United CEO Kirby Backs National Service After Wealth Tax Remark

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United Airlines CEO Scott Kirby has put a second proposal on the table: national service for everyone. He raised it after drawing criticism last week for saying the U.S. should have a national wealth tax.

In a New York Times Q&A last Sunday, Kirby was asked whether he is concerned that the public trusts CEOs less. He replied that wealth inequality is a danger to society and should be addressed. "We should have a national wealth tax—it won't work by state because people will just move," he said. "And I think we should have inheritance taxes that get close to 100% at some level. I would pay them."

The remarks came as California voters prepare to decide next month on a billionaire tax, which some economists have said could "kickstart a movement" that spreads to other states and countries.

Conservative pundits and politicians quickly criticized Kirby, and some suggested he should give away his salary to United employees. He did not walk back the statement. On Wednesday he told Bloomberg TV that he is not a policy advocate, has no plans to run for office and was simply asked for a "non-consensus opinion."

Kirby said it comes down to basic fairness. Some people who earn passive income can avoid income taxes, and in his view a fairer system would tax the growth of wealth in some way while lowering income taxes. Despite the blowback, he said the emails he has received about a wealth tax have split 50/50 for and against.

A second idea

The Times had asked for his most contrarian take, and Kirby answered that AI is not an investment bubble. Asked whether he had another non-consensus opinion, he moved to national service.

"I'll tell you another thing that I think would be a good idea," he said. "Again, I'm not a policy advocate. I'm not running for office, but I think national service for everyone would be a good idea. I served, not to the military, but I think if everyone had to spend a couple of years as a teacher, as a firefighter, serving in the military—I think that'd be good for our country."

Kirby attended the Air Force Academy and earned degrees in computer science and operations research. An inner ear issue kept him from becoming a fighter pilot, because it prevented him from flying level with his eyes closed. He worked at the Pentagon as a budget analyst and earned a master's degree in operations research before starting a 30-year career in the airline industry.

Kirby still credits the Academy with instilling values he applies today, above all a "no excuses" attitude. Last month he told the Air Force Academy Association & Foundation: "I have an absolute requirement that everyone on my executive team buys into 'no excuses.' I think it is the most important lesson learned as a cadet. It is perhaps the most important life lesson you can learn."

Other chief executives also have records of national service. A handful of Fortune 500 bosses have served in the military, mostly in the Army, including Casey's General Stores CEO Darren Rebelez, Emcor CEO Anthony Guzzi, Xcel Energy CEO Bob Frenzel, Sempra Energy CEO Jeffrey Martin and Advance Auto Parts CEO Shane O'Kelly.

In the Bloomberg interview Kirby said: "I love this country. I want it to be great for the next 250 years. I want it to be great for my kids." He added that the country needs to stop punting some problems to the next generation, among them deficits and what to do about Social Security. He has seven kids, he said, and cares what the country will be like for them.

Source: Fortune