Jeff Sachs: Why We Need a Wealth Tax

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April 24 (Bloomberg) -- Columbia University's Jeffrey Sachs explains why we need a wealth tax. He speaks with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

For those at the top to play a proper role in the american recovery.

You're talking about a wealth task.

Dire as would treat wealth differently -- the irs would treat wealth differently.

We should close the loopholes.

Why is it that some of the richest in the country get the top tax rate of 15%, the so-called carried interest.

Arrive at equity spends a lot of money lobbying -- for no reason other than their political power.

There is not one scintilla of economic sense for this.

Why is it that google gets to keep its international earnings in bermuda tax free when all of the ip was done in the united states and paid for by -- why is it that we have created a corporate tax environment that is so hostile it is encouraging companies like google to go to bermuda?

It is not encouraging it.

It is allowing it.

We have the highest corporate taxes in the world.

And no one pays them because it is a complete game.

Maybe it make sense to bring them down and then people may be paying it them.

Aiken afford to pay a lot -- they can afford to pay a lot more than they do now.

To have -- to say google or apple has intellectual property in the caribbean -- i mean, come on.

Ok, we have limited time and need to get something else.

It is very different to come out as a star athlete making a couple million bucks on the court.

You may not make that next year.

You might get injured.

You might make that for a couple years, and don, it is over, what are you going to do?

Versus being the millionaire who can live off the interest on that money.

One is income and the other is wealth.

Absolutely.

But we don't seem to distinguish between the two at all.

And the concentration of wealth is vastly higher than the concentration of income and the well has been soaring of the top.

This is another reason why having a modest tax -- we have so many billionaires that are able to basically shield their money.

This is part of our massive problem.

We can't even find the most basic services in this country.

We are collapsing at the bottom and our wealth is soaring at the top.

Do you think something like this has a shot of getting through?

Like the private equity carried interest issue.

At the very top, the power is the money.

We have a very corrupt political system.

But the people still have the votes.

I think in the end, it is going to happen.

It is going to happen because people are so disgusted with corruption right now.

They are going, what is going on?

At the end of the day, a lot of americans say, i may not be wealthy, but i aspire to someday be wealthy and i do not like the idea of the government having barehand in there to take more.

I found it incredible that mayor deblasio of new york proposed a tiny tax increase at the very, very top to fund universal primary education and the rich, they went wild.

Oh, that is socialism.

If we have that kind of society, we are not going to make it.

If there is not some sense of responsibility at the very top, because the top have made off like they have never made off.

We have more wealth at the top of income distribution than any other time in american history and they are walking away with it does the supreme court says, yes, spend as much as you want to have all the votes you need.

Most of america is onto this now.

It seems there is a real class warfare issue.

There is.

The very top is fighting the war and winning the war.

Why do they get 15% top tax rate?

The war did not start with the common people.

The war started with the top.

This text has been automatically generated. It may not be 100% accurate.

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