To support decrease the wealth inequality in the US, which has additional widened for the duration of the Covid pandemic, the nation earlier this week proposed the ‘Ultra Millionaire Tax Act’. The annual tax would be a 2 per cent levy on Americans with a wealth of more than $50 million and 3 per cent on wealth of more than $1 billion, affecting the wealthiest one hundred,000 American households or the best .5 per cent, CNBC reported. Based on the proposed tax, Amazon’s Jeff Bezos would owe $5.7 billion although Tesla’s Elon Musk would owe $4.6 billion in taxes for 2020. Others such as Bill Gates and Mark Zuckerberg would have to spend $3.6 billion and $3 billion respectively, based on the calculations from the Institute for Policy Studies and Americans for Tax Fairness.
Several senators such as Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont had proposed the tax. Warren mentioned the tax would raise about $3 trillion more than 10 years. The added income would go to support spend for youngster care, education infrastructure, and clean power, the report added. “We do understand the direction we’ve been going. This pandemic has created more billionaires. The people at the top are not barely hanging on by their fingernails,” Warren told CNBC. Bezos and Musk would nevertheless be left with more than $185 billion and more than $148 billion in net worth just after the tax.
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To address the increasing wealth inequality, Bill Gates has been vocal about getting a fair tax method in the US. According to Gates, the distance involving the best and bottom incomes in the US is a lot higher than it was 50 years ago, he wrote in his weblog on December 30, 2019. “That’s why I’m for a tax system in which, if you have more money, you pay a higher percentage in taxes. And I think the rich should pay more than they currently do, and that includes Melinda and me.” As of March 7, 2020, Bezos was the richest individual in the planet with a net worth of $177 billion followed by Musk with a net worth of $157 billion, Bill Gates’ $136 billion, Bernard Arnault’s $115 billion, and Mark Zuckerberg’s $one hundred billion, as per Bloomberg Billionaires Index.