Bloomberg would pay $3 billion less under his wealth tax than under Sanders plan

[Galraedia]

Democratic presidential candidate Mike Bloomberg says he would pay more to Uncle Sam under his plan to raise taxes on wealthy Americans. What the former New York City mayor hasn't said: He'd pay as much as $3.5 billion less under his wealth tax than he would under similar proposals from Senators Bernie Sanders and Elizabeth Warren, two of his rivals for the party's nomination. Bloomberg's plan would also generate far less government revenue.

Bloomberg, who released his tax plan last week, said the proposal targets the "very rich." That includes him: Bloomberg is worth an estimated $61 billion, according to Forbes.

Much of that fortune is tied to Bloomberg LLC, the global financial data and media empire he founded four decades ago. The candidate owns 88% of the company, which generated an estimated $3.8 billion in income last year alone, according to industry consultant Douglas Taylor. And his nearly 90% ownership stake in the media enterprise entitled him to about $3.3 billion of that income stream.

Bloomberg would certainly pay significantly more in taxes under his tax proposals than what he is paying under the current tax code. But that's not unique. All of the major Democratic presidential candidates are proposing tax plans that would raise taxes on the wealthy.




Read more: https://www.cbsnews.com/news/bloomberg-wealth-tax-compare-sanders-buttigieg-warren-biden/

[George II]

1. And? He's still proposing an increase that would tax him billions more than today....

Why tie that to Sanders' or Warren's proposals trying to make his proposal look bad?

If you compare them, his proposal has a MUCH better chance of being passed and enacted.

[Galraedia]

5. He would keep Trump's corporate tax rate.

What's more, even outside his proposed wealth tax, Bloomberg's broader tax plan could save him and his company millions versus what he would pay under plans proposed by his rivals. For instance, Bloomberg would maintain the corporate tax rate at 21%, which President Donald Trump and congressional Republicans lowered from as high as 35%. That 2017 change saved Bloomberg's company roughly $550 million last year. All of the other Democratic presidential candidates have proposed some roll back of Mr. Trump's corporate tax cut.

https://www.cbsnews.com/news/bloomberg-wealth-tax-compare-sanders-buttigieg-warren-biden/

[Blue_true]

6. Actually, Bloomberg would raise the top rate to 28%. I prefer

30-32%, but I would accept 28% over the current 21%. I believe that anything over 35% in the modern economy is counter-productive because it would kill new business that are profitable, but don't have a lot of cash to throw around (the tax rate of 28% instead of 35% or higher would give them a little more room to reinvest in employee salaries, plants and equipment).

[Demsrule86]

10. What should happen is a capital gains tax...really rich people don't get salaries.

And gambling should not pay better than working.

[Celerity]

11. He proposes to raise long term capital gains and also change

the inheritance tax reset in terms of asset valuation so the heirs of the ultra rich cannot skate out on paying a fair tax rate on capital gains they inherit.

This OP is also wrong, he does raise the corporate tax rate up to 28% as well. Google it if you doubt this.

https://www.fool.com/taxes/2020/02/03/the-bloomberg-tax-plan-what-you-need-to-know.aspx

1. Restore higher income tax brackets for the wealthy

The tax cuts in 2018 cut the top rate for high-income taxpayers from 39.6% to 37%. Bloomberg's plan would restore the 39.6% tax rate.

2. Add a new tax for multimillionaires

Bloomberg would also create a new tax for those making $5 million or more annually. The 5% surtax would apply both to employment income and to investment income, with the threshold affecting fewer than 1 in 1,000 taxpayers nationwide.

3. Raise long-term capital gains tax rates for millionaire earners

Currently, long-term capital gains get preferential treatment compared to most other types of income, with top-income taxpayers paying a maximum of 20% on gains from sales of investments held for longer than a year. The Bloomberg plan would tax those long-term capital gains at the same rates as other income for taxpayers making $1 million or more in income annually.

4. Boost taxes on transfers at death

Bloomberg is proposing several changes to the tax scheme that affects people at death. He would lower the amount of the estate tax lifetime exclusion amount, which currently lets most estates with $11.58 million or less in assets avoid tax entirely, by an unspecified amount. He would also end the practice of having the tax basis of investments reset at a person's death, essentially forcing heirs to pay greater amounts of capital gains tax upon selling inherited assets.

5. Increase corporate tax rates

The 2018 reforms cut top corporate tax rates from 35% to 21%. Bloomberg suggests splitting the difference and raising the corporate tax to 28%. The candidate would also work toward changing international tax rules to make it tougher to avoid U.S. tax in favor of lower-rate tax haven countries.

[BootinUp]

7. Not doing the full rollback is completely unacceptable!

Big mistake to nominate this guy.

[Autumn]

2. $3 billion is a lot of change.

[uponit7771]

3. Oh, so that's the reason Bloomberg is running

[jimfields33]

4. I hate to stick up for Bloomberg

But, he will not need as much revenue due to not having free medical for all, free college, and other changes sanders is proposing. So why have more revenue then needed to run the country.

[Demsrule86]

9. All these new Biden supporters...really people?

[Demsrule86]

8. You are not a Biden suporter so I fail to understand why you have Biden's picture...but whatever.

A wealth tax is unconstitutional in my view and won't ever happen in a milliion years. Bloomberg's plan could actually be enacted if we get the Senate.