Someone needs to explain the principles of diminishing returns to Warren. If you are worth $1 billion exactly you will pay $60 million in taxes the first year only. After that your rate drops to 2% and blows a hole in her budget. Eventually all billionaires will be erased from the planet unless they can grow their fortunes by more than the wealth tax.
And this doesn’t even include the many other problems, such as valuations of real property, art, jewels etc. Few will want their assets to appreciate them into a new wealth tax bracket. Plus, many people will be shedding these types of assets to raise cash to pay the taxes. Someone may be worth $1 billion but that doesn’t mean they’ll have $160 million in cash flow over the next 3 years to cover the taxes.
Then there will be all kinds of scheming. Husbands and wives can divorce, split the assets among themselves, and save a bundle. Nothing has to change but the paperwork. People trading art with each other for $1 each, cutting the taxable value. And who is exempt? Do museums have to pay 6% on the value of their $1B art collections? How about hospitals with big city properties? Start your own foundation and fund it - better to do that and really help people, than to give it to the government to ‘help’.
“valuations of real property, art, jewels”
A wealth tax will make jewels and gold a popular investment. The rich will buy gold and just stash it somewhere safe (hidden). The government won’t be able to tax wealth they can’t find.
Buying $1 billion in gold (and storing it in a vault in Monaco) saves $60 million in taxes every year. That is a 6% rate of “return”.
The wealth tax won’t bring in nearly as money in revenue as the libs pretend.