I Asked ChatGPT What Would Happen If Billionaires Paid Taxes at the Same Rate as the Working Class
Written by
Laura Beck
Edited by
Molly Sullivan
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The tax system feels upside down sometimes. You work a regular job, and a big chunk of your paycheck goes to taxes. Meanwhile, you hear stories about billionaires paying almost nothing. So, I asked ChatGPT: What would actually happen if the ultra-wealthy paid the same tax rates as everyone else?
It turns out, at least according to ChatGPT, the current system isn’t just unfair. More than that, the country could be getting hundreds of billions of dollars every year if things changed.
The Reality of Who Actually Pays What
ChatGPT started with some shocking numbers about current tax rates. According to research from the National Bureau of Economic Research, the top 400 wealthiest Americans paid an effective tax rate of about 23.8% between 2018 and 2020.
Meanwhile, the average American paid around 30%, and high earners who mostly rely on wages paid closer to 45%. In some years, the richest 400 families actually paid less than the bottom 50% of households.
The most extreme example ChatGPT cited was from Oxfam, which found that in 2021, the wealthiest 400 families paid just 8.2% in federal individual income tax compared to a national average of 13%.
So, the people with the most money are paying the lowest rates. ChatGPT explained this happens because of capital gains preferences, tax loopholes and sophisticated tax planning that regular people can’t access.
What Equalizing Tax Rates Could Generate
When I asked ChatGPT to run the numbers on what equalizing tax rates could raise, the amounts were, quite frankly, staggering.
The most conservative estimate suggested that making billionaires pay taxes at the same rate as working-class Americans could generate $500 billion to $1 trillion per year in additional revenue.
Other scenarios were even more dramatic. If the top 1% paid just 10 percentage points more in taxes, that could raise $300 billion annually or $3 trillion over 10 years.
A more aggressive approach like raising billionaire tax rates by 25 percentage points could yield $800 billion or more per year. Yes, you read that number correctly.
ChatGPT also looked at specific policy proposals. Sen. Elizabeth Warren’s wealth tax could generate $113 billion annually, while Sen. Ron Wyden’s billionaire income tax might add $56 billion per year.
The most ambitious estimate came from Oxfam’s analysis of a comprehensive wealth tax on millionaires and billionaires, which could raise $664 billion annually.
What That Money Could Actually Buy
To put these numbers in perspective, ChatGPT explained what this kind of revenue could fund. Even the conservative estimate of $500 billion per year could pay for transformative programs.
That amount could cover free public college tuition, universal pre-K programs, massive infrastructure investments and a huge healthcare expansion. It could fund comprehensive child care support and food assistance programs.
The AI emphasized that we’re talking about enough money to fundamentally change how the government operates and what services it can provide.
The Investment and Business Impact
ChatGPT knew the common argument that higher taxes on billionaires might discourage investment or cause wealthy people to move money offshore.
But the AI also provided counterpoints. Countries with higher tax rates on the wealthy, like Scandinavian nations, still have thriving economies and high levels of innovation.
ChatGPT suggested that with global cooperation on tax policy, like international minimum tax agreements, it would be harder for billionaires to simply move their money elsewhere to avoid taxes.
Why This Isn’t Happening Already
ChatGPT said political resistance from powerful lobbying interests would be “intense.” The people who benefit from the current system have a lot of resources to fight changes.
There are also technical challenges. Wealth taxes face administrative hurdles and potential constitutional questions. Some economists argue that dramatic tax rate increases could reduce economic growth enough to actually decrease total tax revenue.
It’s also important to note that billionaires often have much of their money tied up in investments. When it comes to things like stocks, they don’t pay taxes on that growth until (or unless) they sell those stocks. So, it’s tricky to tax them before they’ve done something with the stock.
The Global Ripple Effects
ChatGPT pointed out that if major economies like the United States started taxing billionaires at working-class rates, it could encourage similar moves worldwide.
This might lead to reduced global tax avoidance, more coordinated international tax policies and pressure on tax havens to reform their systems.
The AI said this could create a positive cycle where it becomes harder for the ultra-wealthy to avoid paying their fair share anywhere in the world.
The Bottom Line on Numbers
ChatGPT’s analysis showed that equalizing tax rates isn’t just about fairness; it’s about massive amounts of money that could transform public services.
The range of additional revenue runs from hundreds of billions to over a trillion dollars annually, depending on the specific approach. Even the most conservative estimates represent transformative amounts of funding.
But the AI was clear that achieving these changes would require major legal and political reforms. The current system didn’t happen by accident and changing it would face major resistance.
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