The plans of Massachusetts Democratic Sen. Elizabeth Warren and independent Vermont Sen. Bernie Sanders' to tax the rich may have drawn out yet another billionaire critic from the business community: the founder of financial investment management firm the Charles Schwab Corporation.
During an interview for an upcoming episode on Bloomberg TV, legendary investor and financial executive Charles Schwab called the candidates' wealth tax proposals "wrong-directed in many ways." He told the outlet that tax-the-rich schemes don't take into account the fact that many wealthy individuals contribute to society through philanthropy.
As opposed to taxes levied on income and payrolls, a wealth tax would target the value of accumulated assets owned by rich Americans – or their net worth. The idea, generally, is to combat growing economic inequality, creating a more level playing field among the wealthy and middle classes by adjusting the tax system.
According to Forbes, Schwab, who said he "came from really nothing," is worth more than $8 billion.
Meanwhile, Warren touted her wealth tax on Tuesday, saying it could fund free public college, universal child care and universal school meals. She has received flack after increasing the top rate on the proposal to 6 percent, from 3 percent, as a means to pay for her Medicare for All plan.
As a frontrunner in the 2020 Democratic Party, Warren’s policies have generated their fair share of criticism. Microsoft co-founder and billionaire Bill Gates recently questioned how open-minded the senator was to speaking with someone like him – who has a lot of money. He also suggested he did not support her wealth tax plan.
Over the weekend, entrepreneur Mark Cuban laid into Warren’s Medicare for All plan, accusing her of misleading the public about a timeline for implementation. He also alleged that a wealth tax would not be enough to cover the costs.
Hedge fund manager, self-made billionaire and philanthropist Leon Cooperman recently wrote a letter to Warren, accusing her of vilifying the rich.
During an interview with “60 Minutes” that aired this weekend, JPMorgan CEO Jamie Dimon said he does not like when people who worked hard to accomplish things are vilified. He also disputed the notion that just because he's wealthy he can't be a patriot.