CNBC’s Jim Cramer on Friday proposed that the United States impose a profit on billionaires following this week’s ProPublica report on how some of the richest people on the planet avoid taxes.
In recent years, billionaires including Amazon CEO Jeff Bezos, Tesla CEO Elon Musk, and businessman Michael Bloomberg, investors Carl Icahn and George Soros paid little or no federal income tax, according to the ProPublica report, citing confidential IRS data it obtained.
“They are, of course, able to avoid paying income tax. Do not avoid. But avoid. And I know avoiding is legal, and the government says you can do everything you can to avoid. I think, It needs to change, “the” crazy money “said the host of” Squawk Box “referring to the wealth inequalities that separate the nation.
“There are not billions of billionaires. Let’s come up with something for this small group,” added Cramer, who generally spoke of a billionaire watch tax. However, he described an approach that differed from the Massachusetts Senator Elizabeth Warren’s wealth tax proposal. “Elizabeth Warren talks about it in a way that I think is a little too serious. Yes,” he said.
The Warren plan, released earlier this year, is called the “Ultra-Millionaire Tax.” It would impose a 2% annual tax on the net worth of households between $ 50 million and $ 1 billion. And a 3% annual tax on the household’s net worth over $ 1 billion.
Following this week’s ProPublica report, Democratic Maryland Senator Chris Van Hollen and Democratic Virginia Rep. Don Beyer their “Millionaires Surtax” legislation, more akin to what Cramer put forward, except that the bill would tax a much broader chunk of wealthy Americans.
The Van Hollen-Beyer bill “would apply an additional 10 percentage point tax on income over $ 2 million for married couples or over $ 1 million for individuals,” according to a summary of the measure released Thursday.
Cramer also talked about a billionaire watch tax in a series of tweets Friday, saying “these revelations make me sick,” referring to the tax avoidance strategies used by the unruly in the ProPublica report.
The ProPublica article, which is expected to be the first in a series, did not reveal how the journalists got the tax records. Outlet did not respond to a request from CNBC for comment. CNBC has not independently verified the information in the report.
Later on CNBC’s “Squawk on the Street,” Cramer said, “We are not asking Elizabeth Warren to take. We do not necessarily want to confiscate. But we need to find a way to say listen, ‘We know you use avoidance. , and we do not know how to beat it. But we put a tax on it. ‘”
“Maybe you think it’s too dumb. But I’ve had it,” he said, expressing concern about the ever-growing wealth gap in America. “We can not allow this to continue any longer in a democracy.”
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