Bill Gates, the billionaire co-founder of Microsoft, has been vocal about his belief that the wealthy should pay higher taxes, but not so high that it stifles innovation or economic growth.
During a recent appearance on the “On With Kara Swisher” podcast, Gates discussed his views on wealth distribution and the tax system, calling for a balanced approach that increases taxes on the rich without destroying the mechanisms that create wealth.
“I would set tax rates quite a bit higher for rich people,” Gates stated, expressing his belief that wealthier individuals should contribute more to society. He went so far as to suggest a tax rate that could reduce his own net worth by 62%.
However, Gates was quick to caution against extreme measures, like the 99% tax proposed by Sen. Bernie Sanders in his new Netflix show “What’s Next? The Future with Bill Gates.” Gates believes such aggressive taxation would harm innovation and wealth creation.
“You definitely do get to the point where … you’re killing the goose that lays the golden egg,” Gates said, emphasizing the importance of preserving the systems that generate wealth in the first place. As an example, he pointed to North Korea, a country with “unbelievable equality” but at the expense of economic opportunity and prosperity.
Gates, currently ranked as the world’s sixth-richest person with a net worth of $163 billion, also highlighted the unique role America plays in fostering innovation and building valuable companies.
He described the U.S. as the “envy of the world” when it comes to creating environments where businesses can thrive and expand. According to Gates, a growing economy is essential if the government is to raise the social safety net to levels sought by progressives like Sanders.
Beyond income tax, Gates is a strong advocate for the estate tax, which he believes is crucial to prevent the establishment of dynastic wealth—wealth that is inherited rather than earned. He argued that eliminating the estate tax would allow fortunes to pass from generation to generation without contributing back to society.
Gates also touched on the role of philanthropy, suggesting that after paying their fair share in taxes, the ultra-wealthy should commit the remainder of their wealth to charitable causes. He sees a combination of government taxation and private philanthropy as the best approach to addressing societal inequalities.
“Once you pay those taxes, whatever’s left over, you should engage in philanthropy,” Gates advised, reflecting his long-standing commitment to giving back through the Bill & Melinda Gates Foundation.
Gates has previously stated that if he had designed the U.S. tax system himself, he would have personally paid “tens of billions” more in taxes. His latest comments suggest that, while he is willing to see his wealth significantly reduced, he wants to ensure that the system remains conducive to entrepreneurship and innovation.
In essence, Gates supports a middle ground—where the rich pay more, but not so much that the drive to build the next Microsoft is lost. For him, it’s about finding a balance between wealth redistribution and maintaining a thriving, innovative economy.
