United Airlines CEO says ‘I would pay’ near-100% inheritance taxes. Louisiana’s governor fires back: ‘Simply cut a check’

Kirby said wealth inequality had become “a danger to our society” that needed to be addressed sooner rather than later.

National wealth taxes on the mega-rich have been championed by progressive lawmakers and policymakers for nearly a decade. Such a tax on the assets of the wealthiest Americans faces its biggest test yet in California’s Proposition 40, which would implement a one-time, 5% tax on roughly 250 billionaires residing in the state, according to the California Budget and Policy Center. It has stirred strong resistance from business executives who argue they will simply pack up and move operations out of the state.

Wealth and inheritance taxes are under the spotlight

It’s rare for a chief executive to endorse a direct tax on wealth. Facebook co-founder Chris Hughes came out in favor of a moderate wealth tax in 2019. Other prominent business leaders such as billionaire investor Warren Buffett and Microsoft founder Bill Gates also endorsed an estate tax in years prior to prevent the dynastic buildup of wealth. The estate tax is levied on the value of an individual’s transfer of property upon death.

Kirby’s wealth tax comments stirred a backlash from some national Republican figures.

“How audacious from a guy that didn’t even build @united and makes $32 million a year. If he feels that strongly he could simply cut a check,” Louisiana Gov. Jeff Landry wrote on X. He linked to the US Bureau of Fiscal Service which oversees an account where public donations are accepted to shrink the national debt.

“Let’s see you step up and place your money where your mouth is!” Landry said.

There’s a distinction to be drawn between income and wealth. Income is what ordinary workers earn through wages or certain investments taxed by the federal government. Taxing a person’s wealth is a separate exercise, as the government would collect levies on assets like stocks, yachts, paintings, and more.