A Wealth Tax Would Severely Harm The Economy

[gatomontes99]

The wealth tax is the latest way democrats are proposing to bilk Americans of their money and fund the massive fraud that is our government's budget. A wealth tax will severely harm our economy. 

A wealth tax is: 

Quote

A wealth tax, also called a capital tax, equity tax, or net wealth tax, is a tax on an entity's holdings of assets or an entity's net worth. This includes the total value of personal assets, including cash, bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses, financial securities, and personal trusts (a one-off levy on wealth is a capital levy).

https://en.wikipedia.org/wiki/Wealth_tax

Let's take Calofornia's "one-time" wealth tax on billionaires as an example of how this would destroy economies. They want voters to vote on a 5% wealth tax (CNBC). 

The 5% would be the sum of all assets a billionaire owns. That would mean real estate, investments, cash, businesses etc would all have to be assessed for value and then totaled to determine the taxable amount. 

Once that taxable amount is determined, the billionaire has to pay the 5% with cash. At a minimum, that would be $50 million. Most rich people don't have all their assets in cash. They have property, investments, businesses, etc. The cash they do have is considered operating capital. Cash they use for day to day life. 

Fifty million is not just play money. They don't have this sitting in a bank account just waiting to be spent. How would they get the cash then? 

The cash would likely come from assets that are easy to sell. The easiest assets to sell are stocks, bonds and other investments. This will be where the economy gets harmed the most. If every billionaire had to sell their assets at the same time, they would flood the market. Econ 101 tells us that when a market is flooded with supply, the price goes down. 

The biggest issue with lower stock prices is the loss of leverage. Lower stock prices make it harder for businesses to raise capital. If they can't raise capital, or they have to pay more to get the capital, growth becomes harder. If a business can't grow the economy can't grow. 

Do not expect this "one-time" tax to be a one-time or just for billionaires. Eventually, it will be millionaires too. Imagine you have a $500,000 home, a car worth $30,000, a 401k worth $400,000 and $70,000 in cash. Congrats, you are a millionaire. Now you have to raise $50,000 in cash to pay your taxes. The first year is doable. But what about next year? The year after that? 

There are examples of how a wealth tax has harmed local governments. Maryland tried it in 2007.

Quote

As we and others have noted before, the Comptroller of Maryland has reported that the number of “millionaire” returns tumbled sharply between 2007 and 2008, a 30% drop in filers and 22% drop in declared income. Rather than income taxes from this group rising by $106 million, they fell by $257 million.

https://taxfoundation.org/blog/marylands-millionaires-missing-after-income-tax-hike/

Instead of raising tax revenues, revenues fell drastically. This is what is in California's future. This is also what is in the future for America if we install such a suppressive tax. 

If America employs a wealth tax, you will see a rise in LLCs that are listed as investment companies. These investment companies would all magically hold just under the wealth tax number and/or they will be off shore investment accounts, leaving America void of capital. The stock market would falter. Business growth would be stymied. Slowed business growth would slow job growth. 

Another issue would be the offshore of businesses. A wealth tax would force businesses to flee the US or be forced to pass on taxes. To find a cost advantage, they would move to more tax friendly regions. 

Overall, the effects on the economy would be devastating. poverty would rise, jobless claims would rise, the stock market would fall and businesses would flee. 

[Nationalist]

Welcome to Canada.

[robosmith]

4 hours ago, gatomontes99 said:

The cash would likely come from assets that are easy to sell. The easiest assets to sell are stocks, bonds and other investments. This will be where the economy gets harmed the most. If every billionaire had to sell their assets at the same time, they would flood the market. Econ 101 tells us that when a market is flooded with supply, the price goes down. 

IF frogs had wings, they wouldn't thump their butts.

AKA, your cherry picked scenario designed to discredit the wealth tax is completely dishonest and easily AVOIDED.

Just like YOU.

[User]

2 hours ago, robosmith said:

IF frogs had wings, they wouldn't thump their butts.

AKA, your cherry picked scenario designed to discredit the wealth tax is completely dishonest and easily AVOIDED.

Just like YOU.

Let’s see you actually come up with a real substantive argument for once. 
 

Can you? 

[WestCanMan]

7 hours ago, gatomontes99 said:

The wealth tax is the latest way democrats are proposing to bilk Americans of their money and fund the massive fraud that is our government's budget. A wealth tax will severely harm our economy. 

To be honest, the first line of defence against the burgeoning budget should just be fraud prevention, which has shown incredible gains, but every time $10B in wasteful spending/fraud is cut from the budget the Democrats scream like their baby is being ripped apart by hyenas. 

"OMG, YOU CAN'T STOP THE SOMALI SCAMMERS! THAT'S RACIST!!!!!"

"NVM THE MEDICARE SCAMMERS IN LA! TELL THAT KID TO KEEP HIS F'N TRAP SHUT!"

 

And the goal of targeting the rich isn't to elevate the poor - because the Dems love their slave-class - it's just to gain gov't control of industry, like every communist regime does...

When people in NYC are asked "What are you gonna do when the wealthy people leave, but they take their business with them?", they literally say "We will just keep their stuff here, HAHAAAA!" I'm not sure if they're aware 'what form of gov't that represents', but if you told them that was what fascists and communists do, most of them would wink and nod. Or they'd say "IT'S COMMUNIST, NOT FASCIST!", as if that's somehow better. 

[CdnFox]

7 hours ago, gatomontes99 said:

The wealth tax is the latest way democrats are proposing to bilk Americans of their money and fund the massive fraud that is our government's budget. A wealth tax will severely harm our economy. 

A wealth tax is: 

Let's take Calofornia's "one-time" wealth tax on billionaires as an example of how this would destroy economies. They want voters to vote on a 5% wealth tax (CNBC). 

The 5% would be the sum of all assets a billionaire owns. That would mean real estate, investments, cash, businesses etc would all have to be assessed for value and then totaled to determine the taxable amount. 

Once that taxable amount is determined, the billionaire has to pay the 5% with cash. At a minimum, that would be $50 million. Most rich people don't have all their assets in cash. They have property, investments, businesses, etc. The cash they do have is considered operating capital. Cash they use for day to day life. 

Fifty million is not just play money. They don't have this sitting in a bank account just waiting to be spent. How would they get the cash then? 

The cash would likely come from assets that are easy to sell. The easiest assets to sell are stocks, bonds and other investments. This will be where the economy gets harmed the most. If every billionaire had to sell their assets at the same time, they would flood the market. Econ 101 tells us that when a market is flooded with supply, the price goes down. 

The biggest issue with lower stock prices is the loss of leverage. Lower stock prices make it harder for businesses to raise capital. If they can't raise capital, or they have to pay more to get the capital, growth becomes harder. If a business can't grow the economy can't grow. 

Do not expect this "one-time" tax to be a one-time or just for billionaires. Eventually, it will be millionaires too. Imagine you have a $500,000 home, a car worth $30,000, a 401k worth $400,000 and $70,000 in cash. Congrats, you are a millionaire. Now you have to raise $50,000 in cash to pay your taxes. The first year is doable. But what about next year? The year after that? 

There are examples of how a wealth tax has harmed local governments. Maryland tried it in 2007.

Instead of raising tax revenues, revenues fell drastically. This is what is in California's future. This is also what is in the future for America if we install such a suppressive tax. 

If America employs a wealth tax, you will see a rise in LLCs that are listed as investment companies. These investment companies would all magically hold just under the wealth tax number and/or they will be off shore investment accounts, leaving America void of capital. The stock market would falter. Business growth would be stymied. Slowed business growth would slow job growth. 

Another issue would be the offshore of businesses. A wealth tax would force businesses to flee the US or be forced to pass on taxes. To find a cost advantage, they would move to more tax friendly regions. 

Overall, the effects on the economy would be devastating. poverty would rise, jobless claims would rise, the stock market would fall and businesses would flee. 

It is a horrible idea and violates the principle that money should only be taxed once.

In addition people will avoid it by various means, but that will have negative effects as well.

[Deluge]

4 hours ago, robosmith said:

IF frogs had wings, they wouldn't thump their butts.

AKA, your cherry picked scenario designed to discredit the wealth tax is completely dishonest and easily AVOIDED.

Just like YOU.

Your need for more taxes certifies you as a level 5 masochist. We have no need for woke government sluts, robomarx. You should leave. 

[gatomontes99]

5 hours ago, robosmith said:

IF frogs had wings, they wouldn't thump their butts.

AKA, your cherry picked scenario designed to discredit the wealth tax is completely dishonest and easily AVOIDED.

Just like YOU.

If my argument was so bad, why couldn't you come up with anything of substance to refute it?

[WestCanMan]

2 hours ago, CdnFox said:

It is a horrible idea and violates the principle that money should only be taxed once.

Once 🤣

Welcome to Canada...

Pay corporate tax, then income tax, then pay GST and provincial sales taxes, sin taxes, carbon taxes, capital gains tax, property taxes, etc.

And everything that you buy was already taxed multiple times before it got to you, and the accumulation of all those taxes is reflected in the price you pay before your own tax. 

[CdnFox]

1 hour ago, Deluge said:

Your need for more taxes certifies you as a level 5 masochist. We have no need for woke government sluts, robomarx. You should leave. 

Robo pays zero in taxes now, and he's prepared to DOUBLE that and doesn't care what you think!!! 

Edited April 10 by CdnFox

[herbie]

The billionaires would run away to Denmark, Norway?

Stop kidding yourselves your kowtowing to billionaires is f-cking up the whole world because that's the same excuse we all hear all the time... they'll run away to the States if we tax them a penny more.

[CdnFox]

21 minutes ago, herbie said:

The billionaires would run away to Denmark, Norway?

Stop kidding yourselves your kowtowing to billionaires is f-cking up the whole world because that's the same excuse we all hear all the time... they'll run away to the States if we tax them a penny more.

What are you even talking about?

No, that's right. It's Friday. I guess you've earned your drink or two. Carry on

[User]

The underlying problem as is with most any issue is the fundamental ignorance of those on the left. 

They simply do not understand wealth. 

 

[eyeball]

2 minutes ago, User said:

The underlying problem as is with most any issue is the fundamental ignorance of those on the left. 

They simply do not understand wealth. 

As for the right, you people simply think sucking up to wealth is all anyone needs to know.

[User]

1 hour ago, eyeball said:

As for the right, you people simply think sucking up to wealth is all anyone needs to know.

You don't even get what you are talking about. 

[bush_cheney2004]

2 hours ago, eyeball said:

As for the right, you people simply think sucking up to wealth is all anyone needs to know.

 

I never got a job from a poor man (or woman).

or this version:

Quote

Don’t knock the rich. When was the last time you were hired by somebody poor?

 

[Barquentine]

13 hours ago, WestCanMan said:

because the Dems love their slave-class

AI:
As of early 2026, minimum wages in Democrat-led (blue) states are significantly higher than the $7.25 federal rate, generally averaging well above $15-$16 per hour

Lowest Minimum Wages (Federal Rate of $7.25 - Primarily Republican-led)
These states have not raised their state minimum wage above the federal standard: 
Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming. 

[Barquentine]

So the idea should be that we tax money, not people. But when we tax the very poor, that is taxing on them as people who already can't afford a good life.

But if a billionaire had to pay an extra 2% they would still have $980,000,000. Think that's enough to buy groceries?

Why did Warren Buffett say he should be taxed more?

[User]

5 minutes ago, Barquentine said:

So the idea should be that we tax money, not people. But when we tax the very poor, that is taxing on them as people who already can't afford a good life.

But if a billionaire had to pay an extra 2% they would still have $980,000,000. Think that's enough to buy groceries?

Why did Warren Buffett say he should be taxed more?

See?

Here you have a leftist conflating income and wealth. They think rich people are like Scrooge McDuck swimming in their vault of cash... 

They have no idea what they are talking about. 

 

[Barquentine]

6 minutes ago, User said:

Here you have a leftist conflating income and wealth. They think rich people are like Scrooge McDuck swimming in their vault of cash... 

They have no idea what they are talking about. 

I guess you're right. Those billionaires with their stocks, securities, bonds, real estate, yachts...maybe we could start a GoFundMe for them.

[eyeball]

10 hours ago, User said:

You don't even get what you are talking about. 

And you do? Do tell then.

[eyeball]

9 hours ago, bush_cheney2004 said:

I never got a job from a poor man (or woman).

Slumlords can make a fortune off poor people.

[WestCanMan]

7 hours ago, Barquentine said:

AI:
As of early 2026, minimum wages in Democrat-led (blue) states are significantly higher than the $7.25 federal rate, generally averaging well above $15-$16 per hour

Lowest Minimum Wages (Federal Rate of $7.25 - Primarily Republican-led)
These states have not raised their state minimum wage above the federal standard: 
Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming. 

Neat. Now tell me what the minimum wage is for all the illegals that the Dems bring in to work under the table and live in slums?

It's totally racist for the Dems to guarantee a minimum wage for Americans that's so much higher than what their illegals make. 

[User]

7 hours ago, Barquentine said:

I guess you're right. Those billionaires with their stocks, securities, bonds, real estate, yachts...maybe we could start a GoFundMe for them.

Spite, jealousy, and whatever other emotions you have because you don’t like more success full people and want to blame them is your problem. 
 

Turn your life around, take responsibility for yourself. 

1 hour ago, eyeball said:

Slumlords can make a fortune off poor people.

Poor people can really take advantage of landlords by abusing the system. 

1 hour ago, eyeball said:

And you do? Do tell then.

Why? I’d have a better discussion with a brick wall. 

[eyeball]

2 minutes ago, User said:

Why? I’d have a better discussion with a brick wall. 

That's about your speed alright.