwise starving kids who will sleep at night with a full stomach more than justifies taking that money from you.
@@credman wrong. They will build bridges to nowhere and enrich their corporate donors with the wealth that they have confiscated from me.
@@UnKnown-nn9rx Canned talking points you heard on Fox News aren't knowledge.
@@credman Believing that they are going to use confiscated wealth to feed hungry children is ignorance.
@@UnKnown-nn9rx Countries with the highest tax rates have the highest life satisfaction in surveys and the most favorable attitude towards government. Turns out you get the quality of government you pay for.
So, they have to liquidate stock? Then stocks fall, companies fire people, economy contracts, and the little people will be hurt. People who think this is a good idea don’t understand the implications.
Companies don't fire people because their stock price fell, genius.
@@credman Yes they do. If your company stocks fall, your ability to raise capital in the future has fallen. Meaning if you wanted to raise money to fund a new venture, it’s more difficult. There’s also the wealth effect that comes in at the macro level when people perceive their wealth going up, they spend more.
@@nicholasdaniels1306 If your stock falls, but the company's intrinsic value hasn't changed, value investors like Warren Buffett will scoop in and buy the dip. A company's stock valuation in the long run is dictated by fundamentals like revenue, earnings, and growth.
@@credman Yes. But if you have to pay a tax on your wealth, that means your stocks. Which means you have to liquidate stocks to pay for that. lol. 11 European countries tried it, didn't work. only 3 remain. Two of them reduced the tax and had it on the ballot to get rid of it. It doesn't work.
@@nicholasdaniels1306 I'm sure there's a million devils in the details. Assuming your characterization is accurate, it gives the middle class who are underinvested a chance to buy in at a discount. Warren Buffett alone has a $150 billion cash position waiting for such a buying opportunity. What a beautiful way to reverse the Satanic transfer of trillions in wealth to the top 1% that took place during this pandemic.
we already have wealth taxes in this country its nothing new, its how local governments make money, i.e. property taxes. warren is proposing a tax on stocks on bonds for the top .1 percent of the americans, which means 99.9% of the people are not affected, also keep in mind the richest americans are not paying taxes
It should be 20% just like every other American. Mega millionaires and billionaires also should not be permitted loopholes and exemptions. It will not hurt them in any way, they will still be filthy rich. Those exceptions should only pertain to poor and lower middle class. That is how we create a happier and healthier America. Fix the deficit. Improve infrastructure. The wealthy as it stands, gets every material thing in their lives for free via tax write offs.
Why does everyone say the rich have tax loopholes and no one says what they are. I would like to know them but just say they have them is not right.
I had nothing but my jeans but now I am a man of means!! Why do you hate me Elizabeth Warren?!!
About time a wealth tax. Taxing the little. Guy for al this time like a boot on our backs. 👍🏾
I just want to know the equivalent of that 3 cents tax increase if it was on the poor and middle class. Any takers?
it would be 0$ because poor people don't have any assets
HOW can there be so-called experts in a subject that are so different. there can't be an expert opinion on a subject if no one agrees with the opinion!
Lol so every expert has to agree with the next expert? Come on now.
what a poor excuse for a debate. the moderators are clearly against the tax plan and the guy opposing it gives nothing but "slippery slope" arguments. He never addresses the plan as is or discusses any opinion of the current plan. The moderate continues with this slippery slope argument saying why not 10% and then constantly interrupts the person defending while he tries to answer. and why not 10%? well that could lead to actual wealth loss from these guys (however unlikely), where as 2% wouldn't touch their net wealth. American dream is to get wealthy and stay wealthy and 10% might hurt the idea of that dream
You're not seeing clearly. Rich or Poor. It's not about the funds but the flow of money and the use of it. Tax is only a puzzle on the game. If you look some countries and rich countries like Singapore and Switzerland they have a very efficient way of government wealth distribution. Tax is only good when you know "how to use it".
Singapore also has one of the lowest tax rates
I've watched a lot of these on KZhead. One question is how are the billionares going to pay it? Example: one is worth $5 billion. $5 billion - $1 billion = $4 billion taxed at 3%. $4 billion x $.03 = $120 million in taxes. How are they going to pay it with out selling off assets? If they sell off assets, at a capital gain, that creats a taxable event as well. To sell something requires a willing buyer. If all the billionares are selling, who is going buy? This part of the wealth tax doesn't get thought out. The wealth tax is just wrong. Government needs to reduce it's spending. We should be teaching money management in schools. The people who are struggling financially are lacking a financial education. A long time ago I followed what I was told about money. I was told not to invest in stocks, too risky, I can lose my money. Instead, invest in CDs, mutual funds and have a 401(k). I found myself broke and living paycheck to paycheck. I stopped listening to the TV money managers and politicians about money. I started listening to people who were creating wealth for themselves and learned how to better manage my money. And I learned how to make the tax system work for me, not against me. I no longer live paycheck to paycheck. My stock portfolio provides dividends each month.
Hell why don't we just tax people that have over ten million in wealth and the rest are exempt? because raising taxes from wealthy will be sooooo productive
Why is Grover Norquist still being listened to? And Janet Yellen says its "unworkable"? Sounds like an unambitious boomer to me. Exactly what I'd expect some old fogey who's comfortable in her position and doesn't want to rock the boat and without any sort of sense of the bigger picture or ambition for the greater good.
Does an expert say that the wealth tax is working well in Spain? I'm from Spain and maybe he has to read something or search some information
How many almost triliionaires do you have in spain? we have ppl living under every bridge on w coast
@@joelhenderson1252 example: Amancio Ortega owner of Inditex. People in spain are moving to Madrid, there they don't have to play that tax, and the economy of that region is growing faster than the others
@@sergido4430 i could go out the door of this diner I am eating atm and send you a vid of disgusting human conditions right here in usa. the govt and media are owned by the oligarchs and the working class has been abandoned for 50 yrs. all the senators are millionaires, many hundred times over. They serve the lobbyists and the oligarchs only, not the ppl. there are more guns om the ground here in usa then any place on earth. the tinder is now here.
@@joelhenderson1252 do you think that this does not happens on Europe?? Polítics just have more money to spend with the same homeless people and the same poor people
@@sergido4430 have not been to europe since 94' and before that Berlin 87' Saw those conditions mildly in amsterdam but not in germany
Will never happen in this plutocracy.
oligarchy
No one should be able to get away with paying taxes! We all benefited from public roads schools,etc , and I been paying taxes all my life so is just fair for everyone to do the same!(EXPERTS) ??????????????????
Proposing UNrealized gains should be punishable by death.
Switzerland has a wealth tax of 0.3 % not 2% or 3%. France had a wealth tax with the highest bracket being 1.5% of your wealth. Because of it the whole economy collapsed and they got rid of it.
Ummm they will just move their money and buy their yachts and planes elsewhere! So no more tax revenue at all and think of all the jobs that would be lost! Thought of the day "Have you ever gotten a job from a poor person? Didn't think so...
This David Garbage dude is so ridiculous
I’m surprised they even know what a deficit is, considering that $1.9 trillion stimulus bill. It’s obviously not much of a concern for them if they’re willing to double, triple, or quadruple the annual deficit.
Well, let's just see how powerful those 100 or so people are, I guessing this will either sit in filibuster or get thrown out completely.
Which is why the filibuster needs to go
Norquist and Gamage both raised good points. Sorkin and Kernen are the worst. They never contribute anything meaningful. They just propagandize for Fortune 500 companies with asinine interruptions.
Politicians pass laws for millionaires not to pay taxes for years. You can’t blame millionaires for taking advantage of tax laws. Blame the politicians that have been screwing us for DECADES. Remember Millionaires and politicians are very good friends.
Most politicians are millionaires and became millionaires while being politicians.
WEALTH TAX will decrease CAPITAL INVESTMENT. It just sounds good to Democrats voting base. Taxes decrease job growth.
Ok, Let's talk about your solution. What is the solution to solve the problem with the current deficit?
@@colombiantom It’s been shown over history that decreasing corporate and personal tax rates increases revenue into the Treasury. Democrats always want to play the wealth gap games by wanting to have wealthier people “pay their fair share”. The wealthy do pay the lions share of overall taxes now. Class warfare looks and sounds good to voters.
@@focusedmessagemarketing958 That sounds like an interesting read, do you mind providing me with the references to the articles? I would really love to read that. When you say that the wealthy pay for the lions share of taxes, are we talking about percentage or are we talking amount in dollars?
@@colombiantom the solution is to cut the spending, fire some useless people from the government and cut the costs. Also don't take new loans, no need to raise taxes at all
Wealth tax is the dumbest thing i have ever heard whats next life tax
So I'm a regular worker and I have the pay about &200 in tax a paycheck. so say I make $800 a paycheck. That leaves after tax $1200 to live a month. Now if we tax the rich at the same rate. So put a couple more zeros on those numbers. Now which one is going to be just fine. All we ask for is this nation not build prosperity on the back of the low wage workers. Time to give back to the people that work there asses off for big busines.
The top 1% pay 56% of all income taxes. Theyre taxed at a higher bracket than you. Over 40% of income earner's don't pay a net federal income tax. You got it backwards.
Bit of an oversimplification as for almost all billionaires the wealth will be held in stock of businesses they founded, so they'll just have ownership of their company taken over time. I can see that damaging incentives to innovate. 1% per annum might be appropriate. I do think it's wrong the amount of income tax that's paid (in Ireland where I am anyway), but the solution is to lower taxes and reduce government spending, rather than to increase taxes on the wealthy.
"I'm on your side here" no you aren't you are jumping to extremes to make things seem like this is a tax because we feel like these people have to much money and should deal it out to the rest. The point is that someone with millions of dollars shouldn't pay less in taxes than someone who works paycheck to paycheck. Your absolute inability to grasp that concept is purely fueled by your greed not commen sense and fairness for all.
Isn’t that the point of the wealth tax. To redistribute wealth. Then why not call for a tax a lot higher than 3 percent? Sounds weak
It will eventually get there even if it starts off at 3%. Totalitarian control is always gradual. Why not 10% or 15% from the start??
@@unhombrelibre_11 Exactly! Starting with 3 percent shows how much they don’t believe in what they are purposing. Just more talk so they can stay in power
A so call billionaire pay 700 dollars in taxes 1 year i cook pizza all day and pay 4.500 don't you people think that's unfair
Because it is unnecessary. Once again it isnt about distributing the wealthys money to the poor, some may get used that way by funding food stamps but why is the bottom of our country pay more to fund things like infrastructure than the people at the top do when we all use the roads? If you are fine continuing to punch yourself in the face so the rich can pile more money in there scrooge mcduck style vaults while we pay for everything more power to you but you sound insane
I guess they've forgotten about reducing spending...especially on useless things...
Like your public programs?
@@stbhansen never wrote that.
A friend told me he did...
yep they always run deficit and try to find ways to squeeze more money of the people, but never try to cut their own costs and spending. Government is like endless money pit, no matter how much they get it's still not enough