William Gates III on the left. Alfred E. Newman on the right.
French economist Thomas Piketty says the world’s richest man loves everything about his 2014 book, Capital in the Twenty-First Century, except for the part about how the rich should pay more in taxes.
According to the Huff Post: Bill told Tom, “I love everything that’s in your book, but I don’t want to pay more tax.’”
Last October in October, wrote that he agreed tn his personal blog that “[c]apitalism does not self-correct toward greater equality.” But Gates also took issue with one of the Picketty’s central arguments: that governments should look to tax capital more aggressively to combat capitalism’s inherent tendency toward higher levels of inequality.
“I agree that taxation should shift away from taxing labor,” Gates said “but rather than move to a progressive tax on capital, as Piketty would like, I think we’d be best off with a progressive tax on consumption.” Gates painted a hypothetical portrait of three wealthy people: “One investing in companies, one in philanthropy, and one in a lavish lifestyle. There’s nothing wrong with the last guy “but I think he should pay more taxes than the others.”
Bill goes on to advocate a sort of progressive consumption tax. I sort of agree with Bill, except that I think everyone should have the same opportunity to avoid taxes. Since he (and his parents before him) have been able to avoid taxes by spending their money on pet causes, why should not everyone have the same choice?
Is Bill is wiser than the rest of us? Perhaps he should remember that the government already exercises its judgment by agreeing that the projects of the Gates Foundation are “charitable.” How does Bill feel about the “investments” his partner Paul Allen makes in the Seahawks? Are they really taxable or, as is usually the case for sports, do franchises like the Seahawks on paper lose money?
Maybe a better comparison to the Gates Foundation is Phil Knight’s Investment in the University of Oregon? That billionaire made his money building NIKE and now gets to use tax free dollars to support Oregon’s Rose Bowl winning (I assume) Ducks! Is support for a college football program as charitable as fighting malaria or telling everyone else how to run the public schools??
Frankly, I am offended that Bill Gates feels his charities should make him exempt from paying his fair share of taxes. Of course if I got the same privilege as Messers Gates, Allen and Knight, I could deduct the money I spend on boating and collecting Coastal Art.
So, sorry Bill, but I do not think that your logic was good when you stated that “philanthropy done well not only produces direct benefits for society, it also reduces dynastic wealth.”
My preference is for a wealth tax. Any investment in an enterprise not intended to create wealth, any capital not being used to create more productivity … any of that should be taxed. So, yes Bill, I do think YOU and I should be taxed for money sent on hobbies.