Originally Posted by David Cotterell
The wealth of the top 1% increased by $6.5 trillion last year, mainly driven by soaring stock prices and financial markets, according to the Federal Reserve.
The stock portfolios of the top 1% are now worth $23 trillion, and they own a record 53.9% of individually held shares, according to the central bank.
“Rising wealth inequality drives the stock market, which then drives more wealth inequality,” said Edward Wolff, professor of economics at New York University.
Think of what a 20% tax on all those trillions would mean.... without materially affecting those taxed. Medicaid for all, better schools, infrastructure, libraries, the arts, better LIFE...
Q: What's the difference between a millionaire and a billionaire? A: A billion dollars ......
Dave
Dave, I'm not sure I entirely understand. The gain on the
sale of stocks is already taxed at 20% when the stocks are sold. (Or at a higher percentage, if the stocks have not been held for over a year before they are sold). I guess you are suggesting an annual tax of 20% be placed on stock
holdings? That would be unprecedented. It would, as Richard states, merely be confiscating wealth. What legal principle, in the US, would support simply confiscating wealth? I can accept taxing capital gains, taxing income, taxing sales, and taxing the right to receive a large inheritance. I am not OK with simply taxing accumulated wealth that is being held by the owner for later disposition. The economic ramifications of your proposal would be staggering. Rather than Medicaid for all, better schools, infrastructure, libraries, the arts, better LIFE... I would suggest that the middle and lower economic classes would suffer mightily. See Venezuela, see Russia.
Also,
"Think of what a 20% tax on all those trillions would mean.... without materially affecting those taxed. Medicaid for all, better schools, infrastructure, libraries, the arts, better LIFE..."I disagree entirely. The billionaires would plan accordingly, and this new tax would not affect them much. On the other hand, people like me and my wife who are counting on our stock portfolios for retirement income would be extremely hard hit because we do not have the funds or expertise for world-wide tax planning strategies. Any tax like whatever you are proposing must target the upper middle class and regular middle class to be effective. The overall standard of living from the upper middle class to the poorest of the poor would be diminished quite a bit.
Jim