Poll: Majority in US would support wealth tax for very rich

The idea of imposing a wealth tax on the richest Americans has elicited sharply divergent views across a spectrum of politicians, with President Donald Trump branding it socialist and progressive Democratic presidential contenders Senators Elizabeth Warren and Bernie Sanders prominently endorsing it.

But it may have broad public support, according to a Reuters/Ipsos poll that found nearly two-thirds of respondents agree that the very rich should pay more.

Among the 4,441 respondents to the poll, 64% strongly or somewhat agreed that “the very rich should contribute an extra share of their total wealth each year to support public programmes” - the essence of a wealth tax.

Results were similar across gender, race and household income.

While support among Democrats was stronger, at 77%, a majority of Republicans, 53%, also agreed with the idea.

A wealth tax is levied on an individual’s net worth, such as stocks, bonds and real estate, as well as cash holdings, similar in concept to property taxes.

It is separate from an income tax, which applies to wages, interest and dividends, among other sources.

Asked in the poll if “the very rich should be allowed to keep the money they have, even if that means increasing inequality”, 54% of respondents disagreed.

“Rich people have a right to blow their money on Lamborghinis and world-wide cruises or whatever,” said Esin Zimmerman, 53, a lifelong Republican from Madison, Minnesota, who wants higher taxes for the wealthy. “But that money could be used in other ways that help people.”

Ms Zimmerman said she would especially be in favour of a wealth tax that would help pay for government programmes for US military veterans, or help single parents with young children. “It could put the border wall up,” she said.

The results may reflect how the economic changes of the past roughly 20 years, from globalisation to the financial crisis, have shaped attitudes about economic policy.

But the concerns have been climbing since the crisis years of 2007 to 2009.

Ms Warren and Mr Sanders have touted the idea as a way to help pay for major social programmes like Medicare for All and to reverse a stark rise in the share of wealth owned by the very richest Americans, known as the 1%.

- Reuters