What do you think about California's proposed tax on billionaires?

[msc545]

A measure on the November ballot, Proposition 40, would assess a one-time tax on California residents with a net worth of at least $1 billion. Since billionaires do not pay taxes and instead continuously borrow money, with the loans backed by their large assets, the tax seems like a step toward fairness.

[purplepoppy]

It's tricky because billionaires have got the government by the short and curlies. Any threats to tax them more tend to be met with threats to pull jobs out of the area and a reminder of how much tax they already pay.

I'd be looking at how they're generating so much wealth overall, are they using loopholes to avoid fair payment, are they paying workers a fair wage or the bare legal minimum, is the wealth being generated legally or in that grey area.

People say wealth trickles down, but how much floods out of the area before it gets the chance?

[Danzigdawson]

Billionaires should be the target of a worldwide cooperation effort to eradicate them. The problem is that when they're about to get taxed, they'll just take it along with them somewhere else.

Every single country in the world should participate in an effort to tax the shit out of the ultra-rich and eliminate fiscal paradises.

In the meantime, measures like this one are just better than nothing. It will bring in much needed tax revenue, but the problem still exists.

[emeraldsaphire]

Billionaires do pay taxes. That's why they move when the taxes in an area get too high, or they just move their assets around to reduce their tax burden. I don't know much about this tax, but if it's high enough, the billionaires will just move. Which is not something Cali needs right now.

And even if billionaires didn't pay taxes. Who cares? if you think it's unfair, shouldn't you make it so everyone doesn't pay? If I got robbed, my thinking wouldn't be "It's unfair that my neighbors didn't get robbed." Are you so full of greed and envy that you are willing to cause your neighbors to lose their jobs just so Jeff Bezos pays a little more in tax?

[msc545]

Now, what you don't seem to understand is they don't pay their fair share of taxes. What they do instead is borrow money against their assets and live on that money. That's a different way of doing it, and it's entirely legal, but it's not taxable, so everybody's getting a little resentful that they've got all this money and they don't have to pay any taxes on it.

I don't really care if they leave. They're not going to take your businesses with them. I would welcome it if they did leave. They don't bring anything additional to the community except some strife.

[slatyb]

I get a lot of value from Amazon. I only go to the supermarket for comestibles. Nearly everything else I order from Amazon because it takes about 30 seconds, it's cheaper, it arrives the next day, and they have the exact item I want so I don't have to search the shelves.

[msc545]

@slatyb I do the same thing, and I get a lot of value from them as well. I'm not running around in the store or anything like that, and I don't think I pay, particularly, more at Amazon than I do at the store.

[slatyb]

Many items are cheaper from Amazon -- Amazon-branded facial tissues and paper towels are less expensive than Kleenex and Puffs at the supermarket, Tom's toothpaste, razor blades (Atra), etc.

[emeraldsaphire]

Doing a quick Google search. Jeff Bezos paid 2.7 billion in just federal income tax in 2024. That's not including social security tax, state income tax, sales tax, property tax etc. What should it be? 4.7 billion. 5.7 billion. None of this is fair, it's his money. He's entitled to every penny of it, as are you to every penny you make.

Also, your loan income idea makes no sense. If he takes out a loan. He has to pay it back, plus interest. Unless he plans on taking out another loan to pay off the earlier loan.

You should care if they leave. They are members of their communities; they go to grocery stores, pay local taxes, use the roads, and send their kids to school. and pay billions in state taxes. If they move, they won't take all their jobs, but they will take many. Not to mention most billionaires are philanthropists and in general are really nice people. They are the most productive members of our societies. That's why they are rich.

[msc545]

You have absolutely no idea how the finances of these people actually works. They have no earned income and therefore no tax. I don't know where you're getting your information about how much tax they've paid, but I assure you if not, paid what they are supposed to pay. Since as you point out there are members of our communities then I expect them to support the social order just like the rest of us are expected to support the social order. If that costs them a lot of money then that is their problem and not mine. They don't get special dispensation just because they are rich and yet they actually do get special dispensation at this point.

[emeraldsaphire]

They do pay taxes, billions in fact. But you are so greedy and jealous you don't even bother to spend 5 seconds googling "how much does X pay in taxes"

[msc545]

. Google always tells the truth so I'm certain you're right.

[Ill_made_Knight]

Yeah... anything that pulls revenue in from the greedy devils I suppose. Seen a lot of discusssion as to how you actually go about "taxing the rich" for the reason given. Gotta be a way.

[Ill_made_Knight]

One thing that needs to be done for certain (unrelated to the question) The ceiling on contributaing to Social Security needs to be raised. Currently your contributions to FICA stop after earning something like $185k in a year...

[slatyb]

Complex... In general I'm not in favor of taxing unrealized capital gains. Eventually all those billions will be returned to the public in estate tax or charitable giving.

[msc545]

0 there are about 10,000 loopholes designed to beat the estate tax. You must be kidding about charitable giving. Do you seriously think that billionaires give a shit about charity? I'm sorry wait they do when it's a tax deduction but other than that they don't.

[DryGermanGuy]

https://www.youtube.com/watch?v=JqWcmLtNN2E

[slatyb]

Eventually they near the end and have no need for it. Many create foundations, e. g. the Gates Foundation.

[Alex-Snow]

A lot of the billionaires pay less pay less tax then many middle class people. I say go for it and tax them

[Sevenpointfive]

if people were better we wouldn't need taxes at all. we need the IRS to go after these people.

[msc545]

They aren't necessarily violating the law any more than anyone else, but what they are doing is, instead of paying taxes, they are not showing any earned income by borrowing against assets to live. That presents a problem because doing that is not taxable. We need to close that loophole.

[Sevenpointfive]

i agree.

[IknowthatIdontKnow09]

that seems fine to me

[Anonymous]

Let me guess 110%, socialist standard

[canamlusciouslad73]

LOVE IT !!!