Rep. Alexandria Ocasio-Cortez, D-n.y., center, listens as President, Donald Trump delivers his State of the Union address to a joint session of Congress on Capitol Hill in Washington, Tuesday, Feb. 5, 2019. (AP Photo/J. Scott Applewhite)
Microsoft co-founder Bill Gates, who has a net worth approaching $100 billion, has hit the fiscal policy as put forward by Alexandria Ocasio-Cortez, saying they miss the bigger picture and can make the tax avoidance.
Speaking on a podcast on tech website The Verge, Gates noted that while the tax rates can be “more progressive,” going to the extreme, as put forward by Ocasio-Cortez, that would tax income above $10 million at a 70% rate, missing the broader scope.
“Certainly, the idea of the government are more effective in terms of how it runs education or social programs, there is a lot of room for improvement there,” Gates said in the podcast. “In terms of revenue collection, you will want to focus not only on the ordinary income rate, because the people who are rich, have a completion of the ordinary income.”
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He continued: “They have an income that is just the value of their securities and that, if they don’t sell it, not as income or as see it, the shows over in the capital gains side. Thus, the ability of hedge fund people, different people — they don’t pay that ordinary income rate.
The one thing that never much pressure on the IRS shows the statistics for the top 400 people with the highest incomes and the interest that they pay. Anyway, you should look at. It’s about a 20 percent rate, so it has nothing to do with the 39.6 marginal ordinary income rate. So it is a misfocus. If you focus on that you’ll miss out on the photo.”
Gates, who retired from the lead of the software giant in 2006 to focus on the Bill & Melinda Gates Foundation, added that there are politicians who are so extreme with their policy proposals, that they would start making, tax-dodging, and certain incentives, while the cause of “income in other countries and that kind of stuff.”
The tech titan has to admit that the tax “more progressive,” including issues such as the estate tax and the tax on capital, the way in which the FICA and Social Security are active. “We can be more progressive, without really threatening the generation of income — what you have to decide how to spread around,” Gates said.
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During the podcast, Gates also weighed in on a number of the ideas that Ocasio-Cortez, and the more progressive lawmakers, including Sen. Bernie Sanders (I-VT) have defended, including the “modern monetary theory,” by saying that the “what crazy talk,” add “and it will come back and bite me.”
As described by the American Monetary Institute (AMI), a non-profit charity, funded to describe monetary reforms for the average citizen, MMT shows a lack of respect for the empirical facts” and ” stretches and twists the meaning of words beyond normal usage.”
Ocasio-Cortez not immediately return a request for comment from Fox News.
Earlier this year, Ocasio-Cortez, who became the youngest woman ever elected to Congress, said in an interview on the “60 Minutes” that her ” Green New Deal can be paid for in part by slapping a tax as high as 70 percent on the top earners.
“But once you get to the tippie tops, on the ten millionth, sometimes you see tax rates as high as 60 percent or 70 percent,” Ocasio-Cortez said. “That does not mean that all $10 million or more are taxed at a very high speed. But it means that if you climb this ladder, you need to contribute more.”
Fox News’ Adam Shaw contributed to this report.