Bond market guru Bill Gross to super-rich: we must pay more taxes
Bill Gross, co-founder of Pacific Investment Management Co. (PIMCO) and manager of the world’s largest bond fund, says the “privileged 1%” must pay more in taxes to help the US economy.
The super-rich “should be paddling right alongside and willing to support higher taxes on carried interest, and certainly capital gains readjusted to existing marginal income tax rates,” Gross wrote in his most recent investment letter entitled Scrooge McDuck.
“Having benefited enormously via the leveraging of capital since the beginning of my career and having shared a decreasing percentage of my income thanks to Presidents Reagan and Bush 43 via lower government taxes, I now find my intellectual leanings shifting to the plight of labor.”
“Having gotten rich at the expense of labor, the guilt sets in and I begin to feel sorry for the less well-off…I would ask the Scrooge McDucks of the world who so vehemently criticize what they consider to be counterproductive, even crippling taxation of the wealthy in the midst of historically high corporate profits and personal income, to consider this: Instead of approaching the tax reform argument from the standpoint of what an enormous percentage of the overall income taxes the top 1% pay, consider how much of the national income you’ve been privileged to make.”
“Stanley Druckenmiller and Warren Buffett have recently advocated similar proposals. The era of taxing “capital” at lower rates than “labor” should now end.”