The problem as I see it is that for many of the rich, wealth is tied up in stocks, bonds, or “articles” like artworks. For Bill gates to pay his taxes for Warren, he would probably have to sell Microsoft stock. He them pays the Capital gains taxes, along with his regular taxes, then writes the $6.4 billion dollar check. Question is, who buys his stock? Maybe the first year investors, but then they owe taxes on what they just bought the next year. For Bill Gates, it would appear year 2 under her plan will be water, lather, rinse, and repeat. Year 3 no one is buying his stock because they have to pay taxes on the newly acquired wealth. Does the government now step in to offer him what the government decides is a fair price for his stock? 4-5 years later, the “people”(government) will be owning everything. At last!!!!! TRUE SOCIALISM!!
What a P O S idea. But we can’t expect much more from a 1/258th Indian can we? All that white blood just corrupted the native intelligence.
Well thought out synopsis.
Wealthy people have it tied up in hard assets of some kind. Real estate, planes, yachts, artwork, jewelry, investments or other non-liquid assets. Or they will hide it offshore in more forgiving depositories.
But they will not lay down and play dead while the government keeps tapping their wealth.
Warren's wealth tax is not sustainable. Once you take all the golden eggs, that's it. It's gone.
It amounts to legal theft by the government.
Requiring ALL the US billionaires to liquidate some assets in order to pay a wealth tax, will drive stock prices down.
Worldwide, there are 2,153 billionaires, with a combined net worth of $8.7 trillion.
The US has just over 600 billionaires.
If the US billionaires make up 1/2 the total worldwide billionaires wealth, that is $4.35 trillion.
THAT ALONE wouldn’t finance 1 years worth of fauxahontas’ skeam.
But .06% tax on 4.35 trillion, means $260 billion gets pulled out of the stock market.
The market would drop noticeably.
Its one thing to say Bill Gates is worth 107 Billion, when Microsoft stock is at $144 a share.
But what it is “worth” today is different than what he’d sell it for.
Instead of $144 a share, maybe he sells it for $130 a share.
A 10% drop.
Now does he pay $6.4 billion, or $5.7 billion, because of actual sell value vs estimated value?
Next question. Who is buying this stock?
US citizens,
or foreign entities.
Great.
Let’s have foreign entities waiting to scoop up American assets, cheap, at fire sale prices.
These are just the Billionaires alone.
And it only brings in $235-$260 Billion, out of $5.2 trillion needed.
Every single person “WORTH” $1 million would have to be involved.
How many of those, is their house their single largest asset?
How many plumbers and electricians are “worth” $1 million, on paper, in their 401K’s and IRA’s.
As Bill Gates liquidates his stock, it drives the price down, thus driving everybody elses wealth down.
The plumber or electrician who was thinking about retiring in a year or 2 might have to put it off 2 or 3 or 5 years.
What a vicious circle.
You need not worry about such details.
The wealthy would move their assets out of US control the moment there was a Congressional whisper of a wealth tax.
They didn’t get wealthy by being stupid.