Jeff Bezos Would Pay More Than $5 Billion A Year Under Proposed US Tax Plan
A proposed new tax bill could see the likes of Jeff Bezos paying billions of dollars in tax each year.
The bill, which has been named the Ultra-Millionaire Tax Act, was unveiled on Monday, March 1, and includes a 2% levy annually on wealth that totals more than $50 million (£35m) and 3% on wealth of more than $1 billion (£714m).
With these percentages taken into account, it’s believed Amazon CEO Jeff Bezos would owe $5.7 billion in taxes for 2020.
Several senators proposed the new bill, including Democrats Elizabeth Warren and Bernie Sanders.
If passed, it’s predicted the act could bring in around $3 trillion over a 10-year period. Warren has said this money would go towards child care, education infrastructure and clean energy in the US, CNBC reported.
Warren has emphasised the importance of tax following the pandemic, and believes it has exposed the wealth gap in America. As of December last year, US billionaires’ wealth has increased by an eyewatering $931 billion over the course of 2020.
The Massachusetts senator told CNBC, ‘We do understand the direction we’ve been going. This pandemic has created more billionaires. The people at the top are not barely hanging on by their fingernails.’
While Bezos would be slapped with a $5.7 billion tax bill, the retail mogul would have been left with a net worth of around $185 billion (£132 billion). These calculations come from the Institute for Policy Studies and Americans for Tax Fairness, reported The Independent.
Elon Musk wouldn’t have been far behind in receiving a hefty tax bill, and would have been required to pay around $4.6 billion (£3.2 billion) in tax, while Bill Gates would have had to cough up $3.6 billion (£2.5 billion).
Like Warren, Chuck Collins, director of the Program on Inequality of the Institute for Policy Studies, also hopes that the act would work towards bridging the evident wealth gap in America and help the country’s citizens directly.
The wealth tax on billionaires alone would fund almost three-quarters of President [Joe] Biden’s entire $1.9 trillion (£1.3 trillion) pandemic rescue package, currently pending before the Senate.
Senator Warren is confident that the bill would be reasonably straight forward to implement if it were to be passed.
Warren explained, ‘The implementation part is really a lot easier than it looks. We learned from some of the mistakes they made in Europe. This version of the wealth tax covers all of your property.’
‘It doesn’t matter if it’s held in stock or in real estate or in racehorses. Everything is covered, so there’s no point in moving property around. Also wherever you hold, it is covered, whether you hold it here in the US, [or] whether you hold it in the Cayman Islands,’ she added.
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