A few of our stories and columns are now in front of the paywall. We at The Chief remain committed to independent reporting on labor and civil service. It's been our mission since 1897. You can have a hand in ensuring that our reporting remains relevant in the decades to come. Consider supporting The Chief, which you can do for as little as $3.20 a month.
To the editor:
I remember Jay Leno's comment about the German man who killed himself when his wealth dropped to $10 million: "How was he supposed to eat?" California Governor Gavin Newson evidently feels that way about the possibility of any of his state's billionaires being left with only $950 million. He opposes a ONE-TIME wealth tax on them of five percent.
He feels billionaires will desert the state if it passes.
Californians will vote on this proposal in November. As usual, labor unions who proposed it are already in retreat, saying they would support reducing it to two percent.
Newson opposes that as well, but it is not surprising that he is considered a leading candidate for the 2028 Democratic Party nomination. He's the type of candidate the party's leadership tends to support, as opposed to those "radicals" who feel that a budget that prioritizes the general public instead of only the richest members of it is what Democrats should push for.
The top federal tax rate from 1953 until they left office in 1961 under those radical Republicans, President Dwight Eisenhower and Vice President Richard Nixon, was 91 percent. Today, it is 37 percent. Today, any tax hike is not only opposed by Republicans, but so-called centrist Democrats as well.
A recent AP/NORC poll shows only 53 percent are extremely or very proud to be an American. Considering what a mess this country is in today, that's surprisingly high.
Are good wages for workers, health care for everyone and a secure retirement for seniors a priority? No. That costs too much. Catering to people who already have more money than they will ever need but will not consider any amount to be enough is more important to our government. Elon Musk becoming the first trillionaire is more important than saving people's lives. So it's a surprise that so many Americans are not proud of that?
Richard Warren
10 comments on this item Please log in to comment by clicking here
Valete
Contrary to popular belief, Gavin Newsome possesses a profound understanding of the declining popularity of wealth taxes within the Nordic region. While the “Nordic model” is renowned for its high tax rates, nearly all Nordic countries have abandoned wealth taxes over the past several decades. These countries discovered that wealth taxes resulted in substantial capital flight, posed significant administrative challenges, and failed to generate substantial revenue.
Norway stands out as one of the few OECD nations that continues to impose a comprehensive wealth tax. However, this policy has experienced a notable decline in effectiveness in recent years.
The Backlash: In 2022, Norway’s center-left government increased the nominal wealth tax rate to 1.1% and implemented stricter regulations on business valuations.
The Billionaire Exodus: The hike triggered an unprecedented capital flight. Dozens of Norway’s wealthiest citizens and entrepreneurs relocated to lower-tax jurisdictions such as Switzerland.
Present Trend: The mounting pressure on Norway’s business environment has reached a critical juncture, prompting a government-appointed expert commission to propose a reduction in the wealth tax rate to a range of 0.25% to 0.75%. This recommendation aims to restore predictability and mitigate the exodus of entrepreneurs.
Ultimately, the Nordic consensus holds that taxing consumption (through high Value-Added Tax rates) and ordinary income is a significantly more stable means of funding a “generous welfare state” compared to taxing accumulated wealth.
Wednesday, July 8 Report this
Admin
So a ONE-TIME wealth tax is going to create an exodus of businesses from California?
Wednesday, July 8 Report this
reenjoe
For the record, since Nordic countries like Sweden removed their wealth taxes, they have become a haven for tax cheats and their social safety nets are collapsing.
For the first time since WW2 Sweden has a two-tier society of haves and have nots. A majority of ordinary Swedes want the wealth tax restored.
Thursday, July 9 Report this
Valete
The facts don’t lie, the wealth tax is a proven failure.
Thursday, July 9 Report this
wpeakes
LOL...it's proven fact that wealthy people always threaten to leave places where their wealth will be taxed but they never do because that's where the money is! They're not going anywhere...bring on the wealth tax!
Friday, July 10 Report this
reenjoe
You know what is a proven failure? An economic and tax system that produced a society where 50 percent of the population holds 2 percent of the nation's wealth. A system that adds trillions of dollars to its multi-trillion dollar debt each year. A system where the wealthiest individuals pay the lowest tax rates and allows that wealth to be passed on with little to no taxation. In short, the US has been failing since Reagan introduced the low tax, trickle-down economics that has decimated the middle class.
Friday, July 10 Report this
Valete
Reen’ro
Your opinions and arguments regarding the topic of discussion lack substance and are outdated. If you intend to refute my letters and posts, I suggest incorporating more compelling information to strengthen your position.
Saturday, July 11 Report this
Valete
To begin, it is crucial to clarify the facts. Approximately, the top 3.5% to 4% of American households possess 50% of the total wealth in the United States, not 2%.
Regarding the top earners:
- The top 1% of earners paid 40.4% of federal income taxes.
- The top 5% of earners paid 60% of federal income taxes.
- The top 10% of earners paid 71% of federal income taxes.
- The top 50% of earners paid 97% of federal income taxes.
Interestingly, the bottom 50% of earners paid the remaining 3% of federal income taxes.
Sunday, July 12 Report this
Valete
Before I forget, you can’t legislate brains, initiative, or a strong desire to succeed. If you have a problem with the US tax system, you should complain to the Democratic Socialists of America (DSA). I believe that if you were to complain to the DSA, they would give your complaint their utmost attention. The Democratic Socialists of America (DSA) advocate for reducing corporate influence and transitioning the economy from capitalism to worker control, ultimately striving to establish a utopian society. However, societies that initially appear utopian, such as the community depicted in Lois Lowry’s The Giver, eventually reveal a dark, controlling, and dystopian core.
Sunday, July 12 Report this
reenjoe
I'm curious - does Word Man intentionally pretend to misunderstand what others post or is he extremely dense?
I post that 50 percent of the population (the BOTTOM half, obviously) holds 2 percent of the nation's wealth and Word Man counters with:
"the top 3.5% to 4% of American households possess 50% of the total wealth in the United States, not 2%."
Interestingly, his comments support the point I was making - our current economic and tax system is failing the American people.
Wednesday, July 15 Report this