Wealth Tax: The political flavor these days has shifted to what the left calls “democratic socialism.”
Senator Bernie Sanders was one the first Congressmen to proudly call themselves a socialist.
But, it seems that the movement is growing and is adding more disciples. Senator Elizabeth Warren and Rep. Alexandria Ocasio–Cortez are just a few of our elected officials that follow the teachings of this political philosophy.
One of the most recent ideas, from Sen. Elizabeth Warren, is the wealth tax. Warren’s proposal is relatively simple: tax anyone with assets over $50 million 2 percent a year on their wealth. If you have over $1 billion in assets, the tax goes up to 3 percent a year.
The wealth tax would tax people twice – once on their income and again on the assets they own – even cash held in the bank.
What About Privacy?
In order to impose a wealth tax, EVERYONE would then by law be required to list everything they own right down to your wedding rings so the state could then calculate your wealth to impose a tax.
You will have to prove that your wealth is under the $50 million limit to qualify for an exemption. How else will they know you have less than $50 million unless you report all your assets to qualify for an exemption?
The government will need to know EVERYTHING you own (equities, bonds, jewelry, gold coins, etc).
Do you really want to open pandora’s box just so “the rich can pay their fare share?”
The Wealth Tax is a Failed Policy
Warren’s proposal is nothing new. It has been tried in many socialist nations, but most have already dropped it. In fact, as recently as 1990, according to the Organization for Economic Cooperation and Development, 12 of its member countries imposed a wealth tax on citizens. However, in 2019, only four still impose a wealth tax meaning that eight countries have dropped it.
The irony is that those countries that ended their failed experiment with the wealth tax are the same countries that America’s “democratic socialist” seem to admire the most and want America to follow. These countries include Denmark and Sweden, nations that are often cited in speeches by the likes of Senators Bernie Sanders and Elizabeth Warren, and now Rep. Alexandria Ocasio-Cortez.
Why Did These Countries Drop The Wealth Tax?
The Tax Foundation noted, “Countries have dropped the taxes due to the challenges they pose.” Among others, one of the unintended consequences of the failed policy is the reaction by wealthy people. Instead of voicing their displeasure by casting a vote in the ballot box, they voted with their feet by leaving the country. Wealthy people fled the country to avoid paying higher taxes, taking their investments and jobs with them.
You see, the smart money always find the loopholes. They have the money to pay skilled accountants and high-priced lawyers that wear expensive suits.
When these accountants and lawyers couldn’t find the loopholes in the local tax jurisdiction, they advised their wealthy clients to leave the country.
Thus, the wealth tax imposed on them had some very bad consequences.
Take France, for example. There, “A wealth tax imposed on assets over 1.3 million euros led to an exodus of taxpayers from the country. In 2016 alone, 12,000 millionaires left France, the highest in the world.”
The year before, in 2015, 10,000 millionaires left.
Simon Black of the Sovereign Man website noted, “In France, 513 wealthy households left the country every year for 35 years because they were tired of paying a wealth tax – taking an estimated $175 billion of assets with them.” This, Black adds, has cost France some 400,000 jobs (adding 2 percent to unemployment).
Sweden Ended Its Wealth Tax
The wealth tax imposed in Sweden brought in $600 million a year but ultimately cost the country approximately $200 billion in capital flight.
Needless to say, the wealth tax was a bad idea and not worth it.
Politicians Are Stupid
The irony from this is that while politicians were hoping to raise taxes on the rich to help the poor, they ended up hurting the people they intended to help. If those that remain still have a job, their taxes go up as the wealthy leave.
But, this is always the case when socialist try to tax “the rich”. When the rich leave, the middle- and lower classes, who can’t afford to move to another state or country, pay more of the tax burden.
Tax havens will always exist. Already, many entrepreneurs are relocating their business to Puerto Rico for its many tax incentives.
Be very careful of Sen. Warren and her crony “socialist democrat” buddies. While their Robin Hood ideas and policies may sound good, when they are implemented, if they are not reversed, they will eventually lead to the problems going on today in Venezuela.
Do You Really Want To Give Bureaucrats More Money?
Stop trusting these politicians. They are not here to save you.
When have they ever shown you that they know how to manage money?
All these candidates want is to take your money and redistribute it to the people who keep them in power.
There will be more government spending that they can’t afford.
The national debt will only get larger.
Meanwhile, their net worth will only rise.
Why else do they refuse to implement term limits?
Just study how their wealth grows the longer they stay in power. Many enter Washington, D.C. in debt with student loans and mortgages and finish their career as millionaires with homes in several locations.
When will people realize that MOST politicians in the world are corrupt and cannot be trusted? Just watch and listen to Rep. Alexandria Ocasio-Cortez explain how ridiculously easy it is for politicians to become rich once they are in office.
Unfortunately, too many people have a socialist impulse which makes them want to believe in smooth talking politicians who will “determine which building goes where, how high it will be, and who gets to live in it, and what the rent will be.”
And now, the trend for American socialism is picking up steam.
Get ready for higher taxes, less disposable income, fewer private sector jobs, and rising government debt.