Bill Gates wants to pay more tax

A group of the world's wealthiest individuals are lobbying the US Senate to introduce tougher estate tax rules.

The protestors, including Microsoft's Bill Gates, fund manager John Vogle and Richard Rockefeller, are calling on the Senate to act before the holiday break to strengthen the US estate tax laws.

If the Senate fails to act, there will be no estate tax in 2010. This will effectively give the wealthiest 1% of Americans $400bn tax break over the next decade.

According to a statement from national nonprofit United for a Fair Economy today, the billionaires say low estate tax will result in significant losses for the federal government.

This revenue supports the vital public structures and systems - transportation and energy infrastructure, education and healthcare, among others.

"In making the 2009 estate tax cut permanent, the House of Representatives would give a huge tax-break to the wealthiest 1% of Americans over ten years, at a time when economic inequality has skyrocketed," said Lee Farris, UFE's estate tax policy coordinator.

Bill Gates said: "No one accumulates a fortune without the help of our society's investments. How much wealth would exist without America's unique property rights protections, public infrastructure, and academic institutions? We should celebrate the estate tax as an "economic opportunity recycling" programme. It's our turn to pass on the gift."

The US House of Representatives recently cast a vote in favour of the estate tax proposal, which makes 2009 estate tax law permanent, with a $3.5m exemption and a 45% tax rate. If no vote is taken this year, the estate tax will disappear on January 1, 2010, and then revert to a $1 million exemption per spouse with a 55% rate in 2011.

In Germany, a similar lobby group has been gaining prominence. The German initiative, the Vermögende für eine Vermögensabgabe (wealthy people in favour of a wealth tax), was launched last spring, according to UK newspaper The Times.

Twenty one wealthy individuals initially signed up to the campaign, which aimed to convince the grand coalition Government to reinstate meaningful property tax which is only 0.9% in Germany. Since its launch a further 25 millionaires have joined the elite lobbyists, who are calling for property tax of 5%.

Source:wealth-bulletin.com/