Sen. Elizaeth Warren (D-Mass.) joins 'Squawk Box' to discuss the state of wealth tax, why she believes the wealthy should pay their fair share in taxes, her two-cent wealth tax proposal, and more.
You could provide all that if we had a grip on our ever increasing debt burden. The money raised from a 2 cent wealth tax wouldn’t even come close to what they could do if they just had some fiscal responsibility from the trillions of dollars they already tax us with
@@bucketofampz from the books I've read & knowledge I know of most politicians get a base salary of 6 figures. Then u got book deals . Which can be very Lucrative if u got a big name like a ex president or a MTG & or Lauren bober or Ron. And speaking fees . & Most when they leave government end up on defense boards or Lobbying
Taxing unrealized gains is insane! Also, these criminals cannot balance the budget they already have, if you think they’ll magically stay within their budget when they get more money, you’re part of the problem.
@@jacobwatson1818 stealing your wealth through inflation is criminal. Stealing your gains before they’re yours would also be criminal. Putting our country $34 Trillion in debt is criminal, if you add on social security and Medicare liabilities, we are in $240 TRILLION in debt. They’re fleecing their pockets and you’re paying for it in the form of inflation. It’s criminal and most people wont ever know why they’re broke even though they work 60-70 hrs a week. You’re not supposed to know how money works.
You're part of the problem. The problem is the wealthy buying politicians to enact laws that allow them to get richer and shift more cost and tax burden onto you and me, assuming you are not one of them. Billionaires can afford to pay more and should pay more.
Let’s reduce the size of the government and save a lot of cash with that. Also, how much the big companies generate in tax through their massive employment count because a few very rich people have worked 24/7 for decades building an empire while those politicians chose to be a politician as a career.
She is the perfect example of our need for term limits . We the people need to force these elected officials to serve a term limit of 3 years . That allows them to live with the rules that they force upon everyone else .
So basically you support the rich people while probably living Patriot to paycheck, like the other couple of million Americans. I'm glad you aren't in congress
People worth $50M have more than enough money to support themselves, children, grandchildren etc. in luxury for their entire lives, even after a 2% wealth tax. Doesn't seem that barmy an idea in principle, it'd just be a difficult thing to implement.
That is not the only thing she is saying tho. Its like getting a loan on your stocks. It is a stupid kind of bubble. If your gains are unrealized, then you don't get a loan for those unrealized gains either. Or you get 30% of those unrealized gains. To give 100% loan on something that fluctuates in price, is horrendous. You have to realize the USA economy is living too much on credit and this particular thing is a big reason. Your income, credit score (ability to pay load back), criminal history and your savings should be the main factors considered for giving a loan.
@@vidhyanandcs when lenders give mortgages they factor in a person's assets, which could include a 401k, which has unrealized gains. will we make this illegal?
@@johnyjsl9219She isn’t trying to fix anything. The wealth tax she is suggesting wouldn’t make a dent in what the government spends. She knows that. It’s all BS. Now… ask her how she earned $80 million as a senator. Also… if democrats really wanted to fix the problem, they had 2 years of total power with Obama to get it done and 2 years of total power with Biden to get it done. They didn’t. Notice how they only talk about it when they don’t have the power anyone. Same with Medicare for all. They only talk about it after losing power. But ya… democrats are for the poor. 😂😂😂. The only person that actually helped the middle class and the poor was Trump. That is why they hate him so much… “Oh… his tax cuts only helped the rich.” Ya… you keep telling yourself that. 😂
so what happens when the stock prices fall after paying the taxes for unrealized gains, do they get a tax refund or get tax credit for years? I guess math is too hard for congressman
I harvested 90k in losses this year on crypto alone and regained most of my positions back. So yeah it can work for even us plebs. Still I ask my orginal question about a loophole of unrealized losses @@jackv.527
I couldn't finish this video. Elon musk paid the most taxes of every US citizen a few years ago. School teachers/fire fighters pay very little taxes if anything due to the large standard deduction. How about look at the federal government expenses? And further distorting the actual cost of higher education will make it more expensive as demand will go up and supply stays the same.
She likes misleading the American public. She knows full well taxable realized gain % is far higher. If she disagrees with deductions, then start taking some of those away AND/ OR add get rid of tax free step ups in basis
Well, why is that surprising? He was the richest man in the world. Why wouldn't he, in absolute dollars, pay the most than almost everyone else. If that is where all the money is, that is where most of the tax will come from. But the issue isn't just the raw absolute dollars, it is the proportion of overall income. Just as $10 means different things to a person who only has $100 as opposed to $10,000,000, if you pay 30% of your income in taxes but someone else pays 15% of their income, the fact that in raw dollars the person who paid 15% might have been more dollar doesn't really mean they are taxed more than the other person. It's relative to the individual. Secondly, when it comes to wealth, the vast majority of Americans net worth, ie their wealth, is easily subject to tax: income, sales, payroll, property, etc. Most people work, and most people make salaries below the payroll tax ceiling, so all of their wealth is taxed. So for the vast majority of Americans all of their wealth is taxed. But, if you have so much capital gains, enough that you thrive off simply borrowing against it, you can get around having your everyday dollars subject to tax. I'm not really sure how that is suppose to work in the long run for any society.
@@jcf2322Do the math… implementing the wealth tax she proposes wouldn’t put a dent in what the government spends. She knows that. It’s all BS. Now… ask her how she earned $80 million being a senator…
@@chingron what do you mean “wouldn’t put a dent” in what the government spends? A dent in what? More broadly, if that’s where the money is-and it is-generating tax revenue from that source would generate a lot. I think we should have a more broad tax base, with more redistribution over the course of the individual’s life rather than the redistribution to others. That’s what makes the tax system so different in Nordic countries-and why they oppose immigration-as it’s taxing high earners and giving it back to them in social services directly.
Her premise assumes this wealth is sitting around in a vault like Scrooge McDuck. There's downstream impact; taxes need to be paid and these assets mostly sit currently in investments. These investments would need to be sold, etc. ... So many bad ideas and I'm not a billionaire!
@@powerbottomboi5255 High personal taxation can have an impact on entrepreneurs. Tax policy affects the incentive to innovate that create new jobs and taxpayers that pays senators salary. When income tax rates are high, it can reduce the profits that entrepreneurs gain from their innovations. As a result, some inventors and entrepreneurs may choose to move to countries with lower tax rates to maximize their returns1.
In most states, we're already taxed more than once, so what's another tax. Fed and State tax on your income and then taxed again when you use it (sales tax, gas tax, fees. etc). What's another tax? If assets go down, maybe the government might say "Let's entertain the idea of a $3K wealth/asset loss carryover if they have over $50 million in wealth/assets." The idea of a wealth tax is going to go down in flames.
She is the worst. The tax code isn't the problem, nor is wasteful government spending. No, it's America's wealthiest citizens. They're the problem. Okay, Pocahontas.
"2 cent wealth tax"? This is a politician manipulating language. Who would object to a "2 cent wealth tax"? Oh, you mean 2% of every dollar. And yet she stated (to Cooperman I believe) that she doesn't believe Billionaires should be denied their social security benefit because that's a sacred pact between our government and its citizens. She's awful.
Even if people borrow against their equity holdings, which anyone can do, that is not income. Eventually, it has to be paid back. When that happens there is a tax event as income is realized in order to repay the debt. That Warren does not want to wait for that to happen and demands the govt gets its cut now, just shows how greedy she and the govt is. The problem with budget deficits and govt having enough money isnt a revenue problem. Tax collected is at the highest ever. The problem is that they want to spend more and more and more. There is not enough money for them. And when you protest that you want to keep your own money, then you the greedy one for not paying your "fair share", whatever that is .
Agreed. Keep in mind though lower tax rate does not mean lower taxes; I'm sure he has paid more taxes than many of us have...combined. Do we want more of him contributing to our country's tax revenue or more of her?
why oh why do we have to highlight new tax discussions when the government should be justifying new spending versus cost cutting like everyone else has to do! When she gives up her lavish retirement then she can talk
Although her focus is on the importance of paying taxes, she seems completely unaware or unappreciated of the fact that Elon has paid more tax than anyone in the history of our country; not only that she seems to wish he doesn't exist. Under that scenario, we would need 1M of her equivalent to replace the tax contribution one Elon makes...while he breaths the same amount of air she does...and spews out less. Well, he probably spews out as much as she does.
She is a racist, and her predominantly Wall Street elitist backers raise further concerns. There are also allegations that she has falsely claimed Native American heritage, and some argue that her public persona is inconsistent with her true beliefs, suggesting that she only portrays an anti-elite and non-racist image for the camera.
If they tax unrealized gains, us lower class investors are screwed. Just get rid of Tax-deductibles for billion and millionaires. Easy as that! If its truly charity they'll donate b/c its the right thing to do not b/c they get tax breaks.
@@jobunaga4178 Initially, income tax was targeted at the wealthy, with only a small percentage of the population required to pay. Over time, tax rates increased, and income brackets were adjusted, leading to a broader base of taxpayers. Same for property taxes. Give an inch and they'll take a mile.
I wanna say something so so bad. It’s killing me.she really really needs to be quiet. And I’m being nice. I don’t wanna go to jail. I’m finna blow a gasket.
A wealth tax to increase the general coffers for more out-of-control spending without detailed, transparent focus on how new wealth tax funds would be spent is simply a money grab that will increasingly worsen. Flat 2 percent above 50 million becomes 3 percent becomes graduated levels of wealth, etc. Let's not go down this slippery road. Also, Elon Musk sold TSLA shares, took out loans, and convinced investors to buy Twitter. He paid a huge tax for that event. Bezos is also selling shares to fund his startups, so he's going to pay a huge tax, too.
So crazy how is she in congress? How about we talk about all her inside tradings instead? We can start there before taxing unrealized gains also you mean to say, if you have a house and it appreciates in value then you need to pay the tax on that even if you dont sell?
@@jackv.527 I don't have to be a billionaire to know a thing or two. If they were to implement this, do you think it will only apply to billionaires? Wake up! billionaires has a way to escape this, we don't.
I wish we have none of these rich people in our country contributing to our country's tax revenue and more of her. Both our country and tax revenue would be much better off. Just learned EM paid $11 billion in taxes in 2021; Sen. Warren should give him back his tax money and tell him to take it elsewhere and just leave. JB already left Washington for Florida; Sen. Warren should also give him the nudge...out of the country altogether.
And I'm extremely surprised that you picked Elon Musk cuz he actually does pay his taxes way more than any other of the billionaires you really aren't very intelligent Elizabeth
I always hear this anecdote about borrowing against stock. How is the liquidity generated to pay back the loan? At some point there has to be taxable income or a realized gain?
Has Faux-cahontas ever apologized for taking some poor native American's place at the university? Maybe she and fellow pretendian, Buffy Sainte-Marie should perform a duet.
None of what she wants to spend money on would reduce the deficit. That’s not what’s on her mind. Like all Democrats, she wants to transfer wealth from those who produce to those who vote for her.
She is incorrect. 50 percent of people in the US pay NO tax and some get money back and pay no tax. The upper middle class are the payers. A flat tax starting at say 40k would be most fair.
Hard? The fact is you can not compete. You are a loser. I work construction and everyday I see immigrants with zero education making themselves rich running businesses. You can't compete with that! lmao.
Becky lied. The value of your home IS assessed every year and property taxes go up or down based on that value (at least in TX). As Sen Warren pointed out...we do tax unrealized gains AND...those complaining about "my" money ...yeah...you're NOT a Billionaire so give us a break. Tax the Wealthy!!!
She even whines on national TV. This is ridiculous. They spend 2 trillion on Afghanistan and lost it all, now they want to tax the people that bring us products we love to pay for their mistakes?
But but, Bozos has dickrockets a huge yacht, and amazon algos that delete or reject negative reviews on poor quality overpriced junk. We get the cheap junk fast so we can have instant gratification, while obtaining it in the most lazy way possible. He is providing unmeasurable service to society and deservs a tax credit equal to half the GDP. He really should just be crowned "king of the world". Poor folks are obviously the hurdle to the success of this nation.
Having said all that, I think Warren should ask her for profit college donors to fund "forgiveness" of half of the student loans, the students themselves need to pay the rest. I like what the hosts had to say, but EW is hypocritical and shallow in her thinking. Taxing unrealized gains, if even possible, will just give the big investment banks and hedge funds another angle to play against the populace. Having taxpayers bail out and subsidize extortionary schools is ridiculous.
I take a huge risk in the stock market. God forbid my stock appreciates and now I have to pay taxes on gains I don't truly have? What happens if it then depreciates, does she care to address that?
I love how she says 2 cent tax to make it seem minor. It is 2% on unrealized, which would be nearly 4% after being taxed on realizing gains just to pay the tax on the unrealized. Add in a conservative inflation rate of 2% and they would need to see a 6% return annually just to break even. Imagine when they drop the threshold down to the point where it affects average people living in homes that have increased in market value whom will need to sell and downsize. We can’t tax ourselves out of national debt, we need reduced government spending to do that.
This is such a different kind of bubble. Its like getting a loan on your stocks. It is a stupid kind of bubble. If your gains are unrealized, then you don't get a loan for those unrealized gains either. Or you get 30% of those unrealized gains. To give 100% loan on something that fluctuates in price, is horrendous. You have to realize the USA economy is living too much on credit and this particular thing is a big reason. Your income, credit score (ability to pay load back), criminal history and your savings should be the main factors considered for giving a loan.
She loves to grandstand. Becky was smart to point out the problems with some of these policies where they have an unintended consequence of hurting people that don't have that much money. She doesn't care about that, it's not politically expedient and I wonder if she truly understands the details of what she's talking about, I don't think she is.
Becoming financially independent / sound is for the most part an outcome of hard work and sacrifices; one is an end while the other is the mean. If we take her phrase that has to do with the "end" (the rich should pay at a much higher rate than the poor) and convert it to reflect the "mean", it would be "those who work hard and makes sacrifices (toward financial independence) should pay at a much higher rate than those who don't or are not willing". It doesn't sound as sensible, does it? I have been convinced for some time now that it is not a question of "ability" but rather one of "willingness". Yes, there are outlier types of cases...such as that of Trump and the $1M his dad gave him at the beginning of his career...that would serve as an "unfair" starting point. One, leveraging outlying scenarios to justify our view isn't smart or healthy...as most of us live under the middle of the bell curve and are not outliers or special. Two, we don't have to be at Trump's level to be financially sound. I truly think in the US working toward financial independence is within our grasp...under the majority of cases (again...middle of the bell curve).
Taxing is not the problem…government spending is. Taxing the most productive people that create the most jobs and things for people is basically stupid. You should give these people more money as they are the best stewards of and investors of capital. This whole idea that we have taxes to steal money from one person and give it to another is wrong. We should have taxes for only three things border control, law and order, and national defense. The rest of government is not needed. Fair share is an idiotic rationalization to support a wasteful thriving government that keeps moving closer to communism!
Hello? Billionaires lead “lavish lifestyles” because they are billionaires! Singling out a small class of people doesn’t change the fiscal picture at all. Here’s an idea: stop spending BORROWED money! The US is borrowing 1 out of every $5 it spends. That’s insane. Don’t blame a billionaire when politicians are spending like they are billionaires.
How do you own shares and keep it if you are taxed to sell it? So if Google owns 5% of spaceX and elon 88% does this effect Google Why would the founder be forced to sell??
Think of what a majority of the millionaires and billionaires in the US did it on there on so why should they be taxed so much because of their success and not only that but they the majority of the taxes in the country and not only that when you get loan on a house that can be considered an (asset) so do you tax that if that is your home? Very in Elizabeth Warren’s thinking, very narrow it is.
They will never have money left over. I hope these people vote for these mindless wonders. Remember these democrats invited all the people from open borders. I like it they have friends, but don't ask me to pay for your party. As to the schools and colleges. AI can effectively and efficiently take over education. This is showing me why the government allowed an promoted these investors to buy single family homes. They are inflating and causing the housing shortage. Its easier to take 30000 houses from one person Than it is to take from 30000 people.
a tax on unrealized gains will never pass. Sen. Warren doesn't understand that there are a lot of your regular average Americans that have quite a bit of money saved up for there retirement, savings and/ or an. emergencies fund in the market. So you are gong to tax them too? come on give me a break
