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Always a fun read, GR’s wealth tax proposal. Haven’t yet heard either Biden or Trump embrace it, hopefully it’s around the corner.
https://genuinerealist.substack.com/p/introducing-the-net-wealth-tax
You’d figure some serious Dem politician would embrace it. Both Repubs and Dems would vote for it.
Audaces fortuna iuvat
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Wealth Taxes are Direct Taxes that are Subject to the Rule of Apportionment
The last two sentences indicate why it would be such a popular and appealing tax to government:
“There is an appealing element of voluntariness in indirect taxes, which is that one can always avoid the tax by not engaging in the taxed transaction. Such voluntariness is absent when direct taxes are imposed.”
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Mick,
Thanks for the kind words.
The proposal has nothing in common with the fashionable idea of a wealth surtax, which is a non-starter for so many reasons – actually, just a political ploy by Elizabeth Warren and Joe Biden,
I wouldn't give you two cents for all your fancy rules if, behind them, they didn't have a little bit of plain, ordinary, everyday kindness - yeah, and a little looking out for the other fella, too.
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In Moore vs. United States on Thursday, five of the Justices opened the door to a wealth tax.
Congress has created a mandatory repatriation tax (MRT). In 2017 tax reform, shareholders of American-controlled foreign corporations were required to pay a retained earnings tax in proportion to their ownership stake. The Moores were hit with a $14,279 tax bill ,though they derived no income.
The Moores argued that the 16th amendment didn’t authorize Congress to tax unrealized sums. Instead of finding for the Moores, five of the justices ducked the question and ruled that the MRT was constitutional (Roberts., Kavanaugh, Sotomayor, Jackson, Kagan)
In short, the opinion leaves the door open to taxing asset appreciation, including unrealized capital gains. Coney (who wrote the dissenting opinion), Thomas, Gorsuch and Alito expressly didn’t think so, but five justices did. BTW, the Ninth Circuit court stated that “realization of income is not a constitutional requirement (for taxation authorization)”, which the USSC majority opinion stated was erroneous.
Kavanaugh did warn that the due process clause proscribes arbitrary attribution of undistributed income to shareholders and wrote that his opinion doesn’t expressly authorize Congress to tax both an entity and shareholders.
Fine. But Progressives just had the wealth door opened.
Thoughts, GR?
Just in case you don’t have anything to do today, here’s the 83 page USSC opinion:
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An French economist, Gabriel Zucman, has proposed a global tax on billionaires’ assets, starting at 2%.
There are 2,781 billionaires in the world. 813 in the USA, 473 in China and Hong Kong, 200 in India, 132 in Germany, 120 in
USSRRussia. Here’s the list. Let’s tax them all:List of countries by number of billionaires – Wikipedia
Janet Yellen says the U. S. won’t support it.
Biden has proposed a minimum income tax on all individual with more than $100 mms. in wealth. Biden’s tax would amount to a 2.8% minimum, as applied.
Three guesses as to which American university hosts Dr. Zucman. Hint: it is slightly West of Stanford.
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And speaking of the French, the newly elected Far Left proposes to bring back the “impôt de solidarité sur la fortune” or wealth taxes:
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