Millionaires in the US want to pay higher taxes. Yesterday they published an open letter in which they appeal to Fr. “Immediate” and “Permanent” paying them taxes. Reason? They argue that this will help revive the economy after the coronavirus pandemic.
Millionaires want to pay more
“When Covid-19 attacks globally, millionaires like us have a crucial role to play to heal the world “
– 83 authors of the letter write together. Among them are well-known businessmen, among others co-founder of Ben & Jerry and British filmmaker Richard Curtis.
They say that to overcome the crisis, “We need money and we will need it in the coming years.” They also believe that overcoming the recession can “Take decades” and lead to poverty “Half a billion people”.
“The problems caused and revealed by Covid-19 cannot be solved by charity, no matter how generous it is. Heads of government must take responsibility for raising funds by permanently raising taxes on the wealthiest people on the planet, like us (…), from whom we must adequately finance our health systems, schools and security. “
– they add.
Recently, the Organization for Economic Co-operation and Development (OECD) announced that global GDP decline will amount to at least 6% this year. However, if there is a second wave of the epidemic – as much as 7.6 percent. So maybe imposing more taxes on millionaires makes sense?
A year ago, a group of American billionaires, headed by George Soros, Facebook co-founder Chris Hughes, heir to the fortune of the founders of the Hyatt hotel chain and Disney’s media empire, published a similar open letter in which they called for a tax on fortunes such as those that they belong to them. Well-known investor Warren Buffet and Microsoft founder Bill Gates have been calling for billionaire taxes for years.
Seemingly it sounds beautiful and noble. Only the reality can be different. Even though the band of rock millionaires from U2 is known for promoting the idea of charity, but as a company, it has benefited from tax breaks in Ireland for years. Bruce Springsteen works similarly. The US Bard also called for higher tax thresholds, but ultimately it turned out that they would not necessarily affect his own assets.
The pointlessness of such ideas is also pointed out by free-market journalists, who note that raising taxes for higher earners actually hits the middle class and does not reduce the assets of billionaires, because they use numerous legal tips that help them to bypass increases.
However, higher taxes may be good for cryptocurrencies. It is possible that some people will start running away in BTC to somehow hide their savings or multiply them due to increases in the rate.