In a decisive move to ensure that the richest give back more to the country, Senator Elizabeth Warren will propose a bill which if passed will see 100 richest Americans losing up to $78b annually according to Bloomberg.
The wealth tax by the Democrat Senator from Massachusetts and few Democrats will be met with a great deal of criticism and may eventually not get the required vote.
However, if it eventually goes through, should the federal government adopt the same strategy for increased revenue?
The bill, called the Ultra-Millionaire Tax Act, would require households with a net worth of more than $50 million to pay 2 percent of their wealth every year. A 1 percent surtax would be added for those with a net worth in excess of $1 billion.
That would mean Amazon founder Jeff Bezos, the richest person in the world, would face an additional $5.4 billion in taxes if the bill were signed into law this year, according to Bloomberg News.
Tesla CEO Elon Musk would pay an additional $5.2 billion, Bill Gates would pay $4 billion more and Facebook CEO Mark Zuckerberg would see his tax bill increase by about $3 billion.
The present tax system in Nigeria is complicated. Most of the burden fall on final consumers in what economists will call a multiple tax system.
From goods bought in the market to salary earners, VAT and subscriptions payment, everyone seems to be the rich guy being taxed. An average Nigerian is a tax payer without tax receipt.
The legislation, which is unlikely to pass Congress, would affect tax payments starting in 2023.
However, adding more taxes for Dangote and other billionaires in Nigeria like Elizabeth Warren’s Wealth Tax isn’t a problem, but the impact of the revenue generated in a country where corruption thrives. By the way, the richest folks will always beat the system if over-taxed.
The burden of wealth tax in any country will always go back to ordinary workers and consumers. 1 to 2 per cent isn’t supposed to be a great deal, but of course, human desire for more in a Capitalist economy will make it look like its huge.