My Novice Thoughts on Bernie Sanders' Tax Plan #3: Tax Extreme Wealth
- David H. Kinder, RFC®, ChFC®, CLU®
- Feb 25, 2020
- 2 min read
Updated: Jan 20, 2023
How the Tax on Extreme Wealth Would Work
This tax on extreme wealth would have a progressive rate structure that would only apply to the wealthiest 180,000 households in America who are in the top 0.1 percent.
It would start with a 1 percent tax on net worth above $32 million for a married couple. That means a married couple with $32.5 million would pay a wealth tax of just $5,000.
The tax rate would increase to 2 percent on net worth from $50 to $250 million,
3 percent from $250 to $500 million,
4 percent from $500 million to $1 billion,
5 percent from $1 to $2.5 billion,
6 percent from $2.5 to $5 billion,
7 percent from $5 to $10 billion, and
8 percent on wealth over $10 billion.
These brackets are halved for singles.
Under this plan, the wealth of billionaires would be cut in half over 15 years which would substantially break up the concentration of wealth and power of this small privileged class.
Under current law, the IRS is already required to assess the net worth of the wealthiest Americans when they pass away, to calculate estate tax liability. A federal wealth tax would require the IRS to make the same assessment on an annual basis for the wealthiest Americans. Steps would also be taken to streamline the process for purposes of the wealth tax.
For assets that are difficult to appraise, the Treasury Department would have the option of allowing taxpayers to have appraisals done periodically instead of annually. The Treasury Department would establish the average rates of appreciation for several classes of assets. Those appraised only every few years would be assumed to appreciate in the intervening years at the average rate established for their designated class.
Assets placed in a trust would be treated as owned by the grantor of the trust (by the person giving assets to the trust) until that person’s death.
This one scares me, because I believe it would DECIMATE the economy in our country. Yes, we have problems, but ONLY "taxing the rich" won't work. This video with Tony Robbins was recorded 8 years ago in 2012 when our total national debt was 'only' $15 TRILLION dollars. He outlines how we could OBLITERATE the rich... and what that would look like... back in 2012.
Watch this. It will certainly open your eyes.
Do you want to PAY those taxes? I help my clients to challenge any political administration's right to tax everything you do successfully so that YOU are the primary beneficiary of your life's work, not the banks, financial institutions, Wall Street, and the Internal Revenue Service.
