Billionaire Mike Bloomberg proposes tax plan aimed at wealthy

Billionaire Democratic presidential candidate Mike Bloomberg is unveiling a tax plan that would target the wealthy.

The Bloomberg ad to be broadcast during the 2020 Super Bowl. Picture: AP

Billionaire Democratic presidential candidate Mike Bloomberg is unveiling a tax plan that would target the wealthy — increasing rates on capital gains and corporate gains as well as introducing a new 5 per cent surtax on incomes above $US5m ($7.5m).

The former New York City mayor has based his plan on its potential to raise enough revenue to finance his proposals for expanding healthcare, housing, education and infrastructure, among other programs.

“I’m a wealthy guy, I didn’t need a tax cut and so we’re going to have to put a little of that back,” Mr Bloomberg said on Sunday (AEDT) at a campaign stop in Denver. “We need money for infrastructure in this country.”

Campaign officials said the plan would raise about $US5 trillion over 10 years, though that figure could be adjusted higher or lower based on the funding needs of Mr Bloomberg’s policy agenda.

Animating the plan is the idea that wealthier Americans should pay more for programs that would benefit the middle class and impoverished families.

While the plan does not include enough specifics to verify just how much money it would raise, the changes would clearly increase taxes for Mr Bloomberg, who founded an eponymous media company that specialises in financial data and whose net worth is estimated at more than $US50bn.

One of the campaign officials said the plan is more politically feasible than those proposed by other Democratic candidates because Mr Bloomberg would personally be paying more money in taxes, and that could potentially overcome resistance from wealthy Republican donors and give it bipartisan support.

The plan would restore the top personal income tax bracket to 39.6 per cent. It had been reduced to 37 per cent in Donald Trump’s 2017 tax overhaul.

Mr Bloomberg’s proposal would tax capital gains as ordinary income for those earning more than $US1m. It would also introduce a 5 per cent surtax on incomes above $US5m and overhaul the estate tax in order to stop people from avoiding it. Companies would likely pay more as the corporate tax rate would increase to 28 per cent, from 21 per cent, while a minimum tax and other rules would be introduced to stop businesses from stashing profits overseas in tax havens. The Internal Revenue Service would also be given greater resources to audit high-income households.

AP