PICKENS, S.C. - Donald Trump wants to soak the rich, including himself.
Seeking attention and credibility for his potential presidential campaign, the billionaire real estate tycoon proposed a 14.25 percent tax yesterday on the net worth of wealthy Americans. He said the one-time tax package would:
Raise $5.7 trillion to erase the nation's debt and save $200 billion in annual interest payments. The $5.7 trillion is about two thirds of the nation's gross domestic product, a figure sure to raise alarm bells on Wall Street.
Use the savings to save Social Security and slash taxes for the middle class.
Increase his personal tax bill by at least $725 million.
''It's a big hit for me, but I think it's worth it,'' the potential Reform Party candidate said in a telephone interview from his New York offices.
People and trusts valued at more than $10 million would be subject to the new tax. Trump, a longshot for the presidency, estimates his net worth at $5 billion.
The original plan called for collection in a single year but, in a last-minute change, Trump said he would allow more time for people having trouble liquifying their assets. ''Let's say 10 years,'' he said.
Financial analysts said such a dramatic tax increase could be an economic disaster, even if Trump were somehow able to surmount a slew of technical and political hurdles that would make it virtually impossible to impose.
''If you think this is a bubble in the stock market, this is a sure way to prick it,'' said Mark Zandi, chief economist of RFA Dismal Sciences, an economic consulting company in West Chester, Pa.
''Even talking about it would risk capital flight out of the country,'' said Andrew Hodge, senior vice president of the WEFA group in Eddystone, Pa. ''It is pretty confiscatory in terms of property rights.''
Trump dismissed the doom-and-gloom scenarios. ''It would not be a shock to the system,'' he said, predicting a 35 percent boost in economic activity after he eliminates the debt, cuts income taxes and erases the inheritance tax.
Trump hoped to build political stature with his first major policy proposal of the campaign.
