Most US Millionaires Want to Pay Higher Taxes

A new survey shows that two-thirds of American millionaires would welcome paying more taxes to help reduce income inequality.

Most US Millionaires Want to Pay Higher Taxes Photo (cc) by LianaAn

It appears that some of the wealthy want to be part of the solution when it comes to income inequality.

According to CNBC’s first-ever millionaire survey – which polled 514 American millionaires — more than half of them identify income inequality as a “major problem” in the U.S.

And this may surprise you: Nearly two-thirds of millionaires are in favor of both an increase in the minimum wage and higher taxes on the wealthy to reduce inequality.

Robert Frank of CNBC wrote:

Far from being a purely self-interested voting bloc — American millionaires have complicated views when it comes to the wealth gap and opportunity in America. They are unashamed of their own wealth and attribute their success to hard work, smart investing and savings. They also believe that anyone in America can get wealthy if they work hard.

However, the majority of the rich also say they recognize that cultural and family issues, as well as insufficient access to education, can be prohibitive to financial success.

“They advocate improved education, higher taxes on the wealthy and better savings incentives for the poor and middle class as important changes that would reduce inequality,” Frank wrote.

In the end, politics plays a major role in how millionaires view inequality and taxes. Not surprisingly, more than two times as many Democratic millionaires (78 percent) than Republican millionaires (31 percent) support higher taxes on the wealthy. The same is true for a hike in the minimum wage.

Frank wrote:

The bottom line: American millionaires, in general, agree that inequality is a problem. But when it comes to solutions, millionaires are just as split along political lines as the rest of the country.

Earlier this week, we told you that the Organisation for Economic Co-operation and Development recommended raising taxes on the rich by “reducing tax deductions that benefit top earners and taxing all compensation, including capital gains, as ordinary income” as a way to ensure a more equal distribution of wealth. The OECD noted that the top 1 percent in the U.S. make at least 20 percent of all income.

Are you surprised that many of the wealthy would say yes to more taxes as an effort to narrow the income gap? Share your thoughts below or on our Facebook page.

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