COLORADO SPRINGS, Colo.– This week, Washington officials are debating a tax on billionaires in order to cover the costs of President Joe Biden’s spending bill.
Is this a plausible solution? Tatiana Bailey isn’t quite sold on the idea.
“It’s really quite stark. A poor average household with 2 million in household wealth, barely even shows up on the graph,” Bailey said.
Bailey’s graph pictured above compares in billions of dollars increments how dramatically the spread of wealth is across just a few individuals.
Bailey said that she thinks that potentially some individuals could be taxed, but that she finds it doubtful that it will work.
“What if we already have some market pressures…or exert some stronger market pressures, maybe through social media, maybe through legislation?” Bailey asks. “In terms of maybe just raising some of the wages of these individuals and the benefits and so forth.”
Bailey goes on to mention how some workers are more likely to return to the workforce if childcare is subsidized, taking the pressure off of some individuals to look after their children full-time in light of the COVID-19 pandemic.
“Now you’re talking about tens of millions of people not only participating in the labor force and becoming taxpayers, but those lower wageworkers making more money and therefore paying a higher amount in taxes overall, that is actually going to move the needle on the deficit and on tax revenues probably even just as much if not more than taxing the 700 wealthiest billionaires,” Bailey said.
The United States became primarily a capitalist nation in the 1900s and asking important questions like these has the capacity to shift and alter how we perceive the developed capitalistic society we have now.
Next week on the Economic and Housing Update, Bailey will highlight some statistics and go into further detail utilizing an article that she published on taxation of billionaires in light of our current economy.