The Billionaire Backlash: Kamala Harris's Wealthy Donors Revolt Against Proposed Wealth Tax

Kamala Harris's endorsement of a tax that would require the ultra-wealthy to pay 25% on their earnings has sparked outrage among her high-profile donors, who claim it would be detrimental to entrepreneurship. However, the proposed tax, which would affect only the 11,000 richest Americans, is seen by many as a necessary step to generate revenue for crucial social programs and counter the disproportionate influence of the ultra-rich on the political process.

Wealthy Donors Cry Foul Over Proposed Wealth Tax

A Tax Targeting the Mega-Rich

The proposed tax would require individuals with over $100 million in income to pay 25% on their earnings, including the increase in their capital gains, whether or not they have cashed in the asset. This would affect only about 0.05% of the U.S. population, but that tiny sliver holds a staggering $8.5 trillion in wealth, matching the total wealth of the bottom 84% of Americans.

Backlash from Harris's Wealthy Donors

Several of Kamala Harris's wealthy donors have expressed their displeasure with the proposed tax, with one donor, Aaron Levie, the CEO of the cloud storage company Box, describing the plan as "quite punitive." Levie, who has contributed $30,000 to Harris's campaign and plans to give more, is among those who believe the tax would be detrimental to entrepreneurship.

The Golden Years of Growth and High Taxes

However, the claim that higher taxes on the rich would stifle entrepreneurship is questionable. The golden years of America's postwar growth occurred when taxes on the wealthy were far higher than they are today. The fact is, the Democrats will need significant new revenue to address the gaps in the tax code once the Trump tax cuts expire next year.

Plugging Holes in the Tax Code

The Democrats have pledged that no household with an income of less than $400,000 will pay higher taxes. If they succeed in restoring taxes on the rich to the rates that prevailed before the Trump tax cuts but do not raise taxes on anyone else, that would cost the government about $3 trillion over ten years. This revenue is essential to fund crucial initiatives, such as restoring the Child Tax Credit and enacting a comprehensive care agenda, as well as addressing the desperate need for affordable housing.

The Power and Influence of the Ultra-Rich

The outrage from Harris's wealthy donors highlights the disproportionate influence of the ultra-rich on the political process. While most working families are struggling to make ends meet, the filthy rich have more money than they know what to do with. This wealth not only buys a lavish lifestyle but also significant political power, which they are now wielding to oppose a tax that would require them to contribute more to the common good.

Countering the Power of Capital

As the Biden administration has shown, a progressive Democratic administration can take steps to help labor amass more economic and political power, both to directly benefit working people and to counter the influence of the ultra-wealthy. The proposed wealth tax on the mega-rich is one such measure, and it is crucial that Harris and other Democratic leaders stand firm against the backlash from their wealthy donors.