To help in aligning the wealth inequality in the United States, which has broadened further during the COVID-19 pandemic, the country has proposed the Ultra Millionaire Tax Act earlier this week. This proposal will cost players in the market like Jeff Bezos, Elon Musk, Mark Zuckerberg, extra billions each year.
According to CNBC, the annual tax that would be imposed on the wealthy people of America would be based upon the wealth slab of
- More than $50 million: 2%
- More than $1 billion: 3%
This will be affecting the richest 100,000 American households which form the top 0.5% of the entire population.
On the basis of the proposed tax, if we calculate, Amazon’s Jeff Bezos would have to pay a sum of $ 5.7 billion in taxes while on Tesla’s Elon Musk, it would cost $ 4.6 billion in taxes for 2020. If we take more billionaires into account and look at what they would have to pay, Bill Gates and Mark Zuckerberg would have to pay an amount of $ 3.6 billion and $ 3 billion, respectively. All these calculations are made by the Institute for Policy Studies and Americans for Tax Fairness.
This tax is proposed by several senators, including Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont. As per Warren, the tax would raise about $ 3 trillion in about 10 years. And if we adhere to the report, this lump sum revenue generation will help pay for child care, education infrastructure and clean energy.
While speaking to CNBC Warner said that “We are aware of the direction that we have chosen to move forward. This pandemic situation has produced more billionaires. The people at the top are not even hanging on their fingernails.” Even after all this tax Bezos and Musk would still have more than $ 185 billion and more than $ 148 billion in net worth after tax respectively.
To address the issue of growing wealth inequality, Bill Gates has been vocal about having a fair tax system in the US. As per Gates, the distance between top and bottom income in the US is much greater than it was 50 years ago. In one of his blogs from December 30, 2019, he wrote “You have more money, you pay a higher percentage in taxes. And I think the rich should pay more than they currently do and that includes Melinda and I.”
According to the Bloomberg Billionaires Index, by March 7, 2020 Bezos became the richest person in the world with assets of $ 177 billion, Musk, following in the next place with assets of $ 157 billion, then Bill Gates with $ 136 billion, Bernard Arnault with $ 115 billion and Mark Zuckerberg with $ 100 billion.
Based on the data of Forbes, Jeff Bezos, Elon Musk, Bill Gates, and Mark Zuckerberg, who were the four richest people in the country at the end of 2020, would have paid in 2020 under the Wealth Tax proposal, according to the ATF and IPS’ Calculation as:
Jeff Bezos – $5.7 billion
ATF and IPS said that Amazon CEO Jeff Bezos, would have paid a sum of $ 5.7 billion in taxes by 2020. At the end of 2020, his fortune amounted to be $ 191.2 billion, according to Forbes data.
Washington legislators have also proposed imposing a 1% tax on the state’s billionaires. Bezos will pay approximately $ 2 billion per year under this tax.
Elon Musk – $4.6 billion
ATF and IPS said that the tech billionaire, mind behind the success of Tesla, SpaceX, Neuralink and Boring Company, would have paid an amount of $ 4.6 billion.
According to Forbes data, at the end of 2020, Musk’s real-time net worth was $ 153.5 billion, as his wealth increased more than six times in the last 10 months.
Bill Gates – $3.6 billion
ATF and IPS said Microsoft founder Bill Gates, who had $ 120 billion fortune according to Forbes by December 2020, would have paid $ 3.6 billion in his taxes.
Mark Zuckerberg – $3 billion
ATF and IPS said Facebook CEO Mark Zuckerberg would have paid a property tax of about $ 3 billion for 2020. According to Forbes, by the end of 2020, they were valued at $ 99.9 billion.
