Abigail Disney Calls for a Wealth Tax. Everybody Loses Their Minds
The Disney heiress is trending on Twitter for saying the ultra-wealthy should pay more taxes to fund pandemic relief. Not everyone is agreeing with her.
Is a wealth tax on the super-rich a good idea? Abigail Disney seems to think so. | Image: Monica Schipper/Getty Images for The New York Women's Foundation/AFP
- Abigail Disney is asking the government to raise taxes on billionaires to pay for pandemic costs.
- Her call for a wealth tax ignited a debate on Twitter.
- A wealth tax could be a good way to reduce the gap between the rich and the poor if the money is spent in the right places.
Abigail Disney, an award-winning filmmaker who also happens to be the granddaughter of Walt Disney cofounder Roy Disney, is trending on Twitter. The reason: she says that a multimillionaire like herself should pay more taxes to cover costs related to the pandemic.
Disney Has Support From Billionaires
Disney has been arguing publicly for years that the United States should implement a moderate wealth tax to close the widening gap between the rich and poor.
American billionaires got richer during the pandemic, while more than 51 million Americans have filed new unemployment claims in the past four months.
Her plan for a pandemic wealth tax has the support of at least 82 other ultra-rich people as well as the International Monetary Fund (IMF). Warren Buffett and Bill Gates are among the billionaires who are asking to be taxed more.
Increased healthcare costs and economic stimulus will leave the United States with a massive bill. Disney would like to help pay the bill.
Disney says that if we invest more in healthcare and make sure that low- and middle-income workers have some savings or own their homes, we would be doing so much better.
Disney argues that money is concentrated too heavily in a tiny fraction of the population. Wealth needs to be spread more evenly across the economy. She says that the wealthy currently have an effective tax rate of 23%. She suggests to increase it to 40%.
Not Everyone Agrees That A Wealth Tax Would Help
The public opinion regarding Disney’s proposition is divided. Some people are saying that if she wants to pay more, she should send a check to the government. Others are saying that the problem is the way the government is spending.
Disney isn’t asking the government to raise taxes on middle-class people. She is targeting the billionaires. Nobody needs billions of dollars to live comfortably.
A tax rate of 40% seems high, but billionaires will still have plenty in their pockets. The ultra-rich can pay more to help the country recover from the pandemic.
To really help, this extra money would have to be invested in the right places. The government should use this money to invest in the health system and help low-income people who struggle to pay their bills. Disney’s wealth tax is a good idea only if the government implements it well.
Disclaimer: The opinions expressed in this article do not necessarily reflect the views of CCN.com.
Stephanie has been writing about stocks and financial markets for several years. Based in Canada, she has written for The Motley Fool and Seeking Alpha. She received an MBA in finance and worked for the National Bank of Canada. Check out more of her experience on LinkedIn + and follow her on Twitter. Reach her at stephanie.chateauneuf (at) gmail.com.