Taxing the super-rich: Could a 'billionaire tax' work?

The so-called wealth tax is a politically divisive economic policy, but one that is regaining attention amid rising inequality and shifting demographics.

U.S. President Joe Biden in his 2024 State of the Union address took aim at the uber affluent, saying he would impose a targeted “billionaire tax” on America’s wealthiest.

It follows an earlier G20 meeting, in which finance leaders explored plans for a global minimum tax on the world’s 3,000 billionaires.

Colombia, Scotland and the U.S. have all proposed wealth taxes in recent years, joining the likes of Switzerland, Norway and Spain in imposing taxes specifically on the super-rich.

And even some of the world’s wealthy are backing such calls. “This is about the wealthy contributing more to the society,” Phil White, retired entrepreneur and member of the Patriotic Millionaires group, told CNBC.

But can such a policy work in reality, and is it likely to take hold? Watch the video above to learn more.

#CNBC #WealthTax #G20
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[CNBCi]

Would you like a wealth tax in your country? Why or why not?

[MrMountain]

Wealth tax won't work until it is global. Rich people can flee easily.

[MrSlm]

I think it's a stupid idea. Just close current tax loopholes that allow them to legally evade paying taxes on things... But they won't, because politicians use the same loopholes.

[personnesenki]

Never trust anyone who calls for higher taxes when they refuse to pay the current full rate, or voluntarily overpay.

You will get the bill. Guaranteed.

[DisinterestedObserver]

One problem with wealth taxes is they’re almost certain to follow the path of the US income tax. The US income tax originally only taxed the highest earning 3 or so percent of the population at what today would be considered a ridiculously low rate. Once the politicians got that passed, they began to lower the threshold so eventually everybody’s income was subject to taxation and they kept upping the tax rates. The same will happen with wealth tax, the politicians are currently proposing to start at the very top with a “small” only 2 cents per dollar but one can be sure over time they’ll keep reducing the floor so it won’t only be billionaires and millionaires paying and they’ll be increasing the rate. Don’t trust the politicians or the think tank experts.

[alessandrovasconcelos]

The problem in the world is CORRUPTION, Mainly in Brazil, don`t need to tax Rich, need is stop corruption!

[jazilzaim]

Wealth taxes have never worked in the real world and they never will most likely. Governments have been doing tax hikes for decades and it just gets worse and worse with terrible use of budgets

[DeadCat-]

Reaganomics was a total disaster. We should do the exact opposite!


Tax wealth, not working people! .our tax system is backwards! Why would you tax a PRODUCTIVE worker while cutting taxes for people who just sit back and collect a portion of the value of other people's labor?

[amithpatel]

Why don't governments look at operating efficiently. They spend lavishly and then want to recover that money from general public ... Government bodies have to function as a private institution...

[jakemarsee]

Out of the pockets of the rich and straight into the pockets of politicians. Wake up people

[cfltheman]

I do wonder what they call those who do the opposite of Robin Hood. Rob from the poor and give to the rich.

[JVNFM]

the super rich who want wealth taxes can simply donate their money to the government without this tax and they still don't do it, I wonder why

[MalavitaOfBB]

If you're rich and want to be taxed more just give money to charity that actually help people and not to a wasteful government...

[albertinsinger]

Trouble is your taxes never go to the poor. It goes to big government and those people have lots of perks and 1 st class travel and even early retirements and can never lose their job. In the US, government jobs pay double what you can earn in the private sector. Your taxes never go to the poor.

[rjona]

Wealth tax was what was used before income tax came to tax the middle class. All Roman senators in Classical roman times had to have a certain income so they can contributed to the Roman Treasury. Feudal lords contributed to the kingdom's number one expense which is war. Americans had a revolution because they were taxed without representation in British government. If you want to tax the rich be prepared for them to want to exert more influence in government

[samuelnunes]

Why would they give money to government that uses it so inefficiently? If they want to help, Donate to trusted organizations that will do a more meaningful impact for those in need.

[testing]

Everyone's always generous and entitled to other people's money.

[rwrae]

One day you will run out of other people's money.

[kevinhsu]

Billionaires can live anywhere in the world so unless you have a wealth tax that covers every single country in the world, you won’t be able to tax them. On top of that, all billionaires have very diversified assets ranging from art to jewelry to real estate to stock and bond. The valuation of these assets fluctuates so pinning down the exact worth is going to be very difficult. Furthermore, most billionaires put their assets in charitable trusts and live off the income from that tax free more or less (at least the American ones). So unless you close down all charitable trusts, I don’t think you will be able to tax billionaires efficiently and effectively in the US.

[michayng]

I think even if you tax the super rich, you cannot solve the problem of poverty. Most of the money from any wealth tax would not go towards lifting poverty.
And it take more effort than giving money to end poverty long term.