Billionaire Leon Cooperman told CNBC on Wednesday that he believes wealthy people would find ways to prevent Senator Elizabeth Warren from paying wealth tax if it became law. He also argued that there are better mechanisms for increasing federal government revenues.
‘The idea has no merit. It’s silly. It’s probably not legal, “he said on” Squawk Box. “
“When the wealth tax passes, go out and buy yourself some gold because people will rush to find ways to hide their wealth,” added Cooperman.
Cooperman’s action came after the Massachusetts Democrat and other progressives in Congress unveiled their plan for an annual tax of 2%, or 2 cents, on every dollar of people’s assets worth $ 50 million to $ 1 billion. Those with fortunes in excess of $ 1 billion would be subject to an annual tax of 3%, or 3 cents, on every dollar above that threshold.
The proponents of the wealth tax proposal said it would bring in at least $ 3 trillion in revenue over a ten-year period, citing an analysis by the University of California-Berkeley economists Emmanuel Saez and Gabriel Zucman.
“I believe in the progressive income tax structure. I think rich people should pay more,” said Cooperman, but the Omega Family Office chairman thought the focus should be on reforming the existing money-raising systems. For example, he said he is in favor of getting rid of the so-called carry-interest loophole, which benefits hedge fund and private equity fund managers.
“The question that we as a nation must aggregate is what should be the maximum tax rate for wealthy people? Because that will determine the revenue revenue for the government and the government must, in effect, allocate its activity to that revenue revenue,” Cooperman added, noting that he has long stated his willingness to “work for the government six months a year and six months for myself”.
Warren said on CNBC Tuesday that she believes the money brought in by the wealth tax could be “transformative” for the US, enabling investment in early childhood education and infrastructure.
“It is now set up to say that we are not going to collect tax on assets worth less than $ 50,000, so this is not pushy. Find out what their 4-year-old cars are worth, ‘said Warren.
“But it says if you have a fortune over $ 50 million, you pay for it. And if your fortune is less than $ 50 million, you don’t. Good for you anyway,” she added . “I think most people would rather be rich and pay 2 cents. This is not very fancy. It’s really a tax on fortunes of over $ 50 million.”
Cooperman was an outspoken opponent of Warren’s previous pitch for a wealth tax during her unsuccessful campaign for the 2020 Democratic President nomination.
In October 2019, Cooperman wrote a sharply critical letter to Warren, saying that her “slander of the rich is misguided.” Warren’s campaign featured an ad calling for a wealth tax the following month, attacking billionaires, including Cooperman.
After the campaign ad went public, Cooperman told CNBC that the wealth tax is “nearly impossible to control and likely unconstitutional.”
Cooperman, a hedge fund pioneer and son of a Bronx plumber, has signed The Giving Pledge, created by Bill and Melinda Gates and Warren Buffett. When asked by CNBC’s Andrew Ross Sorkin on Wednesday if he would support a reform of a particular tax policy focused on inheritance, Cooperman said, “To be honest, I’m not focused on that, because my plan is to get all my money out to give. upon death. “
Cooperman said he was concerned about the rhetoric that angered wealthy people in the US. ‘We all have to work together to face our problems, and it’s that simple. You have to decide if you’re a capitalist or if you’re a socialist, he said.