Posted on 11/06/2019 8:37:40 AM PST by karpov
Neil Irwin has an interesting piece about that concept. Basically, if you confiscate people’s wealth to pay for government freebies today, that wealth won’t be there anymore when you want to do the same thing tomorrow.
As Irwin writes, Warren’s 6 percent wealth tax on billionaires would quickly eat away at wealth held in assets that don’t grow in value much over time (such as real estate and just generic stuff like yachts); even her 2 percent tax on those with more than $50 million could entirely cancel out returns from safe investments. More aggressive investments could continue to grow against a 6 percent tax . . . but Warren wants other taxes on these folks as well, such as a more aggressive approach to capital gains.
He continues:
Moreover, the existence of these taxes would increase the incentive for a rich person to take steps to avoid taxes, many of which would have the similar effect of reducing their wealth. If you are a billionaire planning to give much of your fortune to charity after your death, why not do so immediately to avoid spending decades paying a 6 percent annual tax to the government? Or, perhaps less nobly, why not spend it on leasing yachts or chartering private jets for fantastic vacations? . . .
[A] president seeking to pay for a policy agenda with taxes on extreme wealth might want to think ahead to what should be done if those taxes result in a lot less extreme wealth to tax.
Another big aspect to this, which Irwin doesn’t really address, is how quickly the American economy would generate new zillionaires whose fortunes would be newly subject to the tax.
(Excerpt) Read more at nationalreview.com ...
There is not enough wealth to tax to get all the spending the Democrat Fascists have promised. The only way to get it is to nationalize the pension/401k funds.
Voters better wake the hell up in 2020
This is why I’ve liquidated all my 401K’s.
To hide your billions?
It is impossible to tax the entire accumulation of wealth more than once or twice. By then, the “wealth” shall have dispersed to other places, beyond the reach of the taxing authorities.
There are liquid assets, and those assets that cannot be easily liquidated. The liquid assets would “disappear” quickly, once these resources would have been subject to taxation (confiscation in installments, is more like it). The other assets would be made to be unproductive, making no return on investment, and essentially much decreasing their apparent or perceived value, vastly diminishing the pile of “wealth” that the predatory taxation policies would have seemed to be directed at.
Cash flow is the only reliable source of revenue available to taxing authorities, either as a consumption tax, or or as a tax upon the generated income. Corporations and entities that do commerce with the public do not pay taxes, they collect them, as the taxes assessed on them are added to the overhead and included in the price of the product or services they sell.
There ain’t no such thing as a free lunch - TANSTAAFL.
I wish. :)
I’m in Kentucky. The property taxes are so low here you can buy property and just sit on it with very little property tax. It’s better than a mattress.
See Judge Learned Hand for the answers.
Or CCR-
“Some folks are born silver spoon in hand
Lord, don’t they help themselves, oh
But when the taxman comes to the door
Lord, the house looks like a rummage sale, yes
It ain’t me, it ain’t me, I ain’t no millionaire’s son, no, no
It ain’t me, it ain’t me; I ain’t no fortunate one, no”
Anyone with the resources to flee from taxation will do so. FACT!
Indeed, simply living in a country with a modern, free enterprise economy provides an abundance of employment opportunities and an astonishing range of goods and services. That is why much of the Third World is desperate to get to the US, Canada, and Europe. Because of their immense pools of private wealth, ordinary people are more highly valued as factors of production and as customers.
Taxing the residual wealth itself after taxes have been paid is a whole different thing. That amounts to legal theft.
It's not sustainable. Once you take all the golden eggs, that's it.
And wealthy people will to look to avoid leaving cash wealth laying around in accounts for the government to tap into every time they need more money.
They will either spend it on expensive assets like real estate, planes, yachts, artwork, jewelry or other non-liquid assets. Or they will hide it offshore in more forgiving depositories.
Not a good idea at all.
Before addressing that question address this question; Where is the proposed amendment to give government the power to directly tax a citizen's wealth?
The 16th Amendment gave government the power to directly tax the citizens.
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
Where is the proposed amendment to give government the power to directly tax a citizen's wealth?
It’s not a tax, gd it! It’s confiscation! Every year! Say “confiscation, not tax!” Now repeat 100 times.
If you think they will not go after your retirement savings, you are a fool. Bammy said that he wanted to! He wasn’t able to, but do you think that a lizzy warden will NOT go after them?
Rookie forget that Trump ran on taxing hedge fund billionaires. Ryan and McConnell blocked that, but it was one of the things that appealed to blue collar Democrat voters in rust belt
I have no problem with taxing billionaires a little more. Very few of them are pro-MAGA. They seem to be aggressively open borders and cheap labor express ad a group. And Republican billionaires like Kochs want to cut the safety net for the middle class elderly - Social Security
Seeing all the Freepers reverting to preTrump GOP orthodoxy on protecting billionaires is sad
As for universal health care ( with a private option) , people talk about problems with it in Canada, but Israel has it , and I’ve read good reports from families who’ve immigrated there and like the system
People forget that Trump ran on taxing hedge fund billionaires. Ryan and McConnell blocked that, but it was one of the things that appealed to blue collar Democrat voters in rust belt
I have no problem with taxing billionaires a little more. Very few of them are pro-MAGA. They seem to be aggressively open borders and cheap labor express ad a group. And Republican billionaires like Kochs want to cut the safety net for the middle class elderly - Social Security
Seeing all the Freepers reverting to preTrump GOP orthodoxy on protecting billionaires is sad
As for universal health care ( with a private option) , people talk about problems with it in Canada, but Israel has it , and I’ve read good reports from families who’ve immigrated there and like the system
Taxes reduce or destroy the incentive to take risks and work hard. Tax the wealth of the most innovative people, and they have no incentive to continue producing wealth. It will destroy the entire economy, and with it the world economy. The only result of codifying the extreme jealousy and resentment of the Left will be a world war.
Warren and the rest of the rats will always make sure their money is protected. See the foundations like Buffett and Gates and all the others.
Unlike Democrat Fascist party social media bots lying about being Trump supporters, real Trump supporters understand basic math and economic
Really you think a health care system that takes care of less people then the population less then 1 of our 50 states can just be magically expanded to fit the whole US?
You really this stupid?
You really this fundamentally ignorant of how economics works?
Where is you goddess Tusi going to get $52 Trillion to fund her fantasy land health care “medicare of all” nonsense.
Take every penny over $100,000 from everyone in the USA and you do not even fund the current Fed Govt for more then 30 days.
There NO WAY to “tax the rich” and pay for your Democrat Fascist Party spending promises. 100% confiscation over $100,000 does not even get you there fool
I’m already taxed big time for health care. Big premiums and high deductibles. Stupid Warren never points that out to people. She can’t even sell her own ideas
I don’t understand why Warren doesn’t just say she identifies as an Indian. After all, she says males can identify as women and use your daughters bathroom at school.
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