According to a summary of the bill released by the Patriotic Millionaires—an advocacy group that helped craft the measure—the wealth tax would have four brackets:
- 2% for all wealth between 1,000 and 10,000 times median household wealth;
- 4% for all wealth between 10,000 and 100,000 times median household wealth;
- 6% for all wealth between 100,000 and 1,000,000 times median household wealth; and
- 8% for all wealth over 1,000,000 times median household wealth;
"In the unlikely event median household wealth fell below $50,000 from its current level of about $120,000, the thresholds would be fixed at $50 million, $500 million, $5 billion, and $50 billion respectively.”
The legislation would also require at least a 30% IRS audit rate on households affected by the new wealth tax.
$100k is 150% of median household income. It is the boundary between 3rd and 4th quintiles of income.
People are not overtaxed. They are dramatically undertaxed.
https://dqydj.com/average-median-top-household-income-percentiles/
Rich people do pay taxes on money removed early from 401(k)s, which is why they don’t do that.
Warren Buffett doesn’t pay income tax because he doesn’t earn income.
The billionaires don’t have a billion in cash, they don’t earn a billion dollars a year. They hold assets worth that much.
Taxing wealth is the only way to combat the wealth gap.
First off you’ll need to define “combat the wealth gap.” Difference between high and low isn’t really a relevant thing.
$100k is a bad metric because somebody making $100k in the Bay Are or New York is basically in poverty. I make over $100k and I’m not well off at all. Not even close. And I’m not bad with money, have zero debt, save 15% in the 401k no kids and still things are tight.
Yeah federal taxation doesn’t work based on “I should be able to put 15% into my 401(k) and live where I want.”
$100k is not basically poverty in LA/NY or everyone making under $100k would be below poverty and that’s more than half the population (median household income - that is, generally 2 working adults - of 68k in NYC, and NYC is more expensive than LA).