Paul L. Caron
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Tuesday, February 4, 2020

NY Times: Bloomberg Proposes $5 Trillion In Taxes On The Rich And Corporations

New York Times, Bloomberg Proposes $5 Trillion in Taxes on the Rich and Corporations:

Bloomberg (2020)Mike Bloomberg, the billionaire presidential hopeful, is including more new taxes in his plan than his moderate rival Joe Biden but less than Bernie Sanders or Elizabeth Warren.

Former Mayor Michael R. Bloomberg of New York unveiled a plan on Saturday that would raise an estimated $5 trillion in new tax revenue from high earners and corporations, a proposal that would almost certainly raise his personal tax bill but is less aggressive than those from his most liberal rivals for the Democratic presidential nomination.

The proposal includes a repeal of President Trump’s 2017 tax cuts for high earners, along with a new 5 percent “surcharge” on incomes above $5 million per year. It would raise capital gains taxes for Americans earning more than $1 million a year and maintain a limit on federal deductions of state and local tax payments set under the 2017 law, which some Democrats have pushed to eliminate.

For high-earning owners of businesses that are not organized as corporations, it would repeal a tax deduction granted by the Trump tax cuts — and it would partially repeal Mr. Trump’s income tax cuts for corporations, raising their rate to 28 percent from 21 percent. Before 2017, the top corporate rate was 35 percent.

But the plan notably does not endorse the so-called wealth tax favored by several of the more liberal candidates in the race, like Senators Elizabeth Warren and Bernie Sanders. Such a tax has gained popularity among voters, but Mr. Bloomberg’s advisers believe it could be ruled unconstitutional — a concern shared by some progressive legal experts.

All told, Mr. Bloomberg’s advisers estimate his increases would add up to $5 trillion of new taxes spread over the course of a decade, in order to finance new spending on health care, housing, infrastructure and other initiatives. That amount is nearly 50 percent larger than the tax increases proposed by the most fiscally moderate front-runner in the race, former Vice President Joseph R. Biden Jr.

Mr. Bloomberg’s advisers said it was possible that he would propose additional measures to raise even more revenue, depending on how his other domestic spending plans develop. They said he did not plan to devote any revenues to reducing the existing $1 trillion deficit, which they said he views as a long-term problem but not an immediate one.

Wall Street Journal, Bloomberg Offers Trillions in Tax Increases to Pay for His Agenda

 

https://taxprof.typepad.com/taxprof_blog/2020/02/new-york-times-bloomberg-proposes-5-trillion-in-taxes-on-the-rich-and-corporations-mike-bloomberg-the-billionaire-presid.html

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Comments

I’m not a big Bloomberg fan, but this proposal is better thought out than some others that I’ve seen

Posted by: Mike Livingston | Feb 4, 2020 4:37:32 AM

It reads like a wish list for progressives.

There's only one change I'd make. His plan taxes capital gains the same as ordinary income for those earning over $1 million. If there needs to be an exclusion at all (and I personally don't think so), lower that limit to $250,000.

Bloomberg won't win the Democratic nomination, but his tax plan definitely has my vote.

Posted by: Gerald Scorse | Feb 4, 2020 7:30:12 AM

Mike Bloomberg to Mike Bloomberg: DROP DEAD

???

Posted by: Anon | Feb 9, 2020 5:39:29 AM