Wealth tax proposed to redirect hoarded wealth of the superrich

An excerpt from a new book argues for a national annual wealth tax starting at one percent on fortunes above $25 million, which the authors estimate could raise about $40 billion a year in Canada; it also criticizes generous tax advantages for philanthropy and the concentration of funds in private foundations.

The excerpt argues that very large private fortunes could be redirected into public uses through a national wealth tax. The authors propose an annual levy starting at one percent on net wealth above $25 million and estimate it might raise roughly $40 billion a year in Canada. They also criticise current tax treatment of philanthropy and the role of private foundations in holding large sums that are mostly not disbursed. The piece links the Canadian debate to related discussions in California, where a ballot initiative and public commentary have prompted political responses. Key points: - The authors propose a national annual wealth tax beginning at 1% on net fortunes above $25 million and estimate about $40 billion in potential annual revenue. - The excerpt notes that Canada does not officially track wealth at the very top and describes how some ultra-wealthy use borrowing against assets to avoid triggering taxable capital gains. - The authors say tax rules give substantial benefits to philanthropy and report that private foundations hold more than $107 billion, with limited annual disbursements. - The piece references a California wealth-tax initiative and political reactions, including Governor Gavin Newsom's opposition and mentions of national proposals by U.S. senators. Summary: The authors argue such a tax could generate substantial public funds and shift how large-scale philanthropy and private foundations operate. Undetermined at this time.