During an interview with The Verge, successful businessman Bill Gates slammed Representative Alexandria Ocasio-Cortez’s tax policy.
The billionaire cautioned not to make tax policy a black and white issue, pointing to the complexity of different taxes.
“Certainly, the idea of government being more effective in terms of how it runs education or social programs, there’s a lot of opportunity for improvement there,” Gates said. “In terms of revenue collection, you wouldn’t want to just focus on the ordinary income rate, because people who are wealthy have a rounding error of ordinary income.”
These extreme tax rates could potentially cause more issues, as Gates said if lawmakers focus on marginal tax rates, “you’re missing the picture.” He was responding to high marginal income tax rates similar to those supported by Ocasio-Cortez.
“But once you get to the tippie tops, on your ten millionth, sometimes you see tax rates as high as 60 percent or 70 percent,” Ocasio-Cortez said in an interview with “60 Minutes.” “That doesn’t mean all $10 million are taxed at an extremely high rate. But it means that as you climb up this ladder, you should be contributing more.”
WATCH: New York Congresswoman Alexandria Ocasio-Cortez tells @60Minutes‘ @andersoncooper that Democrats should pursue radical change.@AOC supports medicare for all, wants to forgive student debt and believes marijuana should be legal. She’s also calling for a “green new deal.” pic.twitter.com/7VBLl0utdu
— CBS This Morning (@CBSThisMorning) January 4, 2019
Gates also pointed out that tax rates can be progressive without over-taxing citizens.
“We can be more progressive without really threatening income generation — what you have left to decide how to spread around,” Gates said.
The founder of Microsoft ended his criticism saying that some of the ideas that have been supported by progressives are “some crazy talk,” saying, “It will come back and bite you.”