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Discussions on the introduction of a wealth tax are spreading in New York, the United States, which is facing a fiscal crisis due to the Corona 19 crisis.



The New York Times (NYT) reports that the state's deficit is expected to reach $14.5 billion this year (approximately 17.2 trillion won), fueling wealth tax claims.



First of all, Democratic Governor Andrew Cuomo is negative about the new tax.



The logic is that to fill the astronomical fiscal deficit, federal support is needed rather than new taxes.



The problem is that as Democrats and Republicans confronted over the size of the additional budget for responding to Corona 19, the federal government's support itself became uncertain.



Senate Democrat Chuck Schumer recently told Governor Cuomo the congressional atmosphere that the White House and Republicans will not reflect budgetary support to the state in the additional draft.



As a result, the New York State legislature began discussing an alternative tax rate increase.



In particular, there has been widespread discussion to increase the 8.82% tax rate, which is imposed separately from the federal government's income tax, on high income earners over $1 million (about 1.19 billion won) to secure education budget.



In particular, a plan was proposed to create a new'wealth tax' by capturing 120 billionaires living in New York.



For billionaires, it's about taxing not only their income, but also their possessions.



No state in the United States imposes a wealth tax.



Even within the Democratic Party, only a few progressive candidates insisted on the creation of a wealth tax during the election process.



Democrats in the New York State legislature are expecting a new wealth tax to generate additional revenues of $5 billion annually.



Is that you have enough money to get New York State out of the financial crisis.



However, there is also a prospect that if a new wealth tax is established, billionaires will escape New York as a group instead of paying the tax.



In addition, it is difficult to argue that it is counter-constitutional to impose taxes on unrealized profits, so the discussion on the establishment of a wealth tax is expected to be accompanied by considerable pain. 



(Photo = EPA, Yonhap News)