Ultra-millionaires Don’t Mind Extra Taxes?
A majority of millionaires support a proposed wealth tax on the richest U.S. households, according to a survey, indicating that some of these millionaires who might presumably pay those taxes are willing to pay more.
The CNBC Millionaire Survey says 60 percent of millionaires support Senator Elizabeth Warren’s proposed tax on the wealth of people with more than $50 million in assets.
According to Warren, the Ultra-Millionaire Tax taxes the wealth of the richest Americans, or roughly the wealthiest 75,000 U.S. households.
A wealth tax is levied on the total value of personal assets. It is different from an income tax.
Under the wealth tax rules, all household assets held anywhere in the world will be considered in the net worth measurement, including residences, closely-held businesses, assets held in trust, retirement assets, and personal property with a net value of $50,000 or more.
Warren noted that as all these assets are included in the net worth calculation, it will produce more revenue and reduce opportunities for avoidance as well as evasion.
Under the proposal, the wealthiest households in the U.S. would pay an annual 2 percent tax on every dollar of net worth between $50 million and $1 billion, and a 3 percent tax overall on every dollar of household net worth above $1 billion.
The presidential candidate cited an analysis by economists Emmanuel Saez and Gabriel Zucman from the University of California-Berkeley that estimates the tax on these nearly 75,000 households will generate $2.75 trillion in revenue over a ten-year period.
The survey also shows that a larger number of millionaires are in favor of an income tax rate of 70 percent on individuals with net worth of more than $10 million. Democratic Rep. Alexandria Ocasio-Cortez has floated the idea.
Further, a majority of millionaires support revoking the 2017 tax cuts on companies, according to the poll.
However, 72 percent of millionaires oppose the elimination of all tax deductions, which is a form of tax savings. These deductions include the mortgage deduction and charitable deduction.
They are also against imposing a tax on unrealized capital gains on assets owned by millionaires, a proposal made by Sen. Ron Wyden, D-Ore, in early April.
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