Economics is the efficient use of scarce resources by people doing useful things for one another. Smart economics are not illustrated in Senator Warren’s “Ultra-Millionaire Tax” plan, deceptively represented as two-cents-from $50 million dollar fortunes. The plan is dishonest!
Senator Warren says “Our tax code focuses on taxing income, but a family’s wealth is also an important measure of how much it has benefited from the economy and its ability to pay taxes. That’s why we need a tax on wealth”, She states, obviously not a Constitutional scholar.
Article 1, Section 9, Constitutionally forbids Warrens tax stating “No capitation, or other direct tax shall be laid unless in Proportion to the Census or Enumeration herein”. Warren’s direct tax must be proportional to state population. Warrens tax impacts rich states disproportionately against those with lesser populations plus advocating double taxation.
Warren and Democrats preach the rich don’t pay a fair share. The 2016 Tax Foundation Report on federal income tax paid doesn’t support that position: the “top 1 percent paid 37.3 percent share of individual income taxes whereas the bottom 90 percent combined paid 30.5 percent. In actuality, the “top 1 percent’s 26.9 percent individual income tax rate far exceeds the bottom 50 percent rate of 3.7 percent.
Middle-class economic engines will be included. In 2015 U.S. Supreme Court in Maryland v. Wynne stated double taxation violates the federal Constitution. Hence the reason Warren targets Corporations and stockholders. The federal government already confiscates productive, responsible, hardworking U.S. citizens wealth; greedy Warren want more!
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“Included in the net worth [tax] calculation, which will produce more revenue and reduce opportunities for avoidance and evasion” is asset reporting. Thus the $50 million net worth households report all their assets…cars, houses, watches, rings, boats, etc., - things taxed already!
Warren foolishly ignores wealthy people easily avoid paying ridiculous taxation through Congressionally created tax exemptions, i.e. foreign banks, purchase tax exempt farmland, charitable donations, S-type corporations, long term investments, etc. The Internal Revenue Service could not staff to enforce this noxious taxation system without huge expenditures. Implementation will be a nightmare.