Bill Gross is Seriously Ignorant on the History of Governments and What Makes a Strong Economy

Bill Gross, who is the manager of the largest bond fund of the world, has now urged other members belonging to the “privileged 1%” who have the highest incomes to their credit to support higher state taxes on capital gains and carried interest for helping the economy. As tax attorneys are aware, Gross is the co-chief investment officer and co-founder of the Pacific Investment Management Co. In his latest outlook letter on investment that was issued this Thursday, Gross stated that the super wealthy should be more than willing to support higher rates of taxes especially on capital gains as well as carried interest  for adjusting the marginal rates of income tax.

The Wealthy of America Already Pay Most of the Taxes

Carried interest is what refers to a sizeable portion of the gains in investment realized by equity managers as well as executives at some venture capital companies, hedge funds and real estate. These gains however, are taxed at 20% instead of the top rate of 40% which is applicable for ordinary income that is paid by the highest of earners. Gross also claimed that the easy credit policies have made it easy for the rich to make billions of dollars in cash.

Gross can Pay Higher Taxes if he Wants; He can Mind his Own Business Too

Gross, who is responsible for overseeing assets worth $2 trillion, also stated that billionaires like Stanley Drucken Miller who is the founder of the Duquesne Capital Management which is one of the best performing hedge funds through the last 30 years and Warren Buffet, have also advocated similar proposals. According to these expert minds, the era where capital was taxed at lower rates as compared to labor, should now see an end.

The IRS Takes Extra Checks Gross if You Feel Guilty

Gross also told his tax lawyer friend that he considered himself to be one of this privileged 1% of the population. He claimed that increasing these taxes could go a long way in improving the competitive position of America in comparison with Canada and Germany. He explained that instead of looking at the tax reforms from a point of view of what a huge sum of money the wealthiest pay as taxes, it is important to consider the amount of national income they are privileged enough to make.

You are Free to Move to Either Country Bill Gross

Gross, America became the wealthiest and the strongest country in the world because of capitalism, not because of socialism. Gross, Canada and Germany both have their freedoms because of America. Perhaps Bill Gross should read a history book. Those countries should adopt America’s freedoms; America should not adopt their high tax policies which only lead to less opportunity for their citizens and less liberty.