Economic Affairs

High taxes on the super-rich are back in vogue

A tax counter-revolution may be under way

Could a new tax revolution be on the cards that will end the long era of low taxes for the super-rich? We don't know yet, but in the United States, the battle lines are being drawn.

The newly elected US Congressman Alexandria Ocasio-Cortez made headlines recently when she proposed a top marginal tax rate of 70 per cent on incomes of US$10 million (S$13.5 million) or more. The left-of-centre US politician and presidential candidate, Senator Elizabeth Warren, proposes a 2 per cent "ultramillionaire wealth tax" on people with a net worth of US$50 million and an additional 1 per cent on those worth more than US$1 billion. This tax would be levied on the combined value of all assets, including financial assets and real estate held both within and outside the US.

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A version of this article appeared in the print edition of The Straits Times on February 27, 2019, with the headline 'High taxes on the super-rich are back in vogue'. Print Edition | Subscribe