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.
Elon Musk’s favorite German party, meanwhile, sees nothing wrong in boosting the fortunes of Germany’s most fortunate. The ultra-far-right Alternative for Germany party, the Musk-backed Alternative für Deutschland, is pledginghigher tax relief for capital gains and an end to Germany’s existing inheritance tax.
Current polling is making the former investment banker Friedrich Merz the favorite to become Germany’s next chancellor. His conservative Christian Democratic Union party favors lowering the corporate tax rate and is now polling support from near 30 percent of Germany’s voters. Polls have the anti-immigrant AfD at a bit over 20 percent.
Die Linke has been rising in the pre-election polling since the party unveiled its tax plan, and the party gained 11,000 new members in January. Analysts now see Die Linke likely to finish with about 6 percent of the overall vote tally, maybe enough to prevent Germany’s right-wingers from forming a new government. But the party’s bold tax plan, either way, has no shot at becoming the law of the land in Germany’s next legislative session.
Still, what seems no more than tax-the-rich pie-in-the-sky in one generation can become actual tax policy in the next. In 1917, for instance, a bold group of American progressives proposed a tax rate of 100 percent on annual income over $100,000, the equivalent of nearly $2.5 million in today’s dollars. A generation later, in 1942, President Franklin Roosevelt asked Congress to place that same 100-percent tax rate on America’s most affluent.
Lawmakers didn’t buy FDR’s 100-percent top rate, but they did pass legislation that had America’s richest facing a 94-percent tax on their top-bracket income by 1944. That U.S. top tax rate would hover around 90 percent for the next two decades, years that would see the United States become the world’s first-ever mass-middle-class nation.
