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patriotic millionaires
NYT Gives 'Whining' Megadonors a Platform to Push Harris Against Taxing the Rich
"I'm shocked, shocked, I tell you that Wall Street billionaires and Silicon Valley tech bros are trying to convince a presidential candidate to abandon her commitment to tax them," said the chair of the Patriotic Millionaires.
Aug 30, 2024
The United States' "paper of record" gave ultra-rich investors and corporate executives a platform on Thursday to sound off against Vice President Kamala Harris' support for a tax on unrealized capital gains, a popular proposal that has stirred howls of complaint from Silicon Valley elites whom Harris used to represent in the Senate.
The New York Timesstory—headlined "Donors Quietly Push Harris to Drop Tax on Ultrawealthy"—quotes billionaire investor Mark Cuban; Aaron Levie, CEO of the cloud storage firm Box; Charles Myers, the founder of Signum Global Advisors; and others who have backed Harris' presidential bid.
"In my interactions with them, the key is she focuses on her values and is not an ideologue about any particular program," Cuban told the Times, which described him as one of the donors close to Harris who doesn't "believe she is that committed" to taxing billionaire wealth.
"From what I've been told," said Cuban, "everything is on the table, nothing's been decided yet."
Levie, who has donated $30,000 to Harris' campaign, said Silicon Valley leaders he has spoken with about the proposed tax on unrealized capital gains see the idea as "quite punitive."
"There's optimism that this can't possibly be real," said Levie. "Most people are waiting to hear from the Harris campaign. Is this a real proposal that is actually being pushed for—or was this something that was inherited from Biden?"
"The only thing at stake here is the remarkably fragile egos of billionaires who are on the verge of realizing they might not be saving civilization for anyone, including themselves."
The Times noted Friday that a group of wealthy Harris supporters known as "VCs for Kamala" found in a survey of its members that "roughly 75% of respondents agreed with the statement 'taxing unrealized capital gains will stifle innovation.'" The group includes billionaire LinkedIn founder Reid Hoffman and billionaire investor Chris Sacca.
The Patriotic Millionaires, a group of rich Americans who support higher taxes on the wealthy, issued a statement Friday criticizing both the "whining" megadonors and the Times for handing them a megaphone to attack efforts to rein in billionaire tax dodging.
"I'm shocked, shocked, I tell you that Wall Street billionaires and Silicon Valley tech bros are trying to convince a presidential candidate to abandon her commitment to tax them, and using their own alleged brilliance to justify it," said Morris Pearl, the chair of the Patriotic Millionaires. "I admire their chutzpah in claiming that taxing unrealized capital gains will stifle innovation!"
"Claiming that making a billionaire pay taxes on their second billion will reduce innovation is as absurd as the rooster claiming the sun won't rise without his crowing," Pearl added. "The billionaires I know were all highly motivated to earn their first billion. The only thing at stake here is the remarkably fragile egos of billionaires who are on the verge of realizing they might not be saving civilization for anyone, including themselves."
The Patriotic Millionaires also suggested some adjustments to the Times headline:
Some (Silly/Misinformed) Donors Quietly (although not actually all that quietly; it was reported on the front page of the NYT after all) Push Harris to Drop (Modest Compared to What it Should Be) Tax on Ultra-Wealthy While Other (Much More Sensible and, yes, More Patriotic) Donors Loudly Push Billionaires to Drop Opposition to Common Sense.
The Harris campaign has voiced support for the tax proposals outlined in President Joe Biden's most recent budget blueprint, including a tax on the unrealized capital gains accumulated by individuals with net worths exceeding $100 million—a portion of the nation's upper class that contains fewer than 11,000 people.
Under the nation's current tax structure, billionaires are able to dodge taxes by never or rarely selling stock positions, which are not taxed until they are "realized."
Gabriel Zucman, an economics professor at the University of California, Berkeley and a leading advocate of a tax on billionaire wealth, has applauded the Harris campaign for embracing the proposed levy on the unrealized capital gains of the ultra-wealthy.
In a May op-ed in the Times, Zucman noted that U.S. billionaires paid a lower effective tax rate than working-class Americans for the first time in the nation's history in 2018.
"The idea that billionaires should pay a minimum amount of income tax is not a radical idea," Zucman wrote at the time. "What is radical is continuing to allow the wealthiest people in the world to pay a smaller percentage in income tax than nearly everybody else."
"In liberal democracies, a wave of political sentiment is building, focused on rooting out the inequality that corrodes societies," the economist added. "A coordinated minimum tax on the superrich will not fix capitalism. But it is a necessary first step."
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'Not a Good Deal for Working Families': Sanders Votes No on Tax Bill
One campaigner said that "Democrats need to think bigger, aim higher, and hold corporations accountable instead of enabling obscene corporate tax dodging in exchange for breadcrumbs for working families."
Aug 01, 2024
Continuing months of progressive opposition to the bipartisan Tax Relief for American Families and Workers Act, U.S. Sen. Bernie Sanders on Thursday voted against advancing the bill and highlighted how it would give tax breaks to major corporations.
The bill passed the House 357-70 in January, shortly after it was negotiated by Senate Finance Committee Chair Ron Wyden (D-Ore.) and House Ways and Means Committee Chair Jason Smith (R-Mo). It would revive a version of the expanded child tax credit (CTC) that, as Sanders (I-Vt.) noted in a statement Thursday, "reduced childhood poverty in America by over 40%."
"I cannot, in good conscience, however, vote for the tax package that is being voted upon today," Sanders, who caucuses with Democrats, explained. "At a time of massive wealth and income inequality, we should not be giving tens of billions of dollars in tax breaks to some of the largest and most profitable corporations in America."
"Incredibly, this legislation would hand out a $2 billion retroactive tax break each to Lockheed Martin and Raytheon—some of the most profitable defense contractors in the world," he pointed out. "Further, at a time when artificial intelligence and automation threatens to displace millions of American workers, this legislation could provide billions of dollars in tax breaks to companies like Amazon, Google, Verizon, and Facebook to replace workers with machines or robots."
As Sanders detailed:
Three years ago, as part of the American Rescue Plan, Congress passed an expanded child tax credit that put $300 a month per child directly into the bank accounts of tens of millions of families. This provision alone lifted nearly 4 million children out of poverty.
The tax bill on the floor today is only one-tenth the size of the child tax credit in the American Rescue Plan and would only last for three years. When all is said and done, this bill would provide at least $3 in corporate tax breaks for every $1 in tax cuts for working families with children. That is not a good deal.
Stephen Prince, vice-chair of the Patriotic Millionaires and founder of Card Market, was similarly critical on Thursday, saying that "this was a bad deal. But remarkably, it was killed by a handful of Republicans who believe they can win even more payouts for their ultra-rich donors next year. Democrats need to think bigger, aim higher, and hold corporations accountable instead of enabling obscene corporate tax dodging in exchange for breadcrumbs for working families."
"As the 2025 tax battle gets underway, we should be on guard for efforts to further enrich corporations and the ultrawealthy via the tax code," Prince warned. "Democrats must grapple with the reality that Republicans and their billionaire donors are not acting in good faith. They must not waste next year's opportunity—the expiration of the 2017 Trump tax scam—by entrenching a broken system. The goal should be a fundamental overhaul of our tax code so that it delivers for American workers."
"Anything less is a failure," he continued. "Republicans continue to sell the snake oil of 'trickle-down' economics to Americans. Let me be clear: At some point, they will have to acknowledge that the only way to fix our economy and our country is to raise taxes on the rich. Their favorite pet project of cutting taxes for rich people is ruining the country and leaving behind a mess for which our children and grandchildren will never forgive us."
The Senate's procedural vote that blocked the Tax Relief for American Families and Workers Act from moving forward mostly fell along party lines. A total of eight senators from both parties—including Sen. JD Vance (R-Ohio), former President Donald Trump's running mate for the November election—did not participate.
Three Republicans—Sens. Josh Hawley (Mo.), Markwayne Mullin (Okla.), and Rick Scott (Fla.)—joined all Democrats present as well as Independent Sens. Angus King (Maine) and Kyrsten Sinema (Ariz.) in supporting the legislation, though Senate Majority Leader Chuck Schumer (D-N.Y.) switched his vote to "no" so he can bring the bill up for a vote again.
Sen. Joe Manchin (I-W.Va.) voted against advancing the bill. The soon-retiring ex-Democrat previously partnered with Republicans to prevent the extension of the CTC expansion enacted during the Covid-19 pandemic. After the aid to families ended, the child poverty rate more than doubled in 2022, according to U.S. Census Bureau data.
Since the bipartisan bill—which is backed by the White House—was announced in January, progressives in Congress have been urging Democrats to "stay at the table and demand a better deal for our children," in the words of Rep. Rashida Tlaib (D-Mich.), who was among nearly two dozen House Democrats who voted against the legislation.
Other House progressives who opposed the bill earlier this year included Democratic Reps. Jamaal Bowman (N.Y.), Cori Bush (Mo.), Greg Casar (Texas), Maxwell Frost (Fla.), Alexandria Ocasio-Cortez (N.Y.), and Mark Pocan (Wis.).
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'Grave Mistake': Yellen Under Fire for Opposing Global Billionaires Tax
"To reject the very idea of a global minimum tax on billionaires is to cede control of our economies and our democracies to oligarchs and plutocrats," warned one progressive critic over the U.S. Treasury Secretary's position.
May 21, 2024
U.S. Treasury Secretary Janet Yellen is being taken to task by progressive critics after coming out Monday in opposition to a proposed global tax on billionaires at an upcoming Group of 7 nations meeting where the measure is on the agenda.
Speaking to the Wall Street Journal, Yellen told the newspaper that while the Biden administration broadly supports more progressive taxation, in which those at the top of the income and wealth scale pay higher rates, the U.S. will not back a plan—put forth by Brazil and backed other G20 leaders earlier this year—that would set a minimum international rate for the planet's ultra-wealthy.
In her remarks, Yellen said the "notion of some common global arrangement for taxing billionaires with proceeds redistributed in some way—we're not supportive of a process to try to achieve that. That's something we can't sign on to."
The proposed 2% global tax on the assets of the world's billionaires, backers of the idea argue, would be a way to curb the international race to the bottom on taxation by hampering the ability of those with vast fortunes to move their money from bank to bank and nation to nation as a way to avoid paying their fair share into public coffers.
The EU Tax Observatory, which helped formulate and backs the proposal, estimates that the 2% levy on the billionaires would raise $250 billion in annual revenues.
Given President Joe Biden and Yellen's support for a global minimum corporate tax and recent political messaging on the need to compel corporations and the wealthiest to pay higher taxes domestically, Morris Pearl, chair of the advocacy group Patriotic Millionaires, said opposition to a global billionaire tax was confounding.
"We are mystified by Secretary Yellen's comment suggesting she has rejected the G20 proposal for a global minimum tax on billionaires," Pearl said. "Her comment is starkly at odds with President Biden's stated goal of compelling billionaires to pay their fair share; it is at odds with the growing consensus on taxing the ultra-wealthy; and it is at odds with her own history of being a champion of international cooperation on tax matters."
Successful implementation of a billionaires tax, reports the WSJ, "would allow countries to raise more in tax revenue to finance other priorities and use the tax code to reduce income inequality, which has widened sharply in recent decades."
Floating the idea back in January, Brazil's Finance Minister Fernando Haddad said, "In a world where economic activities are increasingly transnational, we have to find new and creative ways to tax these activities [and] thus direct the revenues to common global endeavors such as ending hunger and poverty and fighting climate change."
According to Pearl:
Secretary Yellen's statement seems to stem from concerns that the revenue from such a tax would be"redistributed." However, the proposal would not institute a global tax that is then globally redistributed. The blueprint for this proposal is the OECD agreement for a global corporate minimum tax that she herself championed, which enables individual governments to determine how the taxes collected within their borders are spent.
If her concerns are simply about redistribution, she should clarify that ahead of her meetings later this week. But to reject the very idea of a global minimum tax on billionaires is to cede control of our economies and our democracies to oligarchs and plutocrats. In short, a wholesale surrender to the political influence of the ultra-rich would be a grave mistake.
Oxfam International calculated earlier this year that a 5% wealth tax targeting multimillionaires and billionaires in G20 countries could raise around $1.5 trillion a year in revenue globally. Such funds, the group said, would be "enough to end global hunger, help low- and middle-income countries adapt to climate change, and bring the world back on track to meeting the United Nations’ Sustainable Development Goals (SDG)—and still leave more than $546 billion to invest in inequality-busting public services and climate action in G20 countries."
Over the weekend, economist Gabriel Zucman, one the key architects behind the billionaires tax proposal put forward by Brazil, said "the super-rich will fight" such measures "tooth and nail," but "yes—we will have, one day, a coordinated minimum max on the super-rich. And perhaps sooner than you think!"
If he's correct, it doesn't look like Secretary Yellen or President Biden have received the memo.
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