“We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” ― Winston S. Churchill
Senator Elizabeth Warren — now part of the Senate Finance Committee — gleefully introduced her “ultra-millionaire tax” plan that she says would affect people with a net worth of over $50 million. During a press conference, she cited inequities created by the coronavirus pandemic among a few reasons for this “necessary” initiative.
This wouldn’t be the first time Sen. Warren plotted over the purses of the prosperous. She has introduced other plans, upping the ante each time. First, she targeted millionaires. But this time, it’s billionaires, and it will collectively cost them $78 billion a year.
This new legislation, if passed, puts an annual 2% tax on assets over $50 million but under $1 billion. This includes items that — you guessed it — are already paid for. In addition, she proposes a one-time 40% exit tax on Americans who have net worth of more than $50 million who decide to leave the United States to call another country home.
So we’re going to tax them for existing, but also tax them for leaving? Imagine wanting to take your family and fortune to another nation due to increasing taxes in America, only to have to pay close to half of your net worth for renouncing your citizenship. It’s like damned if you do, damned if you don’t. You’ve gotta pay for being blessed.
Interestingly enough, this bill — if passed — would only impact 660 Americans possessing $4.1 trillion.
And what of the end result? Exactly how many more billionaires will a tax hike create? If we are really closing a “racial wealth gap”, will there be more “black and Latinx” people possessing enormous wealth as a result? Or will there be more government-sponsored healthcare and education? Last time I checked, no one became wealthier as a result of more welfare programs.
Instead, this will create another government trickle-down strategy to take in millions from taxpayers only to convert it into scraps for the lower class.
A better strategy would be to create pathways to entrepreneurship so that more families can embrace the American Dream. In fact, that was what President Donald Trump was going to do without penalizing Americans for being wealthy. Too bad, so sad.
Senator Rand Paul, one of few voices of reason, said Warren’s plan would “destroy our country” and that “capitalism uplifts all.” At least what he says can be proven in nations all across the globe that have embraced free markets and capitalism for themselves.
So before we even flirt with the notion of something as balsy as an “ultra-millionaire tax”, the ball is in Warren’s court as she’ll need to show us an example of a wealthy nation implementing a similar and successfully executed tax plan such as hers. (Of course, she can’t.)
Nowhere in the world is there an example of a nation with both high taxes and high levels of prosperity. But perhaps this concept is relative. While some of us desire less government and more financial freedom, Warren’s definition of prosperity could be equal to fewer elites but more government dependence.
Somehow, money is bad, so we need more money to fix our money issues so that we all can have equal amounts of less money. Problem solved.
Of course, a plan like this contradicts a nation founded on the principles of life, liberty and the pursuit of happiness. And… considering the number of wealthy politicians that exist, we can expect to hear a resounding nay on that basis alone anyway.
SOURCES:
https://www.boston.com/news/politics/2021/03/01/elizabeth-warren-wealth-tax-biden
https://www.cnn.com/2021/01/26/business/billionaire-wealth-inequality-poverty/index.html
https://www.foxbusiness.com/economy/warrens-wealth-tax-would-cost-100-richest-americans-78b
