Bill Gates wants rich people like him to pay more in taxes. The billionaire and philanthropist noted in a blog post that “I’ve been disproportionately rewarded for the work that I have done.” adding that it is just fair for the rich to pay more in taxes.
The blog post, which is titled, “What I’m thinking this New Year’s Eve”, was posted on New Year’s Eve and it seems to show Gate’s readiness and support for higher taxes on wealthy individuals.
He noted, “The rich should pay more than they currently do, and that includes Melinda and me.” Gates also said that the US has updated the tax system many times in the past and there’s an opportunity to do so again, making sure that taxes are raised for rich people like him.
Gates believes that such a move would help build a “healthier, more equitable world for all.” Gates is the second richest person in the world with a net worth of about $113 billion. He is only second to Jeff Bezos, the CEO and founder of Amazon, who is worth roughly around $116 billion.
Bill argues that the best way to deal with the government deficit right now is to increase levies on the rich. Right now, the US government collects up to 20% of GDP in taxes but total government expenditure is roughly 24% of GDP. This means that the government is spending more money than it’s able to rise. Additionally, Gates is proposing a redistribution strategy. ‘
He feels that the money collected from some of the wealthy Americans can be redistributed to the less fortunate members of society through comprehensive social programs. This according to him will go a long way in reducing the wealth gap and creating an equitable society in the future.
Gates also notes that the government should step up in taxing capital. Right now, a huge chunk of the taxes collected by the IRS comes from taxing labor. Gates believes that there is a huge chance of raising even more money by taxing capital as well.
Most wealthy Americans generate a bulk of their resources through investments and capital appreciation. If the government can find a way of taxing that, then there is likely to be a huge jump in taxes collected. Gates also notes that the government must increase estate taxes.
He is also calling on congressional action to seal off the loopholes in inheritance tax laws in an effort to increase collections in the long run. Gates joins Warren Buffet in calling for “voluntary taxes” for the wealthy.
The two feel that, even though the law can explicitly dictate how much in taxes the wealthy need to pay, it doesn’t have to end there. If they want to pay more than the required legal threshold, they should be free to do so.
The idea of increasing taxes for the wealthiest Americans has been floated by several Democratic presidential candidates including Elizabeth Warren. The Trump administration has also been accused of offering tax relief to the rich through its GOP tax reform law that was passed a few months ago.