When it comes to taxes Americans love not paying them, but now some millionaires want to change that. The Patriotic Millionaires call on the rich to pay their fair share, and they call for that attitude to permeate the globe. Developed nations tend to tax money made through labour at a higher rate than money made through investments, meaning rich people can get richer by not working. The chair of PM, Morris Pearl, recently wrote a good op-ed explaining why he thinks the rich should be taxed and has a new book out.
Most of the ultraâ€“rich make the vast majority of their money through capital gains, not income. They donâ€™t work in the way most Americans work, because they live off of their investments. And itâ€™s a lucrative path, because the top capital gains rate is barely over half of that paid for ordinary income.
That means a billionaire whose investments earn him millions of dollars while he sits around at the beach and goes to fancy cocktail parties pays a lower tax rate on his earnings than almost any working American.
Investing is not inherently more valuable than labor, and itâ€™s simply not true that investing in the stock market creates jobs.