Additional Coverage:
- Bernie Sanders reveals the ‘most significant addiction crisis’ in America today — no suprises here (marketrealist.com)
Sanders Slams “Billionaire Greed” as California, New York Eye Wealth Taxes
Los Angeles, CA – Senator Bernie Sanders (I-VT) didn’t mince words during a recent fiery speech in Los Angeles, accusing the nation’s wealthiest of an “addiction to greed” and urging California voters to back proposed tax hikes on the state’s billionaires. His comments come as both California and New York grapple with significant budget challenges and explore taxing their ultra-rich residents.
Sanders, joined by former Labor Secretary Robert Reich in pushing for these aggressive tax measures, warned that billionaires are “treading on very, very thin ice.” He called the levels of economic inequality “grotesque,” particularly in California, which boasts more billionaires than any other state, largely due to its status as the home of Silicon Valley.
The independent senator expressed his “disgust” over reports of wealthy tech leaders threatening to leave California if a proposed wealth tax becomes law. This sentiment echoes a widespread debate, as nearly half of California’s personal income tax revenue already stems from the top 1% of earners.
A coalition of healthcare unions, led by Service Employees International Union-United Healthcare Workers West (SEIU-UHW), is championing a ballot proposal in California. This initiative would implement a one-time 5% tax on all billionaire assets, including stocks, businesses, art, collectibles, and intellectual property. The revenue generated would be earmarked to offset federal funding cuts to health services approved last year.
Such a proposal has predictably sparked an uproar in Silicon Valley, with some tech leaders eyeing more tax-friendly states like Florida. “These people suffer from an addiction problem,” Sanders asserted.
“Do you know what the most significant addiction crisis in America is today? It is the greed of the billionaire class.
For these people, enough is never enough. They are dedicated to accumulating more and more wealth.”
Former Labor Secretary Reich echoed these sentiments, urging Governors Kathy Hochul of New York and Gavin Newsom of California to be courageous in pursuing these tax reforms. In a recent online post, Reich argued that while a few wealthy individuals might depart, “evidence suggests the vast majority will stay put.”
New York City Mayor Zohran Mamdani recently issued a stark warning, calling a wealth tax a “last resort” to avoid a 9.5% property tax hike necessary to address a $5.4 billion deficit.
In California, a nonpartisan analysis from the Legislative Analyst’s Office indicated that a one-time billionaire tax could potentially generate tens of billions of dollars. However, the report also highlighted considerable uncertainty, noting that wealthy Californians departing the state could lead to the loss of hundreds of millions in state income taxes. The study also pointed out the complexities and costs associated with implementing such a law, particularly the challenge of valuing diverse assets.
Despite the potential revenue, both Governor Newsom and Governor Hochul have expressed reluctance to aggressively pursue these tax hikes. Reich, however, suggested that while a “kind” explanation for their hesitation might be the practical challenges, an “unkind” one is that they are “in the pockets of the rich.”