Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Economic Reality of a Wealth Tax

Economics / Taxes Sep 10, 2014 - 05:24 PM GMT

By: BATR

Economics

Proponents of big government, from both the left and right, share one important trait; namely, both spend their waking hours dreaming up new schemes to tax wealth. Only a blind, deaf and dumb observer of economic imbalance would deny that the massive accumulation of worldly assets into the hands of the smallest number of robber barons in all of history is at the core of most social unrest and global instability. However, adopting a Marxist outlook on the evils of the bourgeoisie simply confuses the nature of the financial magnates, while blaming the hard pressed merchant class for conducting beneficial business. Creation of tangible wealth is the greatest achievement in the uplifting and improvement of the human condition, when that stream of riches flows between and among entrepreneurs and business proprietors.


A viable middle class only exists, when the velocity of money grows, as expectation of future prosperity becomes the cornerstone of economic development. Wealth is not the problem. Only the crony capitalists, who game the political system and fix the financial markets, present the fundamental reason why sharing of wealth has become an intangible for most people.

The bighearted collectivists have a champion for their cause. Sen. Sanders calls for wealth tax at AFL-CIO convention, and presents a time tested onslaught on the opulent.
"Sen. Bernie Sanders, a self-described socialist, called for a progressive estate tax on multi-millionaires and billionaires during a speech on Saturday.

"A nation will not survive morally or economically when so few have so much while so many have so little," Mr. Sanders said at the Vermont AFL-CIO annual convention.

"We need a tax system which asks the billionaire class to pay its fair share of taxes and which reduces the obscene degree of wealth inequality in America," said Mr. Sanders, an independent who caucuses with the Democrats.According to Mr. Sanders, taxing the top .25 percent of wealthiest Americans is the fairest way to reduce wealth inequality, lower the $17 trillion national debt and pay for investments in infrastructure,
education and other neglected national priorities.

Mr. Sanders‘ proposal would not raise taxes for the remaining 99.75 percent of Americans."

If you are disturbed by such an assault on those nasty rich, the "so called" right wing refuses to be outdone or out maneuvered.

Stanford University published Ronald McKinnon argument, The Conservative Case for a Wealth Tax. "In order to have a fairer tax system, we should implement a new federal wealth tax in addition to the federal income tax."

Mr. McKinnon goes on to propose that:

"With a large exemption of say $6 million that effectively excludes more than 95 percent of the population, a moderate flat tax, say 3 percent, on wealth so defined could then be imposed . . . The new wealth tax would be levied on the global personal domestic and foreign wealth of American residents."

Note the apparent common ground in both positions. The income tax remains and a new revenue enhancement, levied on the assessed value of all wealth and possessions, becomes law. Guess Sanders’ confiscation looks like a bargain, compared to the approach taken by the "so called" fiscal conservatives.

Completely absent from these trial balloons is political and economic reality. Can anyone imagine a circumstance whereby a George Soros or a Sheldon Adelson would volunteer to surrender any additional portion of their wealth, when much of their fortunes are devoted to the manipulation of social causes and political king making?

Do you really believe that the Warren Buffet and Bill Gates ‘Giving Pledge’ along with the 115 Billionaires sign to give away more than half of their fortunes are for real? Even, Mr. McKinnon acknowledges two sacrosanct loopholes in the current code, "charitable or philanthropic contributions to be deducted, and not to tax the imputed rental value of owner-occupied homes while allowing full deductions for mortgage interest rates."

A wealth tax assessed, while you are living, will alter tax planning often and significantly, as opposed to the estate tax that usually is prepared for well in advance.

The Rates of Wealth Tax in France serves as an example to keep in mind.

Fraction Taxable Rate of Tax
€0 - €800,000 0%
€800,000 - €1,300,000 0.50%
€1,300,000 - €2,570,000 0.70%
€2,570,000 - €5,000,000 1%
€5,000,000 - €10,000,000 1.25%
€10,000,000+ 1.50%

When such a tax rate is, half or less in France from that proposed by Mr. McKinnon, you know we are in trouble.

The underlying objective in these fake wealth tax schemes has nothing to do with closing the gap between Sanders’ .25 percent of wealthiest Americans, and the working class. In essence, the goal is simply to raise more revenue for big government.

The only true and factual way to stop the insatiable greed of the crony political alliance that underpins the state/capitalist establishment is to break up the financial despotism of the banksters Federal Reserve fiat money swindle.

Taxes are forced expropriation of funds. A blueblood aristocracy once ruled society. Today the market insiders, counterfeit their ill-gotten gains, using super computer algorithmic trading systems. Just because much of this theft originates from a nouveau riche breed of jackals, it does not exempt their predecessor generations from the horrendous crimes of the 19th and 20th century feudal lords of the monetary system.

Until society comprehends that, the wealth disparity can only be narrowed through the dismantling of the fraudulent favoritism of political special treatment, which includes the claw back of stolen wealth, will the ordinary man regain an opportunity to reap the rewards of his own labor and risk taking.

Instead of swelling the coffers of the state treasury, recompense the architects, managers and visionaries of small business, who create the real jobs in useful and productive endeavors. They deserve access to the confiscated wealth of the elite criminal class, not government.

Let actual free enterprise compete by encouraging a culture of rewarding hard work and honest commerce. Decades of social engineering, by technocratic regulation, only favored the 1/4 of the 1%. This is the literal path to social and economic justice.

James Hall – September 10, 2014

Source: http://batr.org/negotium/091014.html

Discuss or comment about this essay on the BATR Forum

http://www.batr.org

"Many seek to become a Syndicated Columnist, while the few strive to be a Vindicated Publisher"

© 2014 Copyright BATR - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors

BATR Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules