Warren Buffett and Jamie Dimon want billionaires to pay their fair share to Uncle Sam. But a ‘millionaires tax’ would likely affect all the wrong people

The most famous investor in America and the head of the strongest Wall Street Bank had a clear message to Washington: imposing taxes on us more. Both called Warren Buffett and Jimmy Damon, executives at Berkshire Hathaway and JP Morgan Chase, respectively, to raise taxes on the wealthy as a matter of fairness – and to address the prosperous federal deficit.

The Republic of congress, who traditionally opposing the walkers taxes on the wealthy, is said to study the alleged millionaire tax, confirming how President Donald Trump’s popular appeal has turned the party. While the proposal faces opposition from many prominent Republicans, this step has been offered to help pay the costs of tax exemptions on advice, additional wages, and social security benefits, as well as extend the provisions in the 2017 tax discounts law.

However, this argument is unlikely to make the increase in income taxes on the owners of the high watchers of billionaires such as Buffett, Elon Musk and Jeff Bezos much more to the government. This is because superficial individuals accumulate with an overwhelming majority, most of their wealth from investment income, and not from wages and salaries like most Americans. Meanwhile, the functional cuts in the audit department in the service of internal revenues and turmoil in the upper part of the agency means that avoiding taxes may become easier.

In other words, the millionaire tax is likely to take place “probably bankers, doctors, lawyers, professional athletes and executives who run the mill instead of the such as Musk, Bezos, Buffett and Mark Zuckerberg. In fact, legal strategies can allow them to pay little at all.

To return to it, Bizos, the founder of Amazon, did not pay a year at the federal income tax from 2007 and 2011 despite being billions of billions, according to the analysis of his tax revenues obtained by the ProPublica In 2021, Bezos is now the second most dangerous in the world with a net value of $ 195 billion, according to the Bloomberg billionaires.

The CEO of Tesla El Musk, who leads the road with a net of $ 304 billion, managed to work in 2018. PROPUBLICA did not find any of the 25 richest people in the country and did not avoid many taxes over several years.

Oracle, Omaha, has constantly raised this issue, noting that he was undergoing a tax rate less than his secretary Deby Posanic.

Busanic became somewhat unintentionally, directed tax inequality in the United States, and in 2011, President Barack Obama suggested what is called the Buffett base, which aims to increase the actual tax rate on millionaires to 30 % by eliminating specific tax exemptions and support. A draft law was eventually banned by my Republic.

You will not reduce the tax of the millionaires

Six states – California, Connecticut, Maine, Massachusetts, New Jersey and New York (alongside Washington DC) – “millionaire taxes”, are all focused on income. At the federal level, a higher rate of 37 % applies to individuals with at least $ 626,350. According to the Republicans in Congress considered an increase in this rate to 40 % for those who achieve about 370,000 dollars.

Currently, the proposal appears to not affect qualified profits and long -term capital gains, which currently reach a rate above 23.8 %. Special shares also benefit from imposing taxes on this rate of reserved benefits, which also represent the largest part of the compensation for investment capital managers and hedge fund managers. Trump indicated that he wanted to close the vulnerability, which estimates the estimates of the Congress budget, the Federal deficit, at $ 13 billion until 2034.

Some argue that the superior is already subject to high tax rates. The American Tax Corporation, a conservative tendencies, says that a study conducted in 2024 from the Treasury shows that the richest individuals in the country have had effective tax rates of up to 60 % when calculating the income of companies and real estate taxes at home and abroad, in addition to government and local taxes.

“The study of the treasury was undoubtedly assigned to prove that the wealthy pay a relatively small amount of income taxes compared to their total wealth,” said the head of the Scott Hodge Tax Corporation. “But most governments, foreign and local individuals, taxes and companies are on their income, not their wealth.”

It is possible that the simple millionaire tax will not change that.

This story was originally shown on Fortune.com

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2025-04-19 11:05:00