Barry Sternlicht calls Warren and Sanders wealth tax a ‘crazy idea’

Barry Sternlicht, co-founder of the privately held Starwood Capital global investment firm, believes a wealth tax, as envisioned by Democratic presidential candidates Sens. The wealth tax from Sanders, a Vermont democratic socialist, would be progressive, starting at 1% for household net worth of more than $32 million and ending at 8% on wealth over $10 billion. The plan from Warren, of Massachusetts, calls for a 2% tax on household net worth of more than $50 million and a 3% tax on net worth ov


Barry Sternlicht, co-founder of the privately held Starwood Capital global investment firm, believes a wealth tax, as envisioned by Democratic presidential candidates Sens.
The wealth tax from Sanders, a Vermont democratic socialist, would be progressive, starting at 1% for household net worth of more than $32 million and ending at 8% on wealth over $10 billion.
The plan from Warren, of Massachusetts, calls for a 2% tax on household net worth of more than $50 million and a 3% tax on net worth ov
Barry Sternlicht calls Warren and Sanders wealth tax a ‘crazy idea’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-18  Authors: matthew j belvedere, jessica bursztynsky
Keywords: news, cnbc, companies, tax, calls, zucman, wealth, net, warren, worth, sanders, crazy, plan, barry, capital, sternlicht, starwood, idea


Barry Sternlicht calls Warren and Sanders wealth tax a 'crazy idea'

Barry Sternlicht, co-founder of the privately held Starwood Capital global investment firm, believes a wealth tax, as envisioned by Democratic presidential candidates Sens. Elizabeth Warren and Bernie Sanders, would not be feasible.

“I think it’s a crazy idea,” Sternlicht said Friday on CNBC’s “Squawk Box.”

The wealth tax from Sanders, a Vermont democratic socialist, would be progressive, starting at 1% for household net worth of more than $32 million and ending at 8% on wealth over $10 billion. The plan from Warren, of Massachusetts, calls for a 2% tax on household net worth of more than $50 million and a 3% tax on net worth over $1 billion.

Sternlicht, chairman and CEO of Starwood Capital, also reacted to a radical proposal from two University of California, Berkeley economics professors on how to account for the wealth of people who derive large sums of their net worth from private companies.

UC Berkeley’s Emmanuel Saez and Gabriel Zucman, who helped design Warren’s tax plan, proposed that the Internal Revenue Service calculate values for private companies that can be figured into the complete wealth picture of taxpayers.

Questioning how the IRS would be able to value his business, Sternlicht said, “It’s impossible to do — multiples, changes in interest rates. It’s almost an impossible thing to do.”

Sternlicht started Starwood Capital in 1991. It currently has more than $60 billion in assets in global real estate and hotel management, as well as the oil and gas sectors and energy infrastructure. Starwood Capital created the Starwood Hotels chain, which is now part of Marriott International.

If the Saez-Gabriel Zucman plan were to become a reality, Sternlicht said, “You’re going to empower a lot of accountants. They’re going to be the biggest, fastest-growing industry in the world.”


Company: cnbc, Activity: cnbc, Date: 2019-10-18  Authors: matthew j belvedere, jessica bursztynsky
Keywords: news, cnbc, companies, tax, calls, zucman, wealth, net, warren, worth, sanders, crazy, plan, barry, capital, sternlicht, starwood, idea


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Would Trump quit? One Wall Street firm looks at the potential and its market ramifications

Despite the unlikelihood that Trump would shrink from the battle, one Wall Street firm has put together a what-if case should he decide to resign before being impeached. Market impact likely would be minimal, according to the analysis, which sees the emergence of Vice President Mike Pence as the GOP standard-bearer providing stability for Wall Street and the economy. Trump has been aggressive in his own defense, tweeting Thursday morning that the impeachment inquiry is “The Greatest Witch Hunt i


Despite the unlikelihood that Trump would shrink from the battle, one Wall Street firm has put together a what-if case should he decide to resign before being impeached.
Market impact likely would be minimal, according to the analysis, which sees the emergence of Vice President Mike Pence as the GOP standard-bearer providing stability for Wall Street and the economy.
Trump has been aggressive in his own defense, tweeting Thursday morning that the impeachment inquiry is “The Greatest Witch Hunt i
Would Trump quit? One Wall Street firm looks at the potential and its market ramifications Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: jeff cox
Keywords: news, cnbc, companies, analysis, firm, raymond, wall, quit, president, tax, street, walk, ramifications, impeachment, potential, pence, trump, market, case, looks


Would Trump quit? One Wall Street firm looks at the potential and its market ramifications

Despite the unlikelihood that Trump would shrink from the battle, one Wall Street firm has put together a what-if case should he decide to resign before being impeached.

Trump’s instincts, of course, are to fight, and he’s given no indication so far that he’s about to back down as the Democratic leadership builds its case . The impeachment forces are banking that they can prove Trump made a quid pro quo deal with Ukrainian leaders to withhold aid in exchange for an investigation into Hunter Biden, the son of Democratic presidential front-runner Joe Biden.

As Donald Trump faces the toughest political test of his presidency, he essentially has two options: Dig in and fight, or walk away before he faces an almost certain impeachment in the House of Representatives.

“While we acknowledge this is a low probability event, the question we are hearing more often in DC is: What if President Trump decides to walk away from the presidency and voluntarily resigns prior to being impeached and/or having to release his tax returns?” wrote Chris Meekins and Ed Mills, health policy research analysts at Raymond James.

Market impact likely would be minimal, according to the analysis, which sees the emergence of Vice President Mike Pence as the GOP standard-bearer providing stability for Wall Street and the economy.

The White House declined comment on the analysis. Trump has been aggressive in his own defense, tweeting Thursday morning that the impeachment inquiry is “The Greatest Witch Hunt in American History.”

Nevertheless, should his approach change and he decides to step down, “Trump would not go down in history as one of the only impeached presidents,” the Raymond James analysts added. “His tax returns, which he does not want to give to become public while President … kind of become a non-issue. Trump can go make even more money and maybe start his own media network, which reportedly was the initial plan.”

In the scenario, Raymond James imagines Trump using this line of reasoning to further justify walking away:

I have done everything I set out to do as President. America is great again. We have record low unemployment, the market is doing amazing, we have exited endless foreign wars, and I’ve stopped other countries like China from taking advantage of us in trade deals. We passed massive tax cuts and drug prices are down for the first time ever. I’m not one of these lifetime politicians. I’m ready to return to my business and spend more time with my family. This harassment of me by Democrats has really hurt Melania and my kids.

A Trump resignation would mean Pence immediately would assume the Oval Office.

In that case, the analysis figures Pence would tap Nikki Haley, the popular former United Nations ambassador and South Carolina governor, as his running mate.


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: jeff cox
Keywords: news, cnbc, companies, analysis, firm, raymond, wall, quit, president, tax, street, walk, ramifications, impeachment, potential, pence, trump, market, case, looks


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Elizabeth Warren’s real ‘beef with billionaires’

Aside from launching countless beef memes on social media, Warren’s comments laid bare the division in the Democratic party over how to tax the wealthy. O’Rourke, former Vice President Joe Biden and Sen. Amy Klobuchar want modest increases or changes in income tax rates, essentially preserving the basic tax code. We need a wealth tax in order to make investments in the next generation.” So far there is broad public support for Warren’s wealth tax plan. Polls show that at least 60% of Americans s


Aside from launching countless beef memes on social media, Warren’s comments laid bare the division in the Democratic party over how to tax the wealthy.
O’Rourke, former Vice President Joe Biden and Sen. Amy Klobuchar want modest increases or changes in income tax rates, essentially preserving the basic tax code.
We need a wealth tax in order to make investments in the next generation.”
So far there is broad public support for Warren’s wealth tax plan.
Polls show that at least 60% of Americans s
Elizabeth Warren’s real ‘beef with billionaires’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: robert frank
Keywords: news, cnbc, companies, beef, elizabeth, wealthy, tax, pay, billionaires, income, built, america, warrens, real, warren, wealth


Elizabeth Warren's real 'beef with billionaires'

Sen. Elizabeth Warren (D-MA) speaks during the Democratic Presidential Debate at Otterbein University on October 15, 2019 in Westerville, Ohio. A record 12 presidential hopefuls are participating in the debate hosted by CNN and The New York Times.

Sen. Elizabeth Warren may have a new slogan: “Where’s the beef?”

During Tuesday’s Democratic debate, Warren had a quick response to a statement from Beto O’Rourke. The former Texas congressman said Warren was being “punitive” of the wealthy in her tax plan and rhetoric.

“I’m really shocked at the notion that anyone things I’m punitive,” she said. “Look I don’t have a beef with billionaires.”

Warren then proceeded to explain her beef with billionaires – that they owe much of their success to the rest of America and need to hand over more of their accumulated fortunes to the Internal Revenue Service.

“My problem is you made a fortune in America – you had a great idea, you got out there and worked for it – good for you,” she said. “But you built that fortune in America, I guarantee, you built it in part using workers all of us helped educate. You built it getting your goods to market on roads and bridges all of us helped pay for. You built it, at least in part, protected by police and firefighters all of us help pay the salaries for.”

She added that her wealth tax of 2% on wealth over $50 million and 3% on wealth over $1 billion was a small price for the super rich to pay for lifting up the rest of America.

The 1%, she said just has to pitch in “two cents so every other kid in America has a chance to make it.”

Aside from launching countless beef memes on social media, Warren’s comments laid bare the division in the Democratic party over how to tax the wealthy. O’Rourke, former Vice President Joe Biden and Sen. Amy Klobuchar want modest increases or changes in income tax rates, essentially preserving the basic tax code.

Warren, by contrast, wants to overhaul the tax system with a wealth tax that would take $200 billion a year from the rich by imposing an annual tax on accumulated wealth rather than income. The old system of taxing income is no longer working, she argued, as the wealthy pile up ever more wealth without paying taxes on their asset gains. Her real beef, it seems, is not so much with billionaires but with the tax system that gives preferential treatment – through the lower-capital gains tax and other provisions – to entrepreneurs, executives and investors who make money from money rather than wages.

“Taxing income is not going to get you where you need to be the way taxing wealth does,” Warren said. “The rich are not like you and me. The really, really billionaires (sic) are making their money off their accumulated wealth, and it just keeps growing. We need a wealth tax in order to make investments in the next generation.”

So far there is broad public support for Warren’s wealth tax plan. Polls show that at least 60% of Americans support a tax on wealth, which may not be surprising since only about 75,000 families in the U.S. have enough wealth to be subject to Warren’s wealth tax. And there is no denying that the wealth of the wealthy has soared over the past decade, as many Americans have struggled with modest wage gains.

America’s billionaires had a collective net worth of about $3 trillion in 2019, more than doubling over the past decade, according to Forbes.

The question for Democrats and voters heading into the spring will be just how much the wealthy and those billionaires should pay – and how they should pay it.


Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: robert frank
Keywords: news, cnbc, companies, beef, elizabeth, wealthy, tax, pay, billionaires, income, built, america, warrens, real, warren, wealth


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Couples weigh ‘strategic divorce’ to save on taxes

Elizabeth Warren and Bernie Sanders are stirring up chatter around so-called strategic divorce to avoid the levy. The marriage penalty — that is, a higher tax liability after a high-income couple files jointly — kicks in for taxpayers with taxable income in the 37% tax bracket. These are joint filers with at least $612,350 in taxable income during 2019. Why a strategic divorceGetty ImageThere are a handful of situations, especially for those who are not mega-rich, why a couple might want to divo


Elizabeth Warren and Bernie Sanders are stirring up chatter around so-called strategic divorce to avoid the levy.
The marriage penalty — that is, a higher tax liability after a high-income couple files jointly — kicks in for taxpayers with taxable income in the 37% tax bracket.
These are joint filers with at least $612,350 in taxable income during 2019.
Why a strategic divorceGetty ImageThere are a handful of situations, especially for those who are not mega-rich, why a couple might want to divo
Couples weigh ‘strategic divorce’ to save on taxes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: darla mercado
Keywords: news, cnbc, companies, save, couple, taxable, split, tax, assets, spouse, financial, income, weigh, couples, strategic, divorce, retirement, taxes


Couples weigh 'strategic divorce' to save on taxes

Peter Dazeley | Photographer’s Choice | Getty Images

Here’s an awkward question for your spouse: Would you be willing to get divorced to save a few dollars? Proposed wealth taxes from presidential candidates Sens. Elizabeth Warren and Bernie Sanders are stirring up chatter around so-called strategic divorce to avoid the levy. The Tax Cuts and Jobs Act, which went into effect in 2018, has also spurred similar discussion among the highest earners, as the new law still subjects them to the so-called marriage penalty. The marriage penalty — that is, a higher tax liability after a high-income couple files jointly — kicks in for taxpayers with taxable income in the 37% tax bracket. These are joint filers with at least $612,350 in taxable income during 2019. In that case, you might be better off being single, at least in the eyes of the IRS. While breaking up might make sense on paper, financial advisors warn that the move could have unexpected ramifications that will dent couples’ financial security. “It’s the unforeseen consequences of these things that surprise people,” said CPA and certified financial planner Tim Steffen in Milwaukee. “We’re talking about the financial side, but you have the social aspect of it, too.”

Why a strategic divorce

Getty Image

There are a handful of situations, especially for those who are not mega-rich, why a couple might want to divorce on paper. For instance, an ailing spouse in need of nursing home care might have too much in assets to qualify for Medicaid. “The couple has a choice, where they can slowly draw down their assets, exhaust their retirement accounts and pay down the bills,” said Stacy Francis, a CFP and founder of Francis Financial in New York. “Or they can get a divorce that will allow the sick partner to have assets that are so low they can potentially qualify for Medicaid,” she said.

Even if it’s on amicable terms, are you going to do something that gives away your control of that business from a voting power perspective when you get divorced? Jeffrey Levine CPA and director of financial planning at BluePrint Wealth Alliance

Another reason why spouses might split is to help a child qualify for financial aid. That’s because the custodial parent is the one who is responsible for filling out the Free Application for Federal Student Aid “If that custodial parent has the lower income and lower assets, you could walk away with more federal aid for college than you would as a married couple,” said Francis. Finally, another possible upside of splitting: Assuming both partners are high earners, such that their taxable income is in the 37% tax bracket, the two might end up in lower brackets if they aren’t married. A couple filing jointly with income of $1 million – each spouse earning $500,000 — would pay nearly $900 more in taxes, compared to what they’d owe if each partner were single, according to the Tax Foundation.

What’s at stake

Splitting up might fix one problem, but it may trip up plenty of financial landmines. Here are a few. Your retirement benefits. A breadwinner who has access to a defined benefit pension might have access to joint and survivor benefits — an income payout to his or her spouse upon retirement. In a divorce, both parties will have to decide how to split the pension, as it may be considered a marital asset. A qualified domestic relations order details the way retirement benefits are to be split. Further, if a couple splits up, the non-working spouse loses the advantage of getting contributions to his or her spousal individual retirement account and spousal Roth IRA. Currently, a working spouse can put away up to $6,000 in an IRA for a non-working spouse, plus $1,000 if he or she is 50 or older. The two must file jointly and be married. Here’s another surprise: Spouses are generally the automatic beneficiary for a 401(k) plan; they need to sign a waiver in order allow someone else to receive those funds.


Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: darla mercado
Keywords: news, cnbc, companies, save, couple, taxable, split, tax, assets, spouse, financial, income, weigh, couples, strategic, divorce, retirement, taxes


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People are willing to pay higher airfare for this reason–and it’s not extra legroom

When it comes to buying airfare, travelers are typically eager to find the best deals, but recent research shows a growing exception to this thrifty tradition. What the study found: They would be willing to pay more for airline tickets if it meant helping the environment. Knowing the extra money would be used to address carbon emissions, participants responded happily — but how the fee was written was key to their willingness to pay it. For example, the majority of participants chose the more ex


When it comes to buying airfare, travelers are typically eager to find the best deals, but recent research shows a growing exception to this thrifty tradition.
What the study found: They would be willing to pay more for airline tickets if it meant helping the environment.
Knowing the extra money would be used to address carbon emissions, participants responded happily — but how the fee was written was key to their willingness to pay it.
For example, the majority of participants chose the more ex
People are willing to pay higher airfare for this reason–and it’s not extra legroom Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: elizabeth gravier
Keywords: news, cnbc, companies, ticket, pay, tax, higher, tickets, extra, flight, legroom, described, carbon, study, reasonand, participants, airfare, fee, willing


People are willing to pay higher airfare for this reason–and it's not extra legroom

When it comes to buying airfare, travelers are typically eager to find the best deals, but recent research shows a growing exception to this thrifty tradition.

In a new study from the University of British Columbia Sauder School of Business, people pledged to buy more expensive flights for a particular reason, and it had nothing to do with personal comfort. What the study found: They would be willing to pay more for airline tickets if it meant helping the environment.

The study, conducted with the Environmental Defense Fund, surveyed more than 1,800 U.S. participants online and assessed their reactions to a $14 carbon fee that was “presented to them in several different ways at the time of a hypothetical ticket purchase.” Knowing the extra money would be used to address carbon emissions, participants responded happily — but how the fee was written was key to their willingness to pay it.

Participants responded better when the fee was described as a “carbon offset,” rather than a tax, and when the carbon pricing was directed at airplane fuel producers rather than consumers.

For example, the majority of participants chose the more expensive flight ticket with a fee described as a “carbon offset for aviation fuel production and import” over a flight ticket with a fee described as a “carbon tax for airplane travel.” They even chose the former over cheaper flight tickets that had no $14 fee attached to them at all, further indicating an inclination to pay the price for polluting the environment.


Company: cnbc, Activity: cnbc, Date: 2019-10-16  Authors: elizabeth gravier
Keywords: news, cnbc, companies, ticket, pay, tax, higher, tickets, extra, flight, legroom, described, carbon, study, reasonand, participants, airfare, fee, willing


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Trump should unveil an ‘aggressive tax cut’ in 2020: Forbes Media

Trump should unveil an ‘aggressive tax cut’ in 2020: Forbes Media4 Hours AgoSteve Forbes of Forbes Media discusses potential tax cuts in the U.S., India’s economy and Brexit.


Trump should unveil an ‘aggressive tax cut’ in 2020: Forbes Media4 Hours AgoSteve Forbes of Forbes Media discusses potential tax cuts in the U.S., India’s economy and Brexit.
Trump should unveil an ‘aggressive tax cut’ in 2020: Forbes Media Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, tax, media, trump, unveil, cut, media4, indias, economy, hours, aggressive, potential, 2020, forbes


Trump should unveil an 'aggressive tax cut' in 2020: Forbes Media

Trump should unveil an ‘aggressive tax cut’ in 2020: Forbes Media

4 Hours Ago

Steve Forbes of Forbes Media discusses potential tax cuts in the U.S., India’s economy and Brexit.


Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, tax, media, trump, unveil, cut, media4, indias, economy, hours, aggressive, potential, 2020, forbes


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This major tax deadline is today. What you need to know

FatCamera | E+ | Getty ImagesIf you asked the IRS for six more months to work on your 2018 tax return, you’re about to run out of time. This spring, about 15 million taxpayers asked the IRS for an extension on their 2018 tax return. Procrastinators take heed: If you miss this deadline, you’re on the hook for a 5% failure to file penalty. For instance, the state and local tax deduction is now capped at $10,000. More than 15 million taxpayers took this deduction on their 2018 tax return as of July


FatCamera | E+ | Getty ImagesIf you asked the IRS for six more months to work on your 2018 tax return, you’re about to run out of time. This spring, about 15 million taxpayers asked the IRS for an extension on their 2018 tax return. Procrastinators take heed: If you miss this deadline, you’re on the hook for a 5% failure to file penalty. For instance, the state and local tax deduction is now capped at $10,000. More than 15 million taxpayers took this deduction on their 2018 tax return as of July
This major tax deadline is today. What you need to know Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: darla mercado
Keywords: news, cnbc, companies, today, filers, know, extension, taxpayers, major, return, 2018, need, youre, tax, deduction, deadline, irs


This major tax deadline is today. What you need to know

FatCamera | E+ | Getty Images

If you asked the IRS for six more months to work on your 2018 tax return, you’re about to run out of time. This spring, about 15 million taxpayers asked the IRS for an extension on their 2018 tax return. While those filers had to pay their projected taxes by April 15, they had to until Oct. 15 to complete and submit their returns. Procrastinators take heed: If you miss this deadline, you’re on the hook for a 5% failure to file penalty. Even with the extra time, accountants are still contending with last-minute filers and additional complexity from the Tax Cuts and Jobs Act, which went into effect in 2018.

“We are getting through extension season — a nightmare,” said Dan Herron, CPA and principal of Elemental Wealth Advisors in San Luis Obispo, California. “We have a long way to go in terms of understanding tax reform.” Changes stemming from the new tax code include the elimination of personal exemptions and the near-doubling of the standard deduction. Certain itemized deductions are now subject to new limitations, as well. For instance, the state and local tax deduction is now capped at $10,000. Here’s what taxpayers should know if they’re about to hit that extension deadline.

A new tax break

UberImages | iStock | Getty Images

There are several reasons why filers sought more time. For instance, investors in partnerships awaited Schedule K-1 forms from those businesses. These documents spell out the investor’s share of income from the partnership, and they often don’t arrive until late spring. In addition, small-business owners — including the people who owned those partnerships — were trying to determine whether they qualified for the new 20% qualified business income deduction. More than 15 million taxpayers took this deduction on their 2018 tax return as of July 25, the IRS found. The rules around the so-called QBI deduction were still in flux for most of 2018 and part of 2019. This was a case where it was better to wait for certainty, accountants said. “While we have an idea on a client’s situation as to whether they’re a trade or business, we were waiting until later for additional guidance,” said Chris Hesse, CPA and chair of the American Institute of CPAs’ tax executive committee. “We think your risk goes down if we wait as long as possible to file,” he said.

Next year’s blueprint


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: darla mercado
Keywords: news, cnbc, companies, today, filers, know, extension, taxpayers, major, return, 2018, need, youre, tax, deduction, deadline, irs


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This chart shows just how much Elizabeth Warren and Bernie Sanders want to go after billionaires

Senator Bernie Sanders joins former Vice President Joe Biden and Senator Elizabeth Warren onstage before the start at the 2020 Democratic U.S. presidential debate in Houston, Texas, U.S. September 12, 2019. A new analysis of 2020 Democratic candidates’ tax plans reveals a stark difference in how much presidential hopefuls, particularly Sens. Elizabeth Warren, D-Mass., and Bernie Sanders, I-Vt., want to go after billionaires. Their critics are also skeptical of how effectively the government can


Senator Bernie Sanders joins former Vice President Joe Biden and Senator Elizabeth Warren onstage before the start at the 2020 Democratic U.S. presidential debate in Houston, Texas, U.S. September 12, 2019. A new analysis of 2020 Democratic candidates’ tax plans reveals a stark difference in how much presidential hopefuls, particularly Sens. Elizabeth Warren, D-Mass., and Bernie Sanders, I-Vt., want to go after billionaires. Their critics are also skeptical of how effectively the government can
This chart shows just how much Elizabeth Warren and Bernie Sanders want to go after billionaires Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: ganesh setty, valerie block
Keywords: news, cnbc, companies, tax, billionaires, bernie, plans, shows, democratic, chart, sanders, economists, zucman, warren, wealth, president, billion, elizabeth


This chart shows just how much Elizabeth Warren and Bernie Sanders want to go after billionaires

Senator Bernie Sanders joins former Vice President Joe Biden and Senator Elizabeth Warren onstage before the start at the 2020 Democratic U.S. presidential debate in Houston, Texas, U.S. September 12, 2019.

A new analysis of 2020 Democratic candidates’ tax plans reveals a stark difference in how much presidential hopefuls, particularly Sens. Elizabeth Warren, D-Mass., and Bernie Sanders, I-Vt., want to go after billionaires.

In determining the effective tax rate each income group pays, economists Gabriel Zucman and Emmanuel Saez take into account all available information that 2020 front-runners, including former Vice President Joe Biden, have said on the campaign trail and on their respective websites. Sanders, according to the economists’ analysis, would tax the income of the wealthiest 400 in America at nearly 100%.

The candidates’ plans vary widely, and so the economists also treat private health insurance premiums as a tax on households. The analysis also assumes different rates of tax evasion and avoidance, according to their methodology.

Zucman and Saez serve as policy advisors for both the Warren and Sanders campaigns.

The chart illustrates why some on Wall Street have sounded the alarm on the possibility of Warren or Sanders becoming president instead of Biden, who is known to be more moderate and business-friendly.

The economists have their critics, too. For instance, former Treasury Secretary Larry Summers and Natasha Sarin, assistant professor at the University of Pennsylvania, view Zucman and Saez’s estimates as overly optimistic. Their critics are also skeptical of how effectively the government can enforce a wealth tax.

The main reason for such a large difference between Biden’s plan and the plans of Warren and Sanders, who calls himself a democratic socialist, has to do with proposed wealth taxes, Zucman said in an email.

Biden has not put out a formal tax plan yet, whereas Sanders’ proposed wealth tax, for example, has a tax rate up to 8% for wealth above $10 billion. Warren, meanwhile, proposes a 2% annual tax on net worth between $50 million and $1 billion, with an additional 1% levied on net worth above $1 billion.


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: ganesh setty, valerie block
Keywords: news, cnbc, companies, tax, billionaires, bernie, plans, shows, democratic, chart, sanders, economists, zucman, warren, wealth, president, billion, elizabeth


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Airlines slam proposals to ban air mile programs and tax frequent flyers

The CCC is an independent body that advises the U.K. government on how to build a low carbon economy. Among recommendations was a call for the U.K. government to “introduce a ban on air miles and frequent flyer loyalty schemes that incentivise excessive flying.” The report also urged lawmakers to introduce a levy targeting frequent flyers, noting that an estimated 15% of the British population took 70% of the country’s flights. The level of tax would correspond to air miles traveled over a three


The CCC is an independent body that advises the U.K. government on how to build a low carbon economy. Among recommendations was a call for the U.K. government to “introduce a ban on air miles and frequent flyer loyalty schemes that incentivise excessive flying.” The report also urged lawmakers to introduce a levy targeting frequent flyers, noting that an estimated 15% of the British population took 70% of the country’s flights. The level of tax would correspond to air miles traveled over a three
Airlines slam proposals to ban air mile programs and tax frequent flyers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: chloe taylor
Keywords: news, cnbc, companies, tax, air, report, frequent, emissions, slam, flyers, airlines, levy, carbon, ban, aviation, programs, miles, proposals, mile


Airlines slam proposals to ban air mile programs and tax frequent flyers

A Boeing Co. 747 passenger aircraft, operated by British Airways, takes at Heathrow airport in London, U.K. Chris Ratcliffe | Bloomberg | Getty Images

Airlines operating in the U.K. have dismissed a report that called for air miles programs to be banned and additional taxes applied to frequent flyers. In a report published Thursday by Imperial College London for the Committee on Climate Change (CCC), academics proposed several measures that governments should implement to reduce the impact aviation was having on the environment. The CCC is an independent body that advises the U.K. government on how to build a low carbon economy. “Flying is a uniquely high-impact activity and is the quickest and cheapest way for a consumer to increase their carbon footprint,” the report’s authors said before adding, “Low-carbon aviation technology is expected to remain technically unfeasible and so it is vital to restrain rising demand.” Among recommendations was a call for the U.K. government to “introduce a ban on air miles and frequent flyer loyalty schemes that incentivise excessive flying.” The report also urged lawmakers to introduce a levy targeting frequent flyers, noting that an estimated 15% of the British population took 70% of the country’s flights. The level of tax would correspond to air miles traveled over a three-year period, as opposed to the number of flights taken. According to the report, the proposed frequent flyer levy would discourage leisure travelers from booking “much more damaging long-haul flights.” Travel for work would not count towards the frequent flyer tax, researchers said.

Industry backlash

Speaking to CNBC on the phone on Tuesday, a spokesperson for the U.K.’s Board of Airline Representatives — an industry body representing most of the airlines operating in Britain — said there was “not really any rationale” for the report’s recommendations to be implemented. “This is a drop in the ocean as to what can be done by the government,” they said. Meanwhile, in an emailed statement, a spokesperson for trade body Airlines U.K., whose members include British Airways, Ryanair and Virgin Atlantic, said the proposals would cause economic and reputational harm. “U.K. aviation has a robust plan to cut aviation carbon emissions and get to net zero by 2050 without the need to price people out of air travel or put the U.K. at a competitive disadvantage,” they told CNBC on Tuesday. “We should be focusing on the huge potential for the U.K. to become a world leader in new innovation and the many exciting developments around aircraft and engine technology, sustainable aviation fuels and the new emerging carbon markets. Working with government we can achieve this together without resorting to the kind of unilateral, demand side measures that will damage the U.K.’s reputation internationally and potentially lead to carbon leakage.” The CCC report claimed that the proposed tax would not impact ticket prices for most flyers. “An Air Miles Levy which escalates with the air miles travelled by an individual within a three year accounting period could provide strong price signals to curb some demand by less price-sensitive frequent flyers, encourage shifting from long-haul to short-haul destinations and fund research into low-carbon aviation technology, while sparing the large majority of travellers any extra cost,” it said. The authors also suggested that the levy should take into account the higher emissions attached to business and first class tickets, alleging that more spacious cabins and unfilled seats meant emissions for first class tickets can have seven times the emissions of an economy ticket.

Advertising overhaul


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: chloe taylor
Keywords: news, cnbc, companies, tax, air, report, frequent, emissions, slam, flyers, airlines, levy, carbon, ban, aviation, programs, miles, proposals, mile


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A landmark German tax fraud case could ripple through the finance industry

German papers have called it the most complicated tax fraud trial in modern German history, but the cum-ex scandal could have implications for the entire financial services industry. The two bankers, Martin Shields and Nicholas Diable, are serving as both defendants and star witnesses in the trial for 24 instances of serious tax fraud. “Tax arbitrage structuring is commonplace in many financial organizations and this is just another way of circumventing tax regulations,” he said. Nearly 500 cum-


German papers have called it the most complicated tax fraud trial in modern German history, but the cum-ex scandal could have implications for the entire financial services industry. The two bankers, Martin Shields and Nicholas Diable, are serving as both defendants and star witnesses in the trial for 24 instances of serious tax fraud. “Tax arbitrage structuring is commonplace in many financial organizations and this is just another way of circumventing tax regulations,” he said. Nearly 500 cum-
A landmark German tax fraud case could ripple through the finance industry Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: elliot smith
Keywords: news, cnbc, companies, landmark, german, bankers, ripple, financial, euros, case, finance, trading, industry, fraud, cumex, billion, germany, tax, trial


A landmark German tax fraud case could ripple through the finance industry

Two British former investment bankers are on trial in Germany for their role in orchestrating an equity trading scheme known as “cum-ex” between 2006 and 2011, which pocketed hundreds of millions of dollars from taxpayers. German papers have called it the most complicated tax fraud trial in modern German history, but the cum-ex scandal could have implications for the entire financial services industry. The two bankers, Martin Shields and Nicholas Diable, are serving as both defendants and star witnesses in the trial for 24 instances of serious tax fraud. In cum-ex trades, shares with and without dividend rights were quickly traded between various market participants just before the payout date for the dividend, allowing traders to reclaim double the taxes. Financial institutions in essence exploited a legal loophole which allowed two parties to simultaneously claim ownership of the same shares, therefore allowing both to claim tax rebates to which they were not entitled. Authorities have since deemed the reclaims illegitimate, but at the time of the trades, this was less black and white, and a vast network of traders, analysts and lawyers were thought to be involved in the practice throughout the continent.

Picture taken on March 17, 2019 shows the headquarters of German banks Deutsche Bank (L) and Commerzbank in Frankfurt am Main, western Germany. FRANK RUMPENHORST | DPA | Getty Images

Julian Dixon, CEO of trading compliance technology provider Napier, told CNBC that the ripple effect of the cum-ex case could be far reaching. “Tax arbitrage structuring is commonplace in many financial organizations and this is just another way of circumventing tax regulations,” he said. “Organizations will have taken a view on the products before they are approved, and this is done by committee — it’s too early to see which banks have been involved in this or similar schemes at this time.” Dixon, who previously worked in investment banking for over 20 years with Deutsche Bank, J.P. Morgan and Commerzbank, said financial institutions had always sought to mitigate tax liabilities for clients by finding legal loopholes, particularly in cross-border tax. “These schemes are dreamed up by individuals, but they have to pass muster of a new product committee (NPC) in any financial organization. Thus these individuals rarely work without the knowledge of their employer,” he explained. The cum-ex deals orchestrated by the two British bankers on trial in Bonn eventually led to a tax loss of 400 million euros ($443 million). However, the wider scheme carried out in the first decade of the 21st century, and unearthed in 2017, is thought to have cost state coffers across Europe, including at least 10 countries outside Germany, over $60 billion. Nearly 500 cum-ex deals worth around 5.5 billion euros are being investigated in Germany, according to the German Finance Ministry. Around 2.4 billion euros has already been recovered by the tax authorities.

‘Institutional scale’


Company: cnbc, Activity: cnbc, Date: 2019-10-14  Authors: elliot smith
Keywords: news, cnbc, companies, landmark, german, bankers, ripple, financial, euros, case, finance, trading, industry, fraud, cumex, billion, germany, tax, trial


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