"Some critics think billionaires should not be allowed to put their money into foundations and receive tax deductions for this philanthropic giving — arguing that it deprives the US government of revenue for social services. Gates said that some gifts to foundations could be “more taxed.”
But Gates, whose foundation gives out about $5 billion a year, defended Big Philanthropy against its critics who argue that it is a second-class way to solve the country’s problems, after government.
“Should rich people pay more in taxes? The answer is yes. For whatever remainder of money that they have left over, I do think philanthropy is a good thing. That 2 percent of the economy plays a role that neither the private sector or the government is able to do,” Gates said. “If you create a company that is super valuable, at least some part of that you should be able to have — a little bit for consumption, and hopefully the balance to do philanthropic things.”