‘Democrats unveil an ultra-millionaire tax on the top 0.05% of American households’
‘”The ultra-rich and powerful have rigged the rules in their favor so much that the top 0.1% pay a lower effective tax rate than the bottom 99%,” Warren said’
- Democratic lawmakers introduced a bill that would place a 2% wealth tax on households with net worths over $50 million.
- The wealth tax would work to combat wealth inequality and include anti-evasion measures to ensure everyone is paying their fair share.
- Progressive lawmakers have championed the wealth tax, but more moderate and conservative lawmakers have pushed back on it.
Tax the billionaires.
The $1.3 trillion wealth gain by America’s 660 billionaires since the pandemic began could pay for a stimulus check of $3,900 for every one of the 331 million people in the US. And the billionaires would be as rich as they were before the pandemic.
https://twitter.com/bnymellonwealth
https://www.bnymellonwealth.com/articles/strategy/quick-take-stimulus-taxes-and-portfolios.jsp
bnymellonwealth.com March 2, 2021
On March 1, 2021, Sen. Elizabeth Warren (D-MA), Rep. Pramila Jayapal (D-WA) and Rep. Brendan Boyle (D-PA) unveiled an Ultra-Millionaire Tax Act that would impose an annual wealth tax on households and trusts that have a net worth in excess of $50 million. The proposed legislation is designed to narrow the wealth gap.
The legislation would impose a 2% annual tax on the net worth of households and trusts in excess of $50 million. In addition, the legislation would impose an additional 1% surtax (3% tax overall) on the net worth of households and trusts in excess of $1 billion.
The proposed legislation also contains several provisions that would discourage the evasion and avoidance of the tax. Those provisions include the following:
The investment of $100 billion to rebuild and strengthen the IRS to ensure that it has the resources needed to implement and enforce the new tax;
A 30% minimum audit rate for households and trusts subject to the tax;
A 40% tax on the net worth above $50 million of any U.S. citizen who attempts to avoid the tax by renouncing their citizenship;
Resources to help the IRS value difficult-to-value assets;
Enhanced third-party reporting to build on existing tax information exchange agreements adopted after the Foreign Account Tax Compliance Act (FATCA) and penalties for underpayment.
The proposed legislation is expected to raise $3 trillion in tax revenue over 10 years without raising taxes on the reported 99.95% of American households that have net worth below $50 million.
With a narrowly divided Congress, it’s unclear how far this bill will go toward becoming law. However, with federal gift and estate tax exemptions set to be significantly reduced at the end of 2025, if not sooner, this is an opportune time to consider taking steps to mitigate the potential impact of higher taxes on your portfolio, wealth and estate plans.
This paper https://www.bnymellonwealth.com/articles/strategy/tax-increases-are-coming-or-are-they.jsp explores some of the key tax areas where significant increases would affect individual taxpayers, as well as how and when these increases may become effective.
Bitcoin smashed through its previous all-time high, pushing its market capitalization past $1 trillion. Growth shows no apparent signs of slowing down either as sentiment around cryptocurrency increases, especially as JP Morgan and BNY Mellon will start offering digital payment.
Berkshire owns 7.5% of BNY Mellon, which plans to custody Bitcoin. So Buffet has emerging exposure to Bitcoin. Also his discourse on buybacks is basically old school NgU technology – make the asset more scarce opportunistically as opposed to algorithmically. He loves it.
If only there was some sort of sign that #Bitcoin
is here to stay…
Thinking face
– Tesla
– PayPal
– Visa
– Square
– BlackRock
– Guggenheim
– BNY Mellon
More to come…
– Apple
– Microsoft
– Facebook
– Google
– Oracle
– Twitter
Can banks be their own bank? Deutsche Bank, BNY Mellon plan custody services. Experts say building custody solutions is tricky, but will become crucially important as crypto grows more valuable. That doesn’t necessarily mean they’re prepared for crypto custody. Digital assets are decentralized by design and their ownership is therefore relying on a totally different model that cannot reuse the existing centralized infrastructure of the traditional banking world. “Only a few crypto exchanges like Kraken, Gemini and Binance are investing a lot of money to prove proper internal controls over their personal private keys management protocols,” Dyma Budorin
https://cointelegraph.com/news/can-banks-be-their-own-bank-deutsche-bank-bny-mellon-plan-custody-services
https://cointelegraph.com/news/can-banks-be-their-own-bank-deutsche-bank-bny-mellon-plan-custody-services
If your financial advisor still believes bitcoin is not valuable, you should probably start looking for a new one.