
Tim Danahey: A real wealth tax, a simple alternative to the income tax that most will love
Radio Host Tim Danahey sent me a note that gave me pause. If we could make sure all Americans understand this, we could force the hands of politicians on the wealth tax.
Tim Danahey’s wealth tax calculation.
See full episodes here.
Here is the note I received from Tim.
Dude,
I was playing with wealth tax numbers on the back of scrap paper and wanted to spark some thoughts for you. But, first, I want to make two statements:
- I am not a credible source or economist
- I presume to get rid of the current U.S. tax code in this little note
U.S. Household Wealth in 2019 was $96.1 trillion and in 2020 it was $130.2 trillion
Jeff Bezos net wealth was $177 billion in 2019 and $189 billion in 2020
The U.S. Federal Budget this year is $4.9 trillion
If we taxed the net increase in wealth at 10% and the ending net wealth at 2%, we would collect $6.2 trillion in taxes.
We would have a $1.3 trillion surplus
If a household income was $100,000 in 2020 and household wealth in 2020 was $200,000 ($100k for net equity, $50k for investments and/or retirement, $50k for anything else) and it was $170,000 in 2019, then:
This household’s total Federal wealth tax would be $7,000 (less than half of what an income tax would be)
Jeff Bezos would pay $5 billion in wealth tax and net $7 billion in increased wealth and be worth $182 billion instead of $189 billion.
He paid, effectively, no tax in 2020.
We have a $1 trillion deficit.
The concept needs work but it seems viable. The more you have, the more you need government to protect it.
I know the defenders of Bezos (today’s Washington Post’s op ed which is, not so coincidentally, owned by Bezos) say much of Bezos’ income was reduced by charitable giving. Well, if you want a country’s policies determined by fiat whereby a few wealthy people decide what institutions receive their alms, then go for it. It doesn’t work. Hong Kong citizens rebelled against that concept prior to its absorption into China. To illustrate, I’m sure the Sackler family’s donation of Chinese Art to their named museums was tax deductible, of interest to themselves, and of no direct benefit to overall society (although we should acknowledge a small indirect benefit to culture).
I wish someone beside Elizabeth Warren would begin a zero-based tax code. Carry nothing from the existing tax code and re-write from nothing.
Nuff said. Thanks for tolerating my rants.
Terrible Tim
My Books, “NEW! How to make America Utopia: Take away the economy from those who rigged it,” “It’s Worth It: How to Talk To Your Right-Wing Relatives, Friends, and Neighbors” & “As I See It: Class Warfare: The Only Resort To Right Wing Doom” support (1) communication techniques & (2) our Progressive message delivery.
Please join our YouTube channel to get the numbers up to open up some more features and reach more folks. Gracias
More Stories
Joy Reid's Righteous Criticism of Ron DeSantis Triggers Furious Fox News Misogyny 😱
The easiest way to ascertain what or who Fox News is most afraid of is to observe what they attack...
SURPRISE: Texts Show Sean Hannity Was Taking Orders From Trump Team to Overturn the Election
For the past sixteen months Donald Trump has been viscerally obsessed with having decisively lost the presidency to Joe Biden....
Trump Reveals He Talked to Putin About Invading Ukraine, But Stiffed Them on Military Aid Anyway
It's inevitable that if you let Donald Trump talk long enough, he will eventually incriminate himself. And at his cult...
The FOX News BS Factory Tries to Bury Biden's Accomplishments in a Pathetic Piece of Propaganda
After 26 years of devoted service to the Republican Party and the uber-conservatives of America, no one is going to...
PROJECTION: Tucker Carlson Spews Disinformation to Slander Barack Obama for Opposing Disinformation
Former President Barack Obama visited Stanford University on Friday to deliver a profound and timely address on the dangers of...
YIKES! Trump Admits His Dreams of Dictatorship, While Bragging About 'Acing' a Dementia Test
The authoritarian aspirations of Donald Trump have been all too apparent to anyone paying attention for the past few years....