Charles Schwab Joins Chorus of Billionaires Opposing Wealth Tax

(Bloomberg) -- Charles Schwab, founder of the giant discount brokerage firm, is joining other finance billionaires in opposing the wealth tax backed by presidential candidate Elizabeth Warren.

“It’s sort of wrong-directed in many ways,” Schwab said Tuesday for a future episode of “The David Rubenstein Show: Peer-to-Peer Conversations” on Bloomberg TV. “I came from really nothing and had plenty of incentive to create what we’ve created.”

Schwab echoed comments by hedge fund billionaire Leon Cooperman in arguing that tax-the-rich proponents underplay the charitable contributions the wealthy already make to society through philanthropy.

Schwab, 82, who founded San Francisco-based Charles Schwab Corp. in the 1970s, said he and his wife have backed causes including the arts and Alzheimer’s research for decades.

In other comments:

• Schwab said his company’s recent move to make online trading in stocks, exchange-traded funds and options free will only cost about 4% of revenue, as it’s more focused on broader services such as financial advice.
• Schwab didn’t have any stock tips for Rubenstein, the co-founder of Carlyle Group LP. “I know Carlyle a lot and you’ve done a fantastic job. How about an index fund?”

To contact the reporter on this story: Josh Friedman in Los Angeles at jfriedman25@bloomberg.net

To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Alan Mirabella

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