Bill Gates claims his US $ 10 billion tax is too low and that it is above the US capital gains tax

Do the rich pay their fair share of taxes? Billionaire Bill Gates said Monday that even though he had paid $ 10 billion in taxes, he thought his taxes could and should be higher, especially for capital gains.

When a Reddit user asked Gates what he thought he should personally pay in taxes, he said in a Reddit session "Ask Me Anything" that he thought the rich should pay more. Gates wrote:

"I think our system can be much more progressive (that is, the richer ones pay a higher share).

"A key element is to make capital gains taxation more like ordinary income (some have suggested doing so in the same way) and a more similar inheritance tax." in the past (55% above US $ 3.5 million) taxes but through consumption taxes but these are not progressive.

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"If people want the government to do more, it needs funding and I see that we need to improve our education and health services." So yes, I paid $ 10 billion dollars (14.5 billion New Zealand dollars), but I should have paid more for my capital gains. "

This is not exactly a sign of approval of Representative Alexandria Ocasio-Cortez's proposal to impose a 70% tax rate on income exceeding US $ 10 million. But it's a more focused approach.

Short-term capital gains, for assets held less than one year, are taxed on the ordinary income bracket in the United States. So, if you are returning houses or cars as your side, it relies on your taxes the same as your main job.

But long-term capital gains, for assets held for more than a year, reach 20% for the rich. So, if you earn money by investing in stocks, real estate or other valuables, as do a lot of wealthy people, you pay less taxes.

Gates also suggests a heavy tax when the richest possess great wealth.

This is a reminder of one of the most famous defenses of the estate tax proposed by steel mogul and philanthropist Andrew Carnegie.

In 1889, Carnegie stated that the rich who leave all their money to their children "accumulate" their wealth, rather than using it to their advantage, throughout their lives. Thus, a tax on death cancels the impact of "the unworthy life of the selfish millionaire," said Carnegie.

This is clearly an argument that Gates could understand. He leads one of the largest and most influential charities, the Bill and Melinda Gates Foundation, and funds projects that help the world's poor.

And Gates made another big difference in the way he thinks the rich are taxed: when they sell their assets, not when they spend their money.

He does not want the United States to raise taxes through consumption taxes. Consumption taxes, such as sales taxes, hit the poor and the middle class more than the rich, according to the researchers.

It is not known at which period or at which governments the $ 10 billion in taxes that Gates said he paid were mentioned. In all respects, that's a lot of money – although Gates can afford it.

Gates has an estimated net worth of $ 98.2 billion. It's just an approximate stage because Gate's wealth is more than a little secretive. Most of its money is managed by Cascade Investments LLC, which is not required to publicly disclose its holdings or budget results, except in cases where it has a large stake in a particular company.

Cascade has, for example, revealed large long-term holdings in companies such as Berkshire Hathaway, Waste Management and AutoNation. But he also owns real estate. And Gates is involved in various venture capital investments.

He has also publicly pressure the US government to invest in foreign aid, health care, education and scientific research. So his answer says that he is ready to put his money where his mouth is.

For greater clarity, the 1% of the richest Americans pay about one-fifth of all taxes collected by the country (22.9%), but they also receive about one-fifth of the country's income, at 20.3%. %.

And contrary to what the public thinks, the richest 1% may not be as rich as you think: The 1% are those who earn more than 480 000 USD a year from 2016, the latest available data from the IRS.

While half a million dollars in revenue a year is a lot of money, Gates advocates for ways to target millionaires and billionaires who derive much of their money from their investments, rather than their wages, so as to be subject to the lowest tax brackets.

– This story was first published by BusinessInsider.com.au