BRIEF SYNOPSIS: America needs a law that makes Wealth Hoarding a crime and a Program that allows the ultrawealthy to unconditionally give away their excess wealth to other people of their choosing, not to government, not through taxation, in order avoid punishment for the crime.
We call it the Billionaire Program, with a Wealth Cap of $200 Million (with some assets exempt from the Cap calculation and with numerous other features of the Program, as will be discussed as you read on). If you want to dive right in to the all the details you can see the Billionaire Program Act (BPA), a simplified draft Supreme Court defense of the BPA, an Assessment of the Long Term Impact of the BPA and a Memo explaining the Billionaire Program to Ultras but it's probably best to keep reading before doing that.
The Billionaire Program does not involve ANY taxation or transfer of wealth to government or non-human entities. It does not involve philanthropy of any kind except in the philanthropic effect of gifts made to individual people. It is not socialist, communist, or anti-capitalist. The law designed to implement the Program - The Billionaire Program Act - does not violate any provision of the U.S. Constitution.
The Billionaire Program asks any US citizen with net worth above the Wealth Cap (an “Ultra”) to make the altruistic decision to voluntarily make gifts (of up to $15 Million each) of all their excess wealth above the Wealth Cap (with certain assets exempt as discussed below) to other individuals, meaning human persons.
Yes, Elon Musk, Bill Gates, and the other 800 or so multi billionaires, if they choose to enter the Program, will have to make a lot of gifts.
And yes, there are consequences for those Ultras who choose not to enter the Program - They can either choose to permanently leave the U.S. through voluntary self-exile or they can choose to stay in the U.S., keep all their wealth, and be indicted (and imprisoned) for the crime of wealth hoarding. Hopefully, many Ultras will make the patriotic, moral, and civic minded decision to enter the Program. Certainly some will not and they can just enjoy living a life where they never step foot in the U.S. again. The hope is that those who choose to self-exile and abandon the U.S. will be named, shamed, and they will feel a strong compulsion to do the right thing.
But the goal of the Billionaire Program is not to punish those entering it. To the contrary, those agreeing to enter the Billionaire Program and give away their excess wealth to other people should be celebrated and honored. The goal is merely to alleviate the high concentration of wealth and the power that those with it wield. It seeks to address levels of personal wealth that truly can be called “wealth hoarding" and the unhealthy amount of power and influence associated with such levels of wealth, the fact that those with excessive levels of wealth are only getting richer, and they are damaging our political, economic, environmental, and social systems. See eg. Limitarianism by Ingrid Robeyns.
We need this, we need it now, and we need to hope the idea of criminalizing wealth hoarding spreads to other countries, especially the UK and EU countries. Extreme wealth concentration is a cancer that needs a remedy NOW. If you're curious, keep reading please because there a number of features to the Billionaire Program designed to make it good social, political, and economic policy and make sure the law implementing the Program, the Billionaire Program Act, is not unconstitutional.
We call it the Billionaire Program, with a Wealth Cap of $200 Million (with some assets exempt from the Cap calculation and with numerous other features of the Program, as will be discussed as you read on). If you want to dive right in to the all the details you can see the Billionaire Program Act (BPA), a simplified draft Supreme Court defense of the BPA, an Assessment of the Long Term Impact of the BPA and a Memo explaining the Billionaire Program to Ultras but it's probably best to keep reading before doing that.
The Billionaire Program does not involve ANY taxation or transfer of wealth to government or non-human entities. It does not involve philanthropy of any kind except in the philanthropic effect of gifts made to individual people. It is not socialist, communist, or anti-capitalist. The law designed to implement the Program - The Billionaire Program Act - does not violate any provision of the U.S. Constitution.
The Billionaire Program asks any US citizen with net worth above the Wealth Cap (an “Ultra”) to make the altruistic decision to voluntarily make gifts (of up to $15 Million each) of all their excess wealth above the Wealth Cap (with certain assets exempt as discussed below) to other individuals, meaning human persons.
Yes, Elon Musk, Bill Gates, and the other 800 or so multi billionaires, if they choose to enter the Program, will have to make a lot of gifts.
And yes, there are consequences for those Ultras who choose not to enter the Program - They can either choose to permanently leave the U.S. through voluntary self-exile or they can choose to stay in the U.S., keep all their wealth, and be indicted (and imprisoned) for the crime of wealth hoarding. Hopefully, many Ultras will make the patriotic, moral, and civic minded decision to enter the Program. Certainly some will not and they can just enjoy living a life where they never step foot in the U.S. again. The hope is that those who choose to self-exile and abandon the U.S. will be named, shamed, and they will feel a strong compulsion to do the right thing.
But the goal of the Billionaire Program is not to punish those entering it. To the contrary, those agreeing to enter the Billionaire Program and give away their excess wealth to other people should be celebrated and honored. The goal is merely to alleviate the high concentration of wealth and the power that those with it wield. It seeks to address levels of personal wealth that truly can be called “wealth hoarding" and the unhealthy amount of power and influence associated with such levels of wealth, the fact that those with excessive levels of wealth are only getting richer, and they are damaging our political, economic, environmental, and social systems. See eg. Limitarianism by Ingrid Robeyns.
We need this, we need it now, and we need to hope the idea of criminalizing wealth hoarding spreads to other countries, especially the UK and EU countries. Extreme wealth concentration is a cancer that needs a remedy NOW. If you're curious, keep reading please because there a number of features to the Billionaire Program designed to make it good social, political, and economic policy and make sure the law implementing the Program, the Billionaire Program Act, is not unconstitutional.
MORE HIGH LEVEL DETAILS
Extreme wealth might not be top of mind for many people, but the case against it is persuasively made in the recent book by Ingrid Robeyns, Limitarianism. Ms. Robeyns is a Dutch economist and philosopher.
Suffice it to say that, in writing this, we have been converted to a belief that extreme wealth in the control of a very small number of people is very bad for America and the world in general. If you have doubts about that, read Ms. Robeyns book, which makes the case in a thorough and compelling way. In America, wealth is not just concentrated, it is RIDICULOUSLY concentrated.
However, arguably Ms. Robeyns overshoots the mark in terms of the radical nature of the proposals in her book. The Billionaire Program is offered with the assumption that the evil of extreme wealth concentration is an accepted belief and that something practical and achievable needs to be done about it. So we are seeking a solution that could actually gain the approval of a vast majority of Americans and perhaps citizens of other democracies with high wealth concentration like the UK and Germany.
Anecdotally, we have yet to find a person in America that’s not extremely wealthy that disagrees with the simple premise that extreme wealth in the control of a very small number of people is something that must be dealt with for the health of the nation and our democracy.
The Wealth Cap
So what should be done about extreme wealth concentration?
To answer this question, it’s important to define extreme wealth. As lawyers, financial advisors, economists, political scientists and CPAs to us that seems to be a common sense first step. So it’s all about individual net worth: the total value of a person’s assets minus the total value of their liabilities. Defining extreme wealth means setting a level on the dollar amount of an individual’s net worth that is, by any reasonable standard, greater than they, or anyone in their immediate family, could ever possibly need for several generations in order to live a very comfortable life.
For that number, the proposed maximum individual net worth is $200 million USD (The “Wealth Cap.”) (with certain assets being exempt from the calculation of the cap as discussed below).
Why $200 Million?
At a level of $200 million, assuming that a substantial portion of that would be liquid assets, it’s almost impossible for the level of an individual's wealth not to grow. It is a shitload of wealth that no person could ever argue is not enough to live a life of extreme privilege and comfort. Even if only $100 million of net worth is in liquid assets, if that is invested in the most conservative investments, the assets would generate approximately $3 million in income annually. That is assuming a very modest return of 3% annually. Historically net after-tax returns on investments have been higher significantly.
It's very difficult for an individual to spend $3 million a year on consumable goods and services and not on acquisition of additional assets. Generally acquisition of additional assets has a neutral effect on net worth. It may have a negative effect as the value of the assets decreases, but it also may have a positive effect as the value of assets increase.
Individuals come not only with assets, but also with liabilities. The assumption is that the Wealth Cap amount is net of any liabilities and, as discussed below in connection with the proposal, individuals would not take on additional debt (with certain exceptions discussed below) subsequent to any adjustment in their net worth from levels above the Wealth Cap to the Wealth Cap amount.
The Billionaire Program
This proposal - which, for ease of reference, we will call the Billionaire Program - would ask any US citizen with net worth above the Wealth Cap (an “Ultra”) to make the altruistic decision to voluntarily make gifts of all their excess wealth above the Wealth Cap (with certain assets exempt as discussed below) to other individuals, meaning human persons. The consequences for an Ultra refusing to enter the Program are discussed below.
Additionally, as a perk associated with entering, once a person is in the Billionaire Program, their wealth subsequently can increase up to $300 Million (the “New Wealth Cap”), but no further. Subsequent gifts may need to be made and persons in the Billionaire Program would be audited to ensure wealth is not accumulated in excess of the $300 Million New Wealth Cap for those that have entered the Billionaire Program. There are other perks for those entering the Program, explained as you read further, specifically the Homestead Exemption, the ONE Entity Exemption, Estate and Gift Tax Exemptions, and Downside Protection guaranteeing those that enter the Program that their net worth never drops below $100 Million. The Billionaire Program is not meant to be punitive.
The Billionaire Program does not involve ANY taxation or transfer of wealth to government or non-human entities. It does not involve philanthropy of any kind except in the philanthropic effect of gifts made to individual people.
The goal of the Billionaire Program is not to punish those entering it. To the contrary, those agreeing to enter the Billionaire Program should be celebrated and honored. The goal is merely to alleviate the high concentration of wealth and the power that those with it wield. It seeks to address levels of personal wealth that truly can be called “wealth hoarding" and the unhealthy amount of power and influence associated with such levels of wealth.
The Billionaire Program does not involve forcing anyone to surrender wealth to the government through taxation or otherwise. It is not in any way socialist or communist or critical of capitalism. It is merely a recognition that extreme wealth concentration is a condition that is unhealthy for both those that are extremely wealthy and those that are not. It is a remedy that is intended to be narrowly crafted so as to achieve its goal without being punitive. Long term the goal is to have very few people in the Billionaire Program, maybe even eventually none.
If you have questions about how the Billionaire Program would actually work, how it would be implemented, how to keep it from being unconstitutional, and the consequences for those that refuse to enter the Program, please reserve judgment and keep reading.
Extreme wealth might not be top of mind for many people, but the case against it is persuasively made in the recent book by Ingrid Robeyns, Limitarianism. Ms. Robeyns is a Dutch economist and philosopher.
Suffice it to say that, in writing this, we have been converted to a belief that extreme wealth in the control of a very small number of people is very bad for America and the world in general. If you have doubts about that, read Ms. Robeyns book, which makes the case in a thorough and compelling way. In America, wealth is not just concentrated, it is RIDICULOUSLY concentrated.
However, arguably Ms. Robeyns overshoots the mark in terms of the radical nature of the proposals in her book. The Billionaire Program is offered with the assumption that the evil of extreme wealth concentration is an accepted belief and that something practical and achievable needs to be done about it. So we are seeking a solution that could actually gain the approval of a vast majority of Americans and perhaps citizens of other democracies with high wealth concentration like the UK and Germany.
Anecdotally, we have yet to find a person in America that’s not extremely wealthy that disagrees with the simple premise that extreme wealth in the control of a very small number of people is something that must be dealt with for the health of the nation and our democracy.
The Wealth Cap
So what should be done about extreme wealth concentration?
To answer this question, it’s important to define extreme wealth. As lawyers, financial advisors, economists, political scientists and CPAs to us that seems to be a common sense first step. So it’s all about individual net worth: the total value of a person’s assets minus the total value of their liabilities. Defining extreme wealth means setting a level on the dollar amount of an individual’s net worth that is, by any reasonable standard, greater than they, or anyone in their immediate family, could ever possibly need for several generations in order to live a very comfortable life.
For that number, the proposed maximum individual net worth is $200 million USD (The “Wealth Cap.”) (with certain assets being exempt from the calculation of the cap as discussed below).
Why $200 Million?
At a level of $200 million, assuming that a substantial portion of that would be liquid assets, it’s almost impossible for the level of an individual's wealth not to grow. It is a shitload of wealth that no person could ever argue is not enough to live a life of extreme privilege and comfort. Even if only $100 million of net worth is in liquid assets, if that is invested in the most conservative investments, the assets would generate approximately $3 million in income annually. That is assuming a very modest return of 3% annually. Historically net after-tax returns on investments have been higher significantly.
It's very difficult for an individual to spend $3 million a year on consumable goods and services and not on acquisition of additional assets. Generally acquisition of additional assets has a neutral effect on net worth. It may have a negative effect as the value of the assets decreases, but it also may have a positive effect as the value of assets increase.
Individuals come not only with assets, but also with liabilities. The assumption is that the Wealth Cap amount is net of any liabilities and, as discussed below in connection with the proposal, individuals would not take on additional debt (with certain exceptions discussed below) subsequent to any adjustment in their net worth from levels above the Wealth Cap to the Wealth Cap amount.
The Billionaire Program
This proposal - which, for ease of reference, we will call the Billionaire Program - would ask any US citizen with net worth above the Wealth Cap (an “Ultra”) to make the altruistic decision to voluntarily make gifts of all their excess wealth above the Wealth Cap (with certain assets exempt as discussed below) to other individuals, meaning human persons. The consequences for an Ultra refusing to enter the Program are discussed below.
Additionally, as a perk associated with entering, once a person is in the Billionaire Program, their wealth subsequently can increase up to $300 Million (the “New Wealth Cap”), but no further. Subsequent gifts may need to be made and persons in the Billionaire Program would be audited to ensure wealth is not accumulated in excess of the $300 Million New Wealth Cap for those that have entered the Billionaire Program. There are other perks for those entering the Program, explained as you read further, specifically the Homestead Exemption, the ONE Entity Exemption, Estate and Gift Tax Exemptions, and Downside Protection guaranteeing those that enter the Program that their net worth never drops below $100 Million. The Billionaire Program is not meant to be punitive.
The Billionaire Program does not involve ANY taxation or transfer of wealth to government or non-human entities. It does not involve philanthropy of any kind except in the philanthropic effect of gifts made to individual people.
The goal of the Billionaire Program is not to punish those entering it. To the contrary, those agreeing to enter the Billionaire Program should be celebrated and honored. The goal is merely to alleviate the high concentration of wealth and the power that those with it wield. It seeks to address levels of personal wealth that truly can be called “wealth hoarding" and the unhealthy amount of power and influence associated with such levels of wealth.
The Billionaire Program does not involve forcing anyone to surrender wealth to the government through taxation or otherwise. It is not in any way socialist or communist or critical of capitalism. It is merely a recognition that extreme wealth concentration is a condition that is unhealthy for both those that are extremely wealthy and those that are not. It is a remedy that is intended to be narrowly crafted so as to achieve its goal without being punitive. Long term the goal is to have very few people in the Billionaire Program, maybe even eventually none.
If you have questions about how the Billionaire Program would actually work, how it would be implemented, how to keep it from being unconstitutional, and the consequences for those that refuse to enter the Program, please reserve judgment and keep reading.
EVEN MORE DETAILS
Before we get to everything that is involved with a full exposition of the Billionaire Program, including the Billionaire Program Act (BPA), a simplified draft Supreme Court defense of the BPA, an Assessment of the Long Term Impact of the BPA and a Memo explaining the Billionaire Program to Ultras - Here are more of the important details for you.
The Billionaire Program and How It Works: Detail and Rationale
The Billionaire Program involves gifts of assets exclusively to individuals (the Donees). Gifts must be immediately effective, unconditional, and irrevocable - no strings attached and no opportunity for the Ultra to exercise any influence or control over Donees after the gifts are made.
What Donees?
A person in the Billionaire Program may give gifts to anyone they desire. No restriction on who may be given wealth gifts except that every Donee must be over the age of 18. Gifts to anyone in the world are allowed.
How big can the gifts be?
None greater than $15 Million on a lifetime basis to any single individual.
Why?
$15 Million is enough for anyone, and their family, to live a very good life. They can live comfortably off just the INCOME from $15 Million. The Billionaire Program merely seeks to alleviate extreme wealth concentration. Spreading wealth out among a lot more people is the sole aim, thus reducing the power of a few individuals to effectively act as oligarchs in the US political and economic systems. A person with a net worth of $15 Million is very comfortable, but is not so wealthy as to have great political and economic power. $15 Million is also the (newly proposed) lifetime exemption for US Gift Tax purposes and an amount that will not lead to creation of more members of the Billionaire Program. $15 Million is an amount that will give the Donee a life of comfort for themselves and their family. It should also be noted that gifts of assets worth greater than $15 million can be given if they are specifically encumbered with nonrecourse debt (meaning debt where the borrower has no personal liability and the lender can only look to sale of the encumbered asset in order to satisfy the debt). So long as the value of the asset given, net of any liabilities directly secured by the asset on a nonrecourse basis, is not greater than $15 million.
How fast does gifting have to happen?
10% of excess wealth above the Wealth Cap would need to be gifted annually with a minimum gifting of $150 Million until adjustment to the Wealth Cap is achieved. So the Billionaire Program would phase in over a 10 year period for some Ultras with the most wealth, quicker for those with lower levels of wealth above the Wealth Cap. Implementation of the Billionaire Program would be a radical change and so best to have it occur over a period of time and not immediately.
Gifts of interests in closely held and publicly traded companies would have a sale restriction so that a Donee could not sell all of the interest immediately - Max sale of 20% of holding per year. Gifts of interest in closely held private companies would take the form of a transfer of the interest in the entity. A number of private entities would therefore have to become public entities because they would be widely held by unaccredited investors. Arguably widely held ownership of all companies valued over $100 million is a better situation for society than concentration of ownership in a few individuals. These protections regarding public and closely held entities are meant to prevent the entity valuations from drastically decreasing because shares are dumped by Donees after a dominant shareholder owner enters the Billionaire Program.
Perks for Those Entering the Program
What perks are given to those who cooperate and enter the Billionaire Program?
Downside protection - Once an individual enters the Billionaire Program they have a lifetime guarantee that their net worth can never drop below $100 Million (the Floor). Gambling losses and subsequent gifts to individuals or entities are not protected and reduce the downside protection Floor amount. In addition, any amounts contributed to political candidates or political action entities are deducted from the downside protection Floor amount. Also note that once a person enters the Billionaire Program, they may not incur additional personal liability in the form of debts related to loans or guarantees of loans. Any losses related to such debts are not protected and reduce the Floor amount. Obviously revolving debt that is paid off on a regular basis would be ok. ie credit card debt. Also, of course, nonrecourse purchase money debt solely secured by an asset purchased is allowed.
$100 Million in New Wealth Allowed - Once a person is in the Billionaire Program, their wealth subsequently can increase up to $300 million (the “New Wealth Cap”), but no further. Subsequent gifts may need to be made and persons in the Billionaire Program would be audited to ensure wealth is not accumulated in excess of the $300 Million New Wealth Cap for those that have entered the Billionaire Program.
Estate and Gift Tax Exemption - Upon the death of a person in the Billionaire Program, their entire estate is exempt from US Estate Tax and may be bequeathed to any person or entity in any amount. Gift Taxes also will not apply to gifts made by those in the Program.
Homestead Exemption - A single piece of land (or a residential property such as a condo) on/in which a person resides more than six months a year would be exempt and not included in the calculation of net worth toward the Wealth Cap.
ONE Entity Exemption - The ONE Entity Exemption: A person in the Billionaire Program could retain an additional interest valued at up to $200 Million in a single entity (the ONE Entity) provided that the entity is not a holding company that just holds interests in other companies. The ONE Entity must be an operating company that has more than 80% of its revenue from the sale of products and/or services. $200 Million in value of the person’s interest in the ONE Entity would not be counted in the calculation toward the Wealth Cap. The ONE Entity also could have wholly owned subsidiary entities so long as those entities also were operating companies.
So Bill Gates could retain $200 Million of his shares in Microsoft, but not in the myriad of other entities in which he might hold an interest. A large landowner could retain their full interest in a single piece of land provided it was income producing.
What are the tax consequences of the Billionaire Program?
The Billionaire Program does not involve a tax, but it would implicate other existing taxes like gift and state taxes.
On entering the Billionaire Program, any gifts made of assets would be exempt from US Gift Tax.
Estate Tax also would not apply to any person in the Billionaire Program upon their death.
How is net worth determined? And how often does it have to be reassessed?
A federal agency would be created - the FWOA Federal Wealth Oversight Agency.
Individuals with excess wealth would be identified and their assets and liabilities audited. The audit would have to occur annually as long as the person remained in the Billionaire Program.
Funding: The entire administration of the Billionaire Program, evaluation of assets, enforcement, oversight, would have to be funded by Congress. The work of the FWOA however would only apply to approximately 50,000 individuals in the U.S. - who, it should be noted, control more wealth than 90% of the U.S. population, combined. In order to thoroughly investigate assets and liabilities, it may be necessary to declare that with regard to issues involving the disclosure of assets and liabilities the Attorney-Client privilege and any extension of privilege to other experts, accountants, financial advisors, etc. would not apply or, upon opting to enter the Billionaire Program, a person would be required to give a limited waiver of the privilege as needed to fully investigate assets and liabilities.
Consequences for Those Refusing the Enter the Billionaire Program
What are the consequences for an individual that refuses to enter the Billionaire Program?
An individual with net worth above the Wealth Cap who refuses to enter the Billionaire Program has two options:
Before we get to everything that is involved with a full exposition of the Billionaire Program, including the Billionaire Program Act (BPA), a simplified draft Supreme Court defense of the BPA, an Assessment of the Long Term Impact of the BPA and a Memo explaining the Billionaire Program to Ultras - Here are more of the important details for you.
The Billionaire Program and How It Works: Detail and Rationale
The Billionaire Program involves gifts of assets exclusively to individuals (the Donees). Gifts must be immediately effective, unconditional, and irrevocable - no strings attached and no opportunity for the Ultra to exercise any influence or control over Donees after the gifts are made.
What Donees?
A person in the Billionaire Program may give gifts to anyone they desire. No restriction on who may be given wealth gifts except that every Donee must be over the age of 18. Gifts to anyone in the world are allowed.
How big can the gifts be?
None greater than $15 Million on a lifetime basis to any single individual.
Why?
$15 Million is enough for anyone, and their family, to live a very good life. They can live comfortably off just the INCOME from $15 Million. The Billionaire Program merely seeks to alleviate extreme wealth concentration. Spreading wealth out among a lot more people is the sole aim, thus reducing the power of a few individuals to effectively act as oligarchs in the US political and economic systems. A person with a net worth of $15 Million is very comfortable, but is not so wealthy as to have great political and economic power. $15 Million is also the (newly proposed) lifetime exemption for US Gift Tax purposes and an amount that will not lead to creation of more members of the Billionaire Program. $15 Million is an amount that will give the Donee a life of comfort for themselves and their family. It should also be noted that gifts of assets worth greater than $15 million can be given if they are specifically encumbered with nonrecourse debt (meaning debt where the borrower has no personal liability and the lender can only look to sale of the encumbered asset in order to satisfy the debt). So long as the value of the asset given, net of any liabilities directly secured by the asset on a nonrecourse basis, is not greater than $15 million.
How fast does gifting have to happen?
10% of excess wealth above the Wealth Cap would need to be gifted annually with a minimum gifting of $150 Million until adjustment to the Wealth Cap is achieved. So the Billionaire Program would phase in over a 10 year period for some Ultras with the most wealth, quicker for those with lower levels of wealth above the Wealth Cap. Implementation of the Billionaire Program would be a radical change and so best to have it occur over a period of time and not immediately.
Gifts of interests in closely held and publicly traded companies would have a sale restriction so that a Donee could not sell all of the interest immediately - Max sale of 20% of holding per year. Gifts of interest in closely held private companies would take the form of a transfer of the interest in the entity. A number of private entities would therefore have to become public entities because they would be widely held by unaccredited investors. Arguably widely held ownership of all companies valued over $100 million is a better situation for society than concentration of ownership in a few individuals. These protections regarding public and closely held entities are meant to prevent the entity valuations from drastically decreasing because shares are dumped by Donees after a dominant shareholder owner enters the Billionaire Program.
Perks for Those Entering the Program
What perks are given to those who cooperate and enter the Billionaire Program?
Downside protection - Once an individual enters the Billionaire Program they have a lifetime guarantee that their net worth can never drop below $100 Million (the Floor). Gambling losses and subsequent gifts to individuals or entities are not protected and reduce the downside protection Floor amount. In addition, any amounts contributed to political candidates or political action entities are deducted from the downside protection Floor amount. Also note that once a person enters the Billionaire Program, they may not incur additional personal liability in the form of debts related to loans or guarantees of loans. Any losses related to such debts are not protected and reduce the Floor amount. Obviously revolving debt that is paid off on a regular basis would be ok. ie credit card debt. Also, of course, nonrecourse purchase money debt solely secured by an asset purchased is allowed.
$100 Million in New Wealth Allowed - Once a person is in the Billionaire Program, their wealth subsequently can increase up to $300 million (the “New Wealth Cap”), but no further. Subsequent gifts may need to be made and persons in the Billionaire Program would be audited to ensure wealth is not accumulated in excess of the $300 Million New Wealth Cap for those that have entered the Billionaire Program.
Estate and Gift Tax Exemption - Upon the death of a person in the Billionaire Program, their entire estate is exempt from US Estate Tax and may be bequeathed to any person or entity in any amount. Gift Taxes also will not apply to gifts made by those in the Program.
Homestead Exemption - A single piece of land (or a residential property such as a condo) on/in which a person resides more than six months a year would be exempt and not included in the calculation of net worth toward the Wealth Cap.
ONE Entity Exemption - The ONE Entity Exemption: A person in the Billionaire Program could retain an additional interest valued at up to $200 Million in a single entity (the ONE Entity) provided that the entity is not a holding company that just holds interests in other companies. The ONE Entity must be an operating company that has more than 80% of its revenue from the sale of products and/or services. $200 Million in value of the person’s interest in the ONE Entity would not be counted in the calculation toward the Wealth Cap. The ONE Entity also could have wholly owned subsidiary entities so long as those entities also were operating companies.
So Bill Gates could retain $200 Million of his shares in Microsoft, but not in the myriad of other entities in which he might hold an interest. A large landowner could retain their full interest in a single piece of land provided it was income producing.
What are the tax consequences of the Billionaire Program?
The Billionaire Program does not involve a tax, but it would implicate other existing taxes like gift and state taxes.
On entering the Billionaire Program, any gifts made of assets would be exempt from US Gift Tax.
Estate Tax also would not apply to any person in the Billionaire Program upon their death.
How is net worth determined? And how often does it have to be reassessed?
A federal agency would be created - the FWOA Federal Wealth Oversight Agency.
Individuals with excess wealth would be identified and their assets and liabilities audited. The audit would have to occur annually as long as the person remained in the Billionaire Program.
Funding: The entire administration of the Billionaire Program, evaluation of assets, enforcement, oversight, would have to be funded by Congress. The work of the FWOA however would only apply to approximately 50,000 individuals in the U.S. - who, it should be noted, control more wealth than 90% of the U.S. population, combined. In order to thoroughly investigate assets and liabilities, it may be necessary to declare that with regard to issues involving the disclosure of assets and liabilities the Attorney-Client privilege and any extension of privilege to other experts, accountants, financial advisors, etc. would not apply or, upon opting to enter the Billionaire Program, a person would be required to give a limited waiver of the privilege as needed to fully investigate assets and liabilities.
Consequences for Those Refusing the Enter the Billionaire Program
What are the consequences for an individual that refuses to enter the Billionaire Program?
An individual with net worth above the Wealth Cap who refuses to enter the Billionaire Program has two options:
- voluntarily leave the United States and never re-enter the United States for any reason. Essentially the person chooses to self-exile (although they are free to go wherever they wish to go and they retain all their wealth, their citizenship and rights to vote and make political contributions) They also can keep a US passport, but it won’t let them back into the United States. If they re-enter the US for any reason, including travel to another destination outside the US, they will be arrested for a wealth hoarding offense.
OR - Be indicted as a wealth hoarder (a criminal offense) and face prison for 40 years. The convicted person could, if they choose prison, retain all their wealth, their citizenship and rights to vote and make political contributions.
Note: The Billionaire Program Act would also provide that, although a Presidential Pardon could apply to a Wealth Hoarding offense, each day that an Ultra continues to possess wealth in excess of the Wealth Cap would be considered a new offense. So a POTUS particularly sympathetic to an Ultra could only shield them from prosecution while that President was actually in office and that would require essentially daily pardons since pardons can not apply to future crimes.