Philanthropist and Microsoft founder Bill Gates said in an interview with The Verge that "extreme" tax reform proposals, like Rep. Alexandria Ocasio-Cortez's (D-N.Y.) proposed 70% marginal rate on income earned over $10 million, are "missing the picture" and a "misfocus" that will lead the wealthy to stash their cash overseas.
What he's saying: While he favors the idea of "more progressive" marginal rates, Gates said the wealthiest Americans have a "rounding error" of actual salary, and instead generate their wealth by selling stock and other assets: "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."
