Photograph by Nathaniel St. Clair
Americans these days don’t much like billionaires. Our ultra-rich, Americans overwhelmingly believe, aren’t paying enough in taxes. Polling earlier this month found that nearly three-quarters of the nation’s likeliest voters — 74 percent — feel billionaires are paying “too little’ at tax time.
Just how concerned about billion-dollar fortunes have Americans become? Nearly half of us overall, Harris polling found last summer, would like to see a limit on “wealth accumulation.” Among Gen Z’ers, that support for limits on billionaire fortunes runs all the way up to 65 percent.
“Billionaires,” some 58 percent of Americans agreed in that same Harris poll, “are becoming more like dictators.”
The share of Americans equating billionaires with dictators — given Elon Musk’s current dominant role in the new Trump White House — is most likely running even higher today.
The best way to counter our ongoing billionaire coup? We might want to look east for some answers. In the run-up to Germany’s February 23 parliamentary elections, that nation’s Left Party, Die Linke, has proposed a detailed five-step set of initiatives designed to cut the super rich down to democratic size.
“We believe,” the Die Linke co-chair Jan van Aken notes simply in his intro to his party’s new plan, “that there should not be any billionaires.”
But van Aken and Die Linke understand quite well that no government can suddenly snap its fingers and make billionaires disappear. The party has instead melded ideas from all around the world into a coherent and common-sense package.
The Die Linke plan’s step one: restoring a “wealth tax.” Germany has been without one since the nation’s top court nixed the wealth tax in effect back in 1995. The proposed new version would revolve around an annual levy starting at 1 percent on wealth over 1 million euros — the equivalent of about $1.03 million — and rising up to 12 percent on wealth concentrations above a billion euros.
On top of that would come a special one-time wealth tax, also on a graduated scale, that would only impact Germans sitting on fortunes worth more than 2 million euros. This levy’s top rate would hit 30 percent for awesomely affluent Germans in the proposal’s highest wealth bracket.
Germany’s super rich would also see, under the Die Linke plan, a higher inheritance tax on the wealth they leave behind. On the annual income side, top corporate executives and other high-earners would face a 75-percent tax rate on their take-homes over a million euros.
The fifth and final plank of the Die Linke plan: replacing the current 25-percent flat tax on capital gains — the income from the sale of financial and other assets — with a graduated sliding scale of rates.
The overall goal of the Die Linke tax plan: a halving of the wealth of Germany’s wealthiest over the next decade. Three other German parties on the left side of German politics are also backing tax hikes on the wealthy, but at levels not nearly as significant as Die Linke.