Bernie Sanders proposes taxing income over $1 billion at 100% and insists it’s time to make ‘greedy billionaires’ pay their fair share

Bernie Sanders is challenging the richest Americans with his call for a 100% tax on income over $1 billion. In a May 2023 interview on HBO’s Who’s Talking to Chris Wallace? Sanders explained his position: “You may not agree with me, but I think people can get by with $999 million. I think they can survive just fine.”

According to a Fortune article, Wallace wondered, “Are you actually saying that once you reach $999 million, the government should seize the rest?” Sanders responded with an immediate ‘yes’.

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This reflects his belief that the ultra-rich 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 today in a country 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 have to address the greed of the billionaire class and say, yeah, you know what, guys… you’re going to pay your fair share of the costs.” taxes.”

His plan doesn’t just target billionaires’ incomes — it also includes a progressive wealth tax on households worth more than $32 million, starting at 1% and rising to 8% for billionaires. He has also proposed a 40-60% exit tax on assets for those who renounce US citizenship to avoid taxes.

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Critics argue that Sanders’ wealth tax proposal could backfire, especially if it promotes innovation and entrepreneurship. The National Taxpayers Union Foundation warns: “At a time when new entrepreneurship needs to be promoted, a wealth tax would do the opposite.” Their concern is that such taxes would discourage business growth and innovation because founders could face high tax bills simply for owning successful companies.

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

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