Things That Matter

Bill Gates, Second Richest Man On Earth, Disagrees With Alexandria Ocasio-Cortez’s Marginal Tax Plan

When Alexandria Ocasio-Cortez first presented the idea that the rich should be taxed up to 70 percent on all money made after $10 million in a year, there was a clear and loud gasp among the wealthy. How could a young woman of color have the audacity to propose such a thought as to marginally tax the rich more than the poor? The notion of a marginal tax on the rich to help fund the rest of the country was so unusual to former Starbucks CEO and billionaire Howard Schultz that he decided to run for president.

“Let’s be sensible about what we are suggesting,” Shultz said, according to Business Insider, regarding the congresswoman’s marginal tax plan. “Let’s not just throw things against the wall because it’s a good slogan or a good press release.”

Now, another billionaire is speaking out against marginally taxing the excessively rich.

Bill Gates, the second richest man in the world, said taxing the wealthy more than other group isn’t reasonable.

In an interview with the Verge, Gates thinks a 70 percent marginal tax on the rich, which would tax money made after they make $10 million in one year, is missing the “bigger picture” and would lead to other problems. Gates said that a marginal tax on the super rich will only cause them to put their money in off-shore accounts (something the excessively rich already do to avoid paying their fair share), and added that it’s difficult to show who is wealthy because of some people’s money is in stocks, not actual currency.

“Certainly, the idea of government being more effective in terms of how it runs education or social programs, there’s a lot of opportunity for improvement there,” he said. “In terms of revenue collection, you wouldn’t want to just focus on the ordinary income rate, because people who are wealthy have a rounding error of ordinary income.”

He did, however, offer an alternative: “The estate tax and the tax on capital, the way the FICA [Federal Insurance Contributions Act] and Social Security taxes work. We can be more progressive without really threatening income generation — what you have left to decide how to spread around.”

Gates also addressed Ocasio-Cortez tax plan on the “Late Show” and admitted to being biased about the idea.

Stephen Colbert, the host of the “Late Show,” asked Gates and his wife Melinda “There’s a lot of talk right now that maybe billionaires shouldn’t exist, have you heard some of this talk?”

Gates responded by saying: “Well, we might be biased” and added, “I think you can make the tax system take a much higher portion from people with great wealth.” While that response seemed as if he was coming around to Ocasio-Cortez’s tax plan he then pushed back on the idea.

“So I think that’s a great debate,” Gates told Colbert. “I think if you go so far as to say that there’s a total upper limit, that might have more negatives than positives. But, you know, I may have a distorted view of this.”

Hey, at least he admits to it, but there’s an essential element about Ocasio-Cortez’s tax plan that billionaires refuse to see.

History shows that a marginal tax existed between 1957 and 1970s and it worked.

The marginal tax in the past has been as high at 92 percent. The most important part of a marginal tax plan is that not all of the income is taxed at that rate. People are free to earn up to $10 million in a year at the normal tax rate. However, any money generated over the $10 million threshold is then subjected to an elevated tax. The revenue generated by the tax plan, according to some experts, would benefit the U.S. economy and strengthen the middle class. Currently, people are seeing their own tax refunds going down or owning thousands of more dollars to the federal government because of Trump’s tax plan that gave tax breaks to the same ultra-wealthy who don’t want the 70 percent marginal tax.

According to Fortune magazine, a majority of Americans approve of Ocasio-Cortez’s tax plan. Fifty-nine percent of registered voters, 71 percent of Democrats, 60 percent of Independents, and 45 percent of Republicans, all support the 70 percent marginal tax on the excessively wealthy.


READ: The Green New Deal Is What Everyone In Politics Is Talking About. Here’s What It’s All About

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Investing Latina’s CEO Is Here To Tell You The Best Ways To Save You Money

Fierce

Investing Latina’s CEO Is Here To Tell You The Best Ways To Save You Money

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Saving money and investing it properly is tough. It is hard to know where to take your money to make the most of it. Fortunately, FIERCE is here with another chat with a money queen to make sure that you get the most of your money.

Jully-Alma Taveras is here to help you reach your money-saving goals.

Saving money is tough. How much should you set aside? Where do you keep it to make sure it is safe? When should you start? Taveras started Investing Latina two years ago to help people figure out the best way to start their savings journey. There are a lot of things to save for from retirement to big purchases to emergencies. Here is some of what Taveras had to say when our very own Sam sat down with her.

Sam: “Let’s talk about savings. What would you recommend people do to start saving today?”

Jully-Alma Taveras: “Savings is kind of the beginning of it all, right? It’s kind of where we start laying down the bricks and foundation to our financial house. When I say laying down bricks, that’s really what I mean. I mean that they are small and heavy but they build up. That’s exactly how you have to think about how you start saving. It really starts small. Nobody starts with $10,000 in their savings account. Nobody. Everybody starts putting in $25 per week. Fifty dollars per month. Whatever it is that you can do. You have to be able to just kind of put it aside.

“I always recommend using a savings account first. Your core savings account at a bank that you can easily access if you needed to access your savings and then having a bulb of savings to a high-yield saving account so that you can also use the technology that exists right now with high-yield savings accounts. You can have little envelopes so you are saving for designated things. You can save for specific goals.

“I think that when it comes to savings, you really do have to set a big goal for yourself, and then you kind of start working backward. Then you’re like, ‘Okay. My goal is to save $10,000 in 2021. That’s what I want to get to. I want to be able to have my 1,000 immediate little emergency need savings account with just $1,000 and then I want to have the rest into a high-yield savings account where I can really start building my money confidence. That’s what happens when we start saving money.”

S: “One of the things I know that we started chatting about was high-yield savings accounts. Can you go into some more details about what exactly that is for everyone?”

JAT: “When we talk about a high-yield savings account, it really is a way for you to put savings into a bank or institution, or nowadays it’s really just an app sometimes. You put it in a place,  secure place that’s FDIC-insured place, where you can get a higher interest rate than what typical savings accounts offer. When you open up a checking account, you’re automatically, or usually going to get the option of opening a savings account with our bank. The retail banks that we typically use, the ones that we can walk into, that we can have ATM cards you can easily access and have teller access are usually positioning themselves where they offer retail services.

“What happens with that is that they don’t give you a lot for holding onto your money. They’ll offer something like a free checking account or a free savings account. They won’t charge you for it depending on what category you’re in, especially teens or if you are in school. You can definitely get a free checking account. But, they won’t give a higher interest rate than likely .02 percent. What a high-yield savings account offers is a higher interest rate. These are usually with banks that you don’t normally see as you walk down Main Street in your neighborhood. We aren’t talking about the Chases the TD Banks the Citi Banks, right? These banks that we know and are familiar with because we see them on Main Street. We see them in our neighborhoods. They’re not typically going to have a high-yield savings account. They want you to just use their services, their savings accounts, and their checking accounts. That’s it and they’re just going to be happy holding on to your money while you transact and do what you have to do with your money.

“With high-yield savings accounts, those are typically going to be with banks that don’t have retail stores. Some examples are Marcus by Goldman Sachs. SoFi, which is one of my favorites because of the tech that they’ve implemented in their app and their website. Ally Bank. These are banks that we typically won’t see actual physical banks of but they do exist online.

“What they do, mechanically, just so you kind of understand what happens when you put money into a high-yield savings account, is truly, they’re actually, putting all of our money together and they’re kind of investing our money behind the scenes. That’s what happens. You have the security of your digitized dollars and you will never lose it because it’s not an investment account.

“That’s basically what’s happening. Just so you know. You can feel safe that your money is there. It’s FDIC insured or it is completely insured up to the $250,000. That’s typically what we get insurance on. Then you also make a little extra so you make a couple of dollars every month.”

Taveras has so much more to say about saving and investing. Watch the full video below!

READ: In The First Episode Of FIERCE’s ‘Money Moves,’ We Explore The All-Important Budget

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Here Are The Executive Actions That President Biden Is Signing His First Day In Office

Things That Matter

Here Are The Executive Actions That President Biden Is Signing His First Day In Office

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President Joe Biden has a lot of work ahead of him and he is hitting the ground running. On his first day in office, President Biden has a series of executive actions he is signing to reverse a lot of the damage created by the Trump administration. Here are some of the things President Biden will do with these actions.

The border wall on the southern border is done, y’all.

President Biden is saving the taxpayers billions of dollars by halting the construction of President Trump’s border wall. The border wall is one of former President Trump’s several unfulfilled promises at the expense of the taxpayers.

Despite his unrelenting campaign, Mexico never paid a dime to the wall. President Biden’s action to halt the border wall is a humanitarian and conservationist move that will save billions of tax dollars. According to estimates, there would be $3.3 billion in unused funds in the projects accounts.

The emotionally devastating Muslim ban will finally come to an end.

Former President Trump famously put an end to travel from predominantly Muslim countries. The order arbitrarily excluded a group of people based on their religion. The order that has kept families apart for years is finally coming to an end thanks to President Biden.

President Biden’s ation will bring families together and safeguards the rights of religious freedom. The ban has kept spouses separated, children apart from parents, and caused real damage. There is more to be done to make up for the stain on American history and the action is the first step.

The Keystone XL Pipeline is toast.

We all remember the terrifying scenes of Native people being brutalized by federal officials under Trump’s command. President Biden will make sure that the permit for the pipeline is revoked and put an end to a project that has been devastating the Native community. Activists have been fighting for years to get this done.

Undocumented people will have to be included in census counts.

President Biden is getting rid of the Trump administration’s terrible policy of ignoring undocumented people in the census. There have been several arguments by officials that the move would work to undermine certain states. The policy would take federal money away from states that did not support the former president and have high undocumented populations.

President Biden is going to preserve DACA.

More than 600,000 people benefit from the Obama-era program. Former President Trump waged a war against DACA and Dreamers for political points. Most Americans support DACA and a pathway to citizenship for DACA beneficiaries. With the new executive action, President Biden will instruct the federal government to restore the program to its fullest.

There is still a lawsuit the Biden administration will have to fight. The lawsuit challenging DACA’s legality was filed by Texas Attorney General Ken Paxton.

In total, President Biden will sign 17 executive actions that will roll back several issues created by the previous administration.

“Today, hours after taking the oath of office, President-elect Biden will take a historic number of actions to deliver immediate relief for families across America that are struggling in the face of converging crises. He will sign a combination of executive orders, memoranda, directives, and letters to take initial steps to address these crises, including by changing the course of the COVID-19 pandemic, providing economic relief, tackling climate change, and advancing racial equity,” reads a statement from the Biden-Harris Transition Team. “President-elect Biden will take action — not just to reverse the gravest damages of the Trump administration — but also to start moving our country forward. These actions are bold, begin the work of following through on President-elect Biden’s promises to the American people, and, importantly, fall within the constitutional role for the president.”

READ: President Joe Biden’s And Vice President Kamala Harris’ Inauguration Represented America

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