We are all guilty of believing memes on social media. I know I've gotten swept away by a clever meme with the best intentions. But I'm learning to pause and verify before posting.
A recent meme that I received said, "Just one year of a 2% tax on billionaires would cover ending homelessness and hunger, providing tuition free public college, universal childcare and replacing all of the lead pipes in the U.S."
This sounds brilliant. But is it true? And even if it were true, I'm reluctant to increase taxes anyone. I believe we are all over taxed and the better play would be to for the government to be more efficient in the way they spend our money.
But back to the meme. It's not true.
1. Revenue from a 2% Tax on U.S. Billionaires:
As of November 2023, the combined wealth of America's 741 billionaires was approximately $5.2 trillion. Americans for Tax Fairness
A 2% tax on this amount would generate about $104 billion in a single year.
2. Estimated Costs of Proposed Programs:
Ending Homelessness: The Department of Housing and Urban Development (HUD) has estimated that ending homelessness in the U.S. would require an investment of approximately $20 billion. GlobalGiving
Ending Hunger: While precise figures vary, addressing food insecurity in the U.S. is estimated to cost around $25–30 billion annually.
Tuition-Free Public College: Providing tuition-free education at public colleges is projected to cost approximately $70–80 billion per year.
Universal Childcare: Implementing universal childcare is estimated to require about $40 billion annually.
Replacing Lead Pipes: The total cost to replace all lead pipes in the U.S. is estimated at $45–60 billion (a one-time expense). Brookings Institution
3. Comparing Revenue to Costs:
The combined annual cost for these programs (excluding the one-time expense of replacing lead pipes) is approximately $155–170 billion. In contrast, a 2% tax on billionaire wealth would generate about $104 billion annually.
Program | Estimated Annual Cost (Billions) |
Ending Homelessness | $20B |
Ending Hunger | $25–30B |
Tuition-Free College | $70–80B |
Universal Childcare | $40B |
Replacing Lead Pipes | $45–60B (One-Time Cost) |
Total (Annual Costs) | $155–170B |
Revenue from 2% Billionaire Tax | $104B |
The point of the meme is that the rich should be taxed more. I disagree. Even if billionairs could cover the tuition and housing of the country, I don't think it's the government's place to compel them to do so. I do believe that people should give of their on accord because it is the right thing to do.
If there is a social media meme that you think needs to go under our myth buster looking glass, email media@basspublicaffairs.com.
Comments