Berkshire Hathaway Deputy Chairman Charlie Munger praised Sen. Bernie Sanders of Vermont as the victor in the fight against income inequality in the US.
Munger joined billionaire Warren Buffett for Berkshire’s annual meeting on Saturday when he made the comments.
“With everything so high and interest rates so low, the Millennials will have a great time getting rich compared to our generation,” Munger said at the meeting.
“The difference between the rich and the poor in the generation that is emerging will be a lot smaller,” he adds. So Bernie won. He did it by accident, but he won, ”Munger said.
Berkshire Hathaway Vice President Charlie Munger (right) praised Sen. Bernie Sanders of Vermont as the victor in the fight against US income inequality
In 2019, when Sanders was running for president, he proposed increasing taxes by 0.5 percentage points for companies that pay top executives more than 50 times the average salary of employees.
Tax fines would have risen from then on, to a maximum of 5 percentage points for companies whose highest-paid official earns more than 500 times the average wage of employees.
His policies contrasted with Sanders’ rival for the presidency, Massachusetts Sen. Elizabeth Warren.
She had also disapproved of the sky-high pay of top executives, but proposed legislation that would prohibit CEOs from selling company stock for five years after they received them or three years after a share buyback – while also giving employees 40 percent of the board of directors at large corporations. let you choose.
Both Sanders and Warren proposed sweeping plans to increase taxes on the fortunes of some of America’s wealthiest families, proposals that would have affected CEOs outside their companies had they been elected president.
Sanders said his income inequality tax plan would apply to all private and public companies with annual sales of $ 100 million. His campaign estimated it would have grossed $ 150 billion in a decade, which could have been used to clear out medical debts nationwide.
Munger’s recent comments, however, are in stark contrast to what he said about Congressman Alexandria Ocasio-Cortez and Sen. Warren in 2019.
‘I do not think so [Ocasio-Cortez] knows who Adam Smith was, ”Munger told Yahoo at the time. ‘The people who scream about it are idiots. It will go away on its own. ‘
Munger said it is’ a problem when enough politicians shout about it. That makes it a problem ‘.
President Joe Biden is implementing his own tax plan to combat income inequality. The idea is twofold: first, to help pay Biden’s trillions in proposed expenses – for everything from roads and bridges and green energy to internet access, job training, preschool, and sick leave.
Munger said of Sanders (photo): ‘The difference between the rich and the poor in the generation that is emerging will be a lot less. So Bernie won. He did it by accident, but he won ‘
And second, to shift more of the federal tax burden to businesses and reduce America’s massive income inequality. Wealthy investors reap the greatest windfalls when after-tax corporate earnings increase.
“The burden,” said Thornton Matheson, senior fellow at the Tax Policy Center, “would fall mainly on wealthier individuals.”
The president wants to prevent companies from putting profits away in countries with low tax rates. To do this, he has proposed a minimum tax of 21 percent on the foreign income of multinationals and urges other countries to follow suit.
His plan would also end what the government sees as international loopholes in Trump’s 2017 tax laws.
To bolster its ability to eradicate tax fraud, the government has proposed adding $ 80 billion to the IRS budget over a decade to bolster the agency’s underfunded enforcement team. As part of his effort to narrow America’s wealth gap, he has also proposed increasing the tax rate on long-term capital gains for Americans who earn more than $ 1 million a year.
Many analysts see Biden’s corporate tax plan as a game changer – if Congress embraces it.
If adopted, the 21 percent minimum global tax “ basically means the end of tax haven as we’ve come to know it, ” said Alexander Arnon, an analyst with the nonpartisan Penn Wharton Budget Model, a research organization associated with the University of London. Pennsylvania.
Munger downplayed concerns that Congress and the White House could raise the corporate tax rate to 25 percent or 28 percent, saying this would not be “the end of the world” for Berkshire.
Meanwhile, Berkshire CEO Buffett said the US economy has been “brought to life in an extraordinarily effective way” by monetary stimulus from the Federal Reserve and fiscal stimulus from Congress.
“It did the job,” Buffett said. ‘This economy is currently running at an 85 percent speed in a super high gear.’
Buffett has headed Berkshire since 1965 and Munger has served as Vice Chairman since 1978.