Bernie Sanders, the famously anti-billionaire senator of Vermont, and Invoice Gates, the world’s seventh wealthiest individual with an estimated internet value of $138.5 billion, make an unlikely pairing—particularly in terms of debating revenue inequality. Regardless of their variations, the duo sat down collectively to debate wealth and taxation for the most recent episode of Gates’ new Netflix collection What’s Subsequent? The Future with Invoice Gates.
“A number of of my associates raised an eyebrow after I instructed them I used to be going to satisfy with him,” mentioned Gates in a weblog put up on Wednesday (Sept. 18) discussing his assembly with Sanders and the present, which aired the identical day. “In spite of everything, Sen. Sanders is the primary U.S. Senator in historical past to go on file saying that billionaires shouldn’t exist,” he added.
Sanders maintained this stance throughout their dialogue, calling the existence of ultra-wealthy people “unacceptable” and “obscene.” Gates, in the meantime, advised that billionaires ought to voluntarily donate their wealth however disagreed on outlawing them altogether. “However once more, I’m biased,” conceded the Microsoft (MSFT) co-founder. Gates, who has given away some $77.6 billion by way of the Gates Basis, has lengthy been a champion for billionaire philanthropy and in 2010 helped create the Giving Pledge, a marketing campaign that urges the ultra-wealthy to donate nearly all of their wealth.
How a lot ought to the ultra-rich be taxed?
Regardless of their totally different stances on banning billionaires, each Gates and Sanders are advocates for larger taxes on the wealthy. “I’m amazed that the wealthy aren’t taxed considerably greater than they’re,” mentioned Gates through the episode. “Should you elevate taxes a good bit, there needs to be sufficient to considerably elevate the social security internet, which isn’t as well-funded as I’d make it,” he added. The centibillionaire mentioned his superb tax system would go away the rich with a 3rd of their present fortunes, which might give Gates round $46 billion given his present fortune. Sanders, in the meantime, mentioned he “would go so much additional.”
Gates’ feedback echo statements he made earlier this month in an interview with The Unbiased, the place he voiced his want for extra progressive tax insurance policies. “If I designed the tax system, I’d be tens of billions of {dollars} poorer than I’m,” he instructed the outlet.
In a 2019 weblog put up, Gates advised growing taxes on giant investments by the rich and urged the U.S. authorities to lift the capital positive factors tax to equal taxes on labor. Whereas these counting on wage and hourly work are taxed at a most of 37 p.c, “the wealthiest typically solely get a tiny proportion of their revenue from a wage; most of it comes from income on investments, reminiscent of inventory or actual property, taxed at 20 p.c in the event that they’re held for greater than a 12 months,” he mentioned.
Throughout his dialogue with Gates, Sanders pointed to the same concept proposed by Warren Buffett in 2011 when he criticized the truth that he was taxed lower than his staff. “That isn’t what the American individuals need to see,” mentioned the senator.
Earlier this 12 months, JPMorgan Chase (JPM)’s Jamie Dimon—estimated to be value $2.3 billion—mentioned that larger taxes on the wealthy would assist the nation carry its debt down whereas growing financial spending and progress. “You’ll perhaps simply elevate taxes a bit, just like the Warren Buffett-type of rule,” Dimon instructed PBS, referring to a tax rule borne out of Buffett’s feedback that dictates no households incomes greater than $1 million yearly ought to pay a smaller share of their revenue in taxes than middle-class households.
