Man worth $1.9 billion shares why he doesn't think 'taxing the rich' would work

An entrepreneur worth more than a billion dollars has explained why he believes 'taxing the rich' isn't the answer.

The idea of making the wealthiest people pay more tax has long been a hot topic of debate, with some arguing it is necessary to tackle inequality and fund public services.

But one billionaire entrepreneur has challenged that argument, explaining why he believes increasing taxes on the rich isn't the solution many people think it is.

John Caudwell, 74, claimed he is 'one of the most moralistic people that there are', having pledged to leave 70 percent of his wealth to charity when he dies.

Speaking in an episode of LADbible's Honesty Box about his children in an exclusive interview, Caudwell said: "I always told them if I made money, it would never come to them. It would go to the cats' homes. Well, it's not going to the cats' homes, but it is going for charitable purposes."

He earned his billions after founding a mobile phone wholesale business in 1987, but life wasn't always so sweet.

The billionaire noted that his family were very poor. (LADbible Stories)

"I inherited zero, my family were very poor. They struggled for survival really."

Despite his humble beginnings, his stance on taxing the wealthy may come as a surprise.

"It's a little bit complex and I do answer this in a way that brings a smile to people's face or a look of horror," he admitted.

"The first thing is that if, I were this theoretical global dictator, yes, there'd be a wealth tax on all the rich. Maybe 2 or 3 percent, the rich could still get richer, but 2 or 3 percent on all the global rich would transform the whole world.

"But I'm not a global dictator, and probably many people would say thank goodness for that."

He plans to leave 70 percent of his wealth to charity. (LADbible Stories)

However, the entrepreneur noted that taxing the rich would mean the 'poor end up poorer as a consequence'.

"You know, the simple fact is," he explained, "if we tax the rich, we drive them offshore and we actually end up with a race to the bottom.

"What we have to do is create a virtuous circle of creating wealth and get that wealth to be competed for in the employee market because we've got so many jobs available because the country is prospering, and that becomes a virtuous circle."

"There's no such thing as too much money," the billionaire added.

Caudwell has also founded several charities, including Caudwell Children, Caudwell Youth and Caudwell LymeCo, after he and a large number of family members were diagnosed with Lyme disease.