Warren Buffett and Jamie Dimon are pushing for higher taxes on the wealthy to fund tax breaks for lower-income Americans. The two CEOs argue that a “millionaires tax” is necessary to address the federal deficit and promote fairness in the tax code. While some billionaires, like those mentioned by Buffett and Dimon, do not pay high taxes due to their investment income, the debate highlights the complexities of taxing the ultra-wealthy.
A recent report suggests that the top federal income tax rate in the US stands at 37% for individuals earning over $626,350. However, qualified dividends and long-term capital gains are taxed at a lower rate of 23.8%, benefiting private equity and hedge-fund managers. The American Tax Foundation points out that most taxation is based on income rather than total wealth.
The proposal faces opposition from Congressional Republicans, who have traditionally resisted raising taxes on high earners. Nonetheless, the idea of a “millionaires tax” continues to gain traction as a way to fund tax breaks for lower-income Americans. Buffett and Dimon’s call for higher taxes highlights the need for policymakers to find creative solutions to address the federal deficit while promoting fairness in the tax code.
Source: https://www.indexbox.io/blog/warren-buffett-and-jamie-dimon-advocate-for-higher-taxes-on-the-wealthy