Bill Gross: "Of Course" the Wealthy Should Pay Higher Taxes, Corporations Too
Add PIMCO founder Bill Gross to the list of wealthy Americans who think they aren't being taxed enough, already.
"Of course we should" pay higher taxes, Gross says. "Higher income groups have enjoyed an enormous privilege ever since the Reagan tax cuts...and actually ever since Kennedy began the process back in the '60s."
Gross admits it's difficult to know what constitutes "wealthy" in America or what federal income tax rate serves as a disincentive to those at the top of the food chain. "But I don't think it's 36%," he says. "I think high-income earners would work well into the 50% tax rate. That would certainly help balance the books going forward."
In addition to tax hikes on the wealthy, "let's raise corporate taxes too," the famed bond fund manager says, a view that runs in direct opposition to the current discussions in Washington.
"Corporations complain and complain and complain and have got the Obama administration suggesting there should be some corporate tax reform," Gross notes. But at just 1% of GDP, corporate taxes are "historically low."
Gross goes on to accuse corporations of "holding governments basically hostage" by threatening to move to another state, or country, if taxes go up. "That's faulty logic and should be tested by politicians going forward. "
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