Bernie Sanders Proposes Taxing Income Over $1 Billion At 100% And Urges It's Time To Make 'Greedy Billionaires' Pay Their Fair Share

Bernie Sanders is challenging the wealthiest Americans with his call for a 100% tax on income above $1 billion. In a May 2023 interview on HBO's Who's Talking to Chris Wallace?, Sanders explained his stance: "You may disagree with me, but I think people can make it on $999 million. I think that they can survive just fine."

According to a Fortune article, Wallace asked, "Are you basically saying that once you get to $999 million, the government should confiscate all the rest?" Sanders responded with a direct "yeah."

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This reflects his belief that the ultrarich should not exist in a society with such extreme economic inequality. On his official Facebook page in September 2024, Sanders doubled down, saying, "We live in a nation today that has more income and wealth inequality than has ever existed in the history of the United States." He painted a stark picture of the divide, stating that while the billionaire class is "doing phenomenally well," 60% of Americans are "living paycheck to paycheck."

Sanders also addressed critics of his approach, saying, "What I believe is that we got to take on the greed of the billionaire class and say, yes, you know what, guys … you are going to start paying your fair share of taxes." 

His plan doesn't just target billionaires' income – it includes a progressive wealth tax on households worth over $32 million, starting at 1% and climbing to 8% for billionaires. He's also proposed an exit tax of 40–60% on assets for those renouncing U.S. citizenship to avoid taxes.

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Critics argue that Sanders' wealth tax proposal could backfire, especially when fostering innovation and entrepreneurship. The National Taxpayers Union Foundation warns, "At a time when new entrepreneurship should be fostered, a wealth tax would do the opposite." Their concern is that such taxes would disincentivize business growth and innovation, as founders could face steep tax bills simply for owning successful companies.

For example, a business owner with a company valued at $100 million would owe $1.2 million annually under Sanders' plan, forcing them to sell part of their stake just to pay the tax. Over time, this could discourage the creation of transformative companies like Tesla or Apple. Critics fear that these measures would ultimately stifle the very kind of risk-taking that drives economic growth.

A report from TaxFoundation.org also warned that wealth taxes could lead to capital flight, pointing to countries like France and Germany that abandoned similar policies after they proved ineffective.

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The results have been messy even in nations where wealth taxes still exist, like Spain and Norway. Spain, for example, has seen marginal tax rates climb above 100% in some cases, discouraging investment and hurting wealth generation across all income levels.

Despite the pushback, Sanders is standing firm. In his speech at the Democratic National Convention in August, Sanders stated, “Brothers and sisters, bottom line, we need an economy that works for all of us … not just the billionaire class."

Whether you agree with him or not, his proposal forces a crucial question: Is it time to rethink how wealth is distributed in America? Or will the unintended consequences of such radical ideas outweigh their potential benefits? 

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