Tax the rich - and the ex-wife

NEW York property magnate Donald Trump has always been too crass and brash even by the standards of America's nouveau riche. Last week, the thick-skinned tycoon did little to endear himself any further to the Palm Beach set during his fledgling presidential campaign with his less-than-novel policy idea: tax the rich.

Mr Trump proposed a one-off 14.25 per cent federal wealth tax on any individual or trust worth more than US$10 million (HK$77.6 million) to wipe out the national debt.

The move, he claimed, would pull in an instant US$5.7 trillion and save US$200 million in interest payments - cash which he would use to cut taxes and boost social security for everyone else. He would, however, ease the pain of the mega-rich by reviewing the 55 per cent inheritance tax on the top bracket.

'The economy would boom like never before,' he said.

America's two richest men - Microsoft chairman Bill Gates and investor Warren Buffett - would be forced to fork out an estimated US$16.5 billion between them from fortunes of US$85 billion and US$31 billion, respectively. Mr Trump would commit himself to a loss of US$750 million under the plan.

Commentators have appeared surprised by the creativity he has brought to the Reform Party since declaring his stand four weeks ago, but some warn it will do the Cayman Islands more good than the United States as the rich send their capital packing.