What happens if you wealth tax the independently wealthy and wealthy retirees who have no proportionally comparable income?
Are you not forcing them to liquidate some of their assets in order to pay?
All this, presumably, after they already paid all the associated sales and property taxes when they acquired their wealth on the front end.
Now I’m asking this question more based in principle, because it is is highly likely that anyone who is wealthy enough to get into Warren’s 3% bracket are probably receiving income off of investments. It seems very unlikely that anyone with that kind of wealth doesn’t have a good part of their assets into income generating investments, but that’s not a given.
Also, if your wealth is not growing and it’s being depleted by 2 to 3% annually, how long does it take before you fall out of the wealth tax brackets?
The more you ask questions, the more it becomes very fair to call it intentional wealth redistribution. In other words, it’s very probably less about delivering anything to those in need as it is about punishing those who are not.
There are three things that would happen, if her plan goes to implementation:
1. Companies would raise prices on products and services, to ensure the same profit level survives on. So you’d pay more for cars, tires, ovens, coffee, etc. It’s not the companies paying...you the consumer would pay.
2. If you were a wealthy retiree...you’d quietly move your money into Panama, Costa Rica, or the Philippines.
3. All of this action (by companies, and people moving cash outside of the US), would leave to a stalled economy, fewer jobs, and a lesser GDP for at least three years...until someone admits a damage situation exists.
She (if she won) would be a one-term president, with the Democratic Party in serious damage control by the 3rd year, and few options left other than dumping medicare-for-all, and the wealth tax. Go and ask them what medical options are left once that happens, and they can’t answer on that.