Tax the Rich

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That 280 billion generated by taxing the rich at 90 pct of income will solve all our problems

To estimate how much additional revenue would be generated by taxing billionaires at 90%, we need to clarify a few assumptions:

1. What is being taxed at 90%?​

• Income? (e.g., annual earnings like wages, capital gains, dividends)
• Wealth? (e.g., net worth of assets like stocks, real estate, etc.)

A 90% wealth tax would be extreme and likely unrealistic. A 90% income tax above a certain threshold is more feasible for estimation, similar to historical U.S. top marginal tax rates in the 1950s.

Assumptions for Estimate:​

Let’s assume:

• The tax is a 90% income tax on annual billionaire income above a threshold (say, $10 million/year).
• There are around 750 U.S. billionaires (Forbes 2024).
• Total billionaire income in the U.S. is estimated to be $500 billion/year, most of which comes from capital gains and dividends (which are often taxed at lower rates or deferred).

Let’s assume:

• $400 billion of this is above the $10M threshold.
• At current tax rates, they might pay around 20% average effective tax rate (so ~$80B in taxes already paid).
• At 90%, they would owe $360 billion in taxes.
• The additional revenue would then be:
  $360B - $80B = $280B/year

Caveats:​

• Behavioral response: Many billionaires would likely shift income, defer gains, move assets offshore, or use trusts and tax shelters.
• Constitutionality: Wealth taxes are controversial in the U.S. and could face legal challenges.
• Realization-based taxation: Capital gains are taxed only when realized, so untaxed gains could remain large.

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Summary:​

A 90% income tax on billionaires could theoretically raise around $280 billion per year in additional revenue, but practical and legal challenges would reduce the real-world impact.