As the Democratic fashion completion continues for the presidential nomination, Senators Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont have both proposed wealth taxes that would shrink the fortunes of the richest Americans. Their plans envision an enormous transfer of money from the wealthy to the federal government for caretaking.
It is imagined that some of these funds from the wealth tax would be used to finance new social programs like tuition-free college, universal child care and “Medicare for all.” But with typical government efficiency most of the funds would most likely get squandered and the planned programs will be underfunded.
These wealth taxes are based on what you own, and not what you make. They are punitive in nature and I suspect that there would be room for interpretation on wealth. Are homes included? If so who decides the value? I know I am not pleased with the Cook County Assessor’s valuations. I would not want to have to pay a wealth tax on top of the property taxes that are already collected.
Some deem the proposed taxes as a punishment; while others as a saving grace for the country. It will be interesting to see how it plays out.