I know a fanciful idea that probably will go nowhere….as much as I dislike AI the author of this piece asked AI that very question and here is what it responded…
The tax system feels upside down sometimes. You work a regular job, and a big chunk of your paycheck goes to taxes. Meanwhile, you hear stories about billionaires paying almost nothing. So, I asked ChatGPT: What would actually happen if the ultra-wealthy paid the same tax rates as everyone else?
It turns out, at least according to ChatGPT, the current system isn’t just unfair. More than that, the country could be getting hundreds of billions of dollars every year if things changed.
ChatGPT started with some shocking numbers about current tax rates. According to research from the National Bureau of Economic Research, the top 400 wealthiest Americans paid an effective tax rate of about 23.8% between 2018 and 2020.
Meanwhile, the average American paid around 30%, and high earners who mostly rely on wages paid closer to 45%. In some years, the richest 400 families actually paid less than the bottom 50% of households.
The most extreme example ChatGPT cited was from Oxfam, which found that in 2021, the wealthiest 400 families paid just 8.2% in federal individual income tax compared to a national average of 13%.
So, the people with the most money are paying the lowest rates. ChatGPT explained this happens because of capital gains preferences, tax loopholes and sophisticated tax planning that regular people can’t access.
When I asked ChatGPT to run the numbers on what equalizing tax rates could raise, the amounts were, quite frankly, staggering.
The most conservative estimate suggested that making billionaires pay taxes at the same rate as working-class Americans could generate $500 billion to $1 trillion per year in additional revenue.
Other scenarios were even more dramatic. If the top 1% paid just 10 percentage points more in taxes, that could raise $300 billion annually or $3 trillion over 10 years.
A more aggressive approach like raising billionaire tax rates by 25 percentage points could yield $800 billion or more per year. Yes, you read that number correctly.
ChatGPT also looked at specific policy proposals. Sen. Elizabeth Warren’s wealth tax could generate $113 billion annually, while Sen. Ron Wyden’s billionaire income tax might add $56 billion per year.
A fascinating answer…..
Personally I think that everyone should pay the same taxes regardless….since corporations are considered humans now they too should pay the same tax as we on all income.
Any thoughts?
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