Should billionaires pay more taxes?

Should billionaires pay more taxes? This November, Californians will vote on a one-time 5% tax on residents whose net worth is over $1 billion. The state hopes the tax will generate approximately $100 billion, which will fund healthcare programs for low-income residents. 

Current polling shows the ballot initiative is facing a close fight, with just about 52% of voters now saying they favor it. Opponents include Governor Gavin Newsom, many business leaders, and tech executives, who warn the tax will drive innovation out of the state. Already, six high-profile billionaires have left, including Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, and former Uber CEO Travis Kalanick. There’s also a billionaire-backed opposition campaign hoping to sway public opinion.

There are also federal efforts to go after the wealthiest Americans. This spring in Washington, Vermont Senator Bernie Sanders and California Representative Ro Khanna introduced the Make Billionaires Pay Their Fair Share Act, which calls for a 5% annual federal tax on the net wealth of billionaires. There are an estimated 938 people who would qualify.

Most Americans say the ultra-rich don’t pay enough, and with income inequality growing is taxing the rich the answer? Is it fair? And would it hurt the economy, or help state and federal budgets?  Today we’ll get both sides of the debate. 

Guests:

Adam Michel, Director of tax policy studies at the Cato Institute. He was formerly deputy staff director at the U.S. Congress Joint Economic Committee.

Chuck Collins, senior scholar at the Institute for Policy Studies and author Burned by Billionaires