One problem is that everytime the govt sets out to tax the “rich”, it end up hitting the middle class. Look at the Alternative Minimum Tax, which was put into effect some 20 years ago to tax a few millionaires who did not pay taxes. It was not indexed for inflation and now it applies to millions of taxpayers. Obama’s definition of rich at 250k could be equivalent to the minimum wage in 20 years if no indexing. Middle income taxpayers get screwed everytime the govt targets the “rich.”
What tax rate would you suggest for people with $5Mil +?
1. It doesn't tax existing wealth, only new wealth. That's why Bill Gates supports this tax.
2. Most of the superrich - the Soros types, put a lot of their money into 501c(3) operations. Those are written off their taxes, while they get a "relatively" small salary so they don't pay anything.
3. A lot of the so called "rich" are small business owners who may have $1 million plus in assets needed for the business, but can't use that money for himself. Or $1million gross with 800,000 in expenses.