The whole scheme would be a failure.
In her plan if you don’t have the cash on hand the Government will take assets from you for the tax. Then the government has to sell those assets to get the cash. Now the government has no business sense at all so they will essentially dump all these assets on the market and it will end up a fire sale.
They will get only what will be paid and then who will be buying, certainly not individuals they have no money. Will corporations be buying? All assests will end up being depressed.
Then here’s another thing not being talked about. You signed over the assets that were valued by your CPA’s and the government accepted them at that value. But when the government sold them they didn’t get the full value. So will the government come back at you and force you to sell or turn over more assets to make up the loss? Would you be surprised if they did that.
Then every year after the first the take gets smaller and smaller as the value of all assets plummet. Then What Ms. Warren?????????????/
I couldn’t believe that is how it will work. The government cannot tell you what the value of some piece of art is. The market determines it. The market price for all high priced assets will plummet immediately as everyone will be liquidating to pay the taxes flooding the market with supply, and nobody will want to own them except for their aesthetic value - certainly not because they think they will appreciate in value nobody will want them to appreciate!
If you did own for example a collection of art or other property and had to fork over say $60 million to pay the tax but instead you gave the government a painting which they then sold for $20 million, you would argue the opposite - that the government over-valued your collection and that you should get a refund.
Not to mention the many other schemes. There are plenty of loopholes. Send the art overseas where it is not taxed. Place them into bonded warehouses or escrow accounts indefinitely, where the ownership can be disputed. Bury them, and replace the ones on display with known forgeries. Divide your assets up among different entities or among your family. You and the spouse are worth $2 billion? Give $1 million to charity and get a divorce, now you are each only worth $999.5 million and just saved almost $100 million in taxes in the first year alone. Her proposal is one of the most economically ignorant and destructive ideas imaginable.