When it comes to the USA, it has more billionaire than the rest of the world, and that’s why people from other countries like to come in here and earn the right amount of money. However, now the time has changed because due to the political pressure the wealthy people are now getting looked from a different angle, and that’s why some politician is thinking of taxing heavily on the wealth of such people. However, this is not the first time some politician is considering the use of wealth tax because in 1999 Donald Trump also said that the country needs to charge wealth tax on wealthy people to diminish the debt level of the country. Currently, the gap between the rich people and poor ones is at its peak because in the USA 1% of the rich people constitute more than 99% of the total income. Currently, some politicians are thinking of charging 70% tax on the wealthy people’s asset to help poor people.
Donald Trump in 90s proposed the idea of charging extra taxes on the wealthy people living in America, but his vision was different. Instead of charging 70% he suggested that the government levy a tax rate of 14.5% on the wealth of a person. According to Trump the threshold limit for wealth tax should be $10 million because he thinks a person who earns that much amount of money can easily bear the taxes imposed on them. However, if we looked into the current scenario, then some political leaders are discussing about putting a threshold limit of $50 million.
However, one of the significant drawbacks of wealth tax is that its levied on the assets of an assessee and nowadays it’s becoming more comfortable for a person to find some ways to avoid getting taxed. Even though now Trump is against the idea of wealth tax one shall not forget in the late 90s he proposed the same idea which many politicians are offering now.
Jeffrey is acting editor in chief of AmazingNews24 with over seven years of experience in the field of online news under his belt. Jeffrey has worked with multiple media houses and is currently leading a team of journalists, sub-editors and writers through his entrepreneurial endeavours.