United Airlines CEO says US should have an inheritance tax 'close to 100%' and he'd pay it

In a recent interview with the New York Times, United Airlines CEO Scott Kirby shared his views on various topics, including the airline industry and wealth inequality. The interview, published on October 18, featured Kirby defending additional fees for specific seating options, such as aisle and window seats, while addressing the rising costs of air travel. "It's expensive to fly airplanes," Kirby, 59, stated, emphasizing that customers who pay more often receive enhanced services in return.

However, Kirby's remarks took a more populist turn when discussing the issue of wealth inequality, a topic he introduced while responding to inquiries about the declining trust in corporate leaders. He asserted, "Wealth inequality has become a danger to our society, and we need to address that." Kirby proposed the implementation of a national wealth tax, arguing that a state-level approach would be ineffective as wealthy individuals could relocate to avoid taxes. He further advocated for inheritance taxes that approach 100% at certain levels, stating, "I would pay them."

This is not the first instance of a prominent business figure calling for increased taxes on the wealthiest Americans. Notable individuals such as Warren Buffett, Bill Gates, and George Soros have long supported the idea of raising the tax burden on those with significant wealth. In a 2020 blog post, Gates reflected on the need to modernize the tax system, writing, "We've updated our tax system before to keep up with changing times, and we need to do it again, starting with raising taxes on people like me."

Similarly, Salesforce CEO Marc Benioff expressed in 2019 that raising taxes on high-income individuals could help generate the necessary funds to enhance education, healthcare, and combat climate change.

During Kirby's interview, the political landscape surrounding taxation was also referenced. At the time, President Joe Biden and Congressional Democrats were preparing to introduce legislation aimed at taxing unrealized gains for individuals with a net worth of at least $1 billion or an annual income exceeding $100 million for three consecutive years. However, these proposals ultimately did not materialize. Following the reelection of President Trump, Republicans in Congress passed the One Big Beautiful Bill Act, which included measures that established lower marginal tax rates for high-income earners and introduced other provisions that benefited wealthy Americans.

Regarding Kirby's stance on inheritance taxes, it is important to note that there is currently no federal tax imposed on individual beneficiaries of inherited assets. While a few states do have their own inheritance taxes, the federal estate tax exists with a substantial exemption—set at $15 million per individual—that results in very few estates being subject to it. In fact, only about 0.2% of estates are large enough to incur this tax, which only applies to the value exceeding the exemption threshold.

As discussions surrounding wealth inequality and tax reform continue to evolve, Kirby's comments highlight a growing sentiment among some corporate leaders advocating for a more equitable tax structure. His willingness to engage in this dialogue reflects a broader conversation about the responsibilities of wealth and the role of taxation in addressing societal challenges.

Molly Moorhead serves as the economics editor for Yahoo Finance.