Cramer says ‘deaf’ billionaires should proactively support tax reforms

CNBC’s Jim Cramer on Wednesday called on US billionaires to more clearly support the country’s tax code reforms to avoid more liberal legislative proposals from politicians in Washington.

“This administration doesn’t like you, so come up with something proactively that makes sure you don’t get taxed in the way [Sen.] Elizabeth Warren wants you to do it, ”Cramer said, referring to the Massachusetts Democrat who, along with Sen. Bernie Sanders, I-Vt., Proposed a wealth tax for billionaires.

“But… I think they’re very deaf,” Cramer said in “Squawk on the Street”. “I think billionaires are just like, ‘Well, listen, we’re oligarchs, and we can do whatever we want.'”

Cramer said he believed this attitude was wrong, especially under Democratic President Joe Biden, who called for increased taxes on wealthy Americans but did not support proposals to levy an annual tax on the total wealth. Republicans cut taxes for wealthy individuals and businesses during the administration of Biden’s predecessor Donald Trump.

“I think we’re in a time when they don’t seem to realize the pitchforks are coming. This administration is certainly not pro-capitalist, it is pro-labor – much more, I think, than the Obama administration. “, Cramer mentioned. “A lot of billionaires should be a little more vigilant about what’s going to happen in Washington.”

“Elizabeth Warren is going to win this if the billionaires try to fight too hard,” he added.

Cramer’s comments follow Warren Buffett’s announcement earlier Wednesday that he would donate an additional $ 4.1 billion of his Berkshire Hathaway shares to five foundations.

In one letter Accompanying the move, billionaire Berkshire Hathaway’s CEO acknowledged that philanthropy had recently become a “hot topic” and said he believed it was “appropriate” for Congress to occasionally consider how charitable giving is handled by the tax code, “especially with respect to donors who become ‘imaginative’.”

The philanthropic activities of billionaires are back in the spotlight following a report by ProPublica earlier in June which, using confidential IRS files obtained by the news agency, detailed the amount. income taxes paid in recent years by some of the richest people in the world, including Buffett.

Cramer on Wednesday did not detail the specific tax reforms he believes billionaires should be ready to pass. However, he said he believed lawmakers “should look at” strategies in which ultra-rich people pledged their stocks as collateral to take out a personal loan “so that they could create income even if they didn’t sell the stocks. “.

This kind of approach has been discussed in the history of ProPublica. The “Mad Money” host earlier this month said some of the information in the story did. “sick,” and he suggested that the United States impose a surtax on billionaires as a potential way to tackle growing inequalities in the country.

“Maybe you think it’s too brutal. But I got it,” Cramer said on June 11, just days after the ProPublica bombing. “We can no longer let this continue in a democracy.”

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