The following is from a “new report” from Senator Warren’s office. Of course, it’s not a report, but merely rehashing well known information.
Our current tax system does little to tax America’s wealthiest individuals. Income taxes target income, and standard income is not how the richest of the rich build their fortunes. For example, Jeff Bezos earned $81,840 in salary in 2020, a barely noticeable figure when compared to his $179 billion in wealth. That’s exactly why the Ultra-Millionaire Tax targets wealth. Applying Senator Warren’s wealth tax to five of America’s richest individuals alone, the report shows, would have raised over $9 billion dollars in 2020.
Standard income is not how anyone builds their wealth. We save, invest and accumulate wealth through the growth in value of those investments. Unlike Bezos, we don’t start new industries that employ thousands and change the lives of a big chunk of the people on earth.
The amount of money is vastly different, but the principle is the same. It’s just a matter of time before the wealth accumulated by more average Americans becomes a target for taxation. Consider that the alternate minimum tax (AMT) and even the inheritance tax were initially designed to impact a relatively few very wealthy Americans, but were allowed to grow in their application.
Note in her statement she uses the billions of Bezos as an example, but the text says “Ultra-Millionaire” whatever that means. [as proposed it means $50 million].