Memo – Analysis of Elizabeth Warren’s Wealth Tax

Like many Democrats, Elizabeth Warren openly espouses raising taxes on the rich.

You will hear them say that the Rich don’t pay their fair share. Let’s think about it though, nobody ever defines what a “share” is, so how do we know if it is fair?

Well I finally did the analysis and scientifically calculated a share.

Please click this link to listen to my Podcast – Do The “Rich” Pay Their Fair Share Of Taxes?

You will fully understand what a “Fair Share” is when it is done. Then you can decide based on facts.

But that is not what this memo is about.

This memo will analyze Elizabeth Warren’s proposed Wealth Tax.

But I must digress one more time before getting to that, to show you the faulty logic that leads to Elizabeth Warren believing her Wealth Tax is fair and just.

So again, like all Democrats, Elizabeth Warren continually says that the wealthy should pay more taxes. One major mistake she made is when she said:

“Rich” people have used infrastructure such as roads, and other government services to build their wealth over time, and so they should pay something back.

This is fallacious thinking. As these so-called rich taxpayers were building their wealth, and using those roads and services, they were being heavily taxed on their income and so they have already paid their fair share, and many times much more than their fair share. The rich have no further balance due from times they built their wealth and paid very high taxes.

Instituting taxes under this premise would be double taxation, as the taxpayers have already paid for what she is claiming was not.

Now onto a very similar instance of Elizabeth Warren’s very faulty thinking, and the true topic of this memo.

Elizabeth Warren’s Wealth Tax would tax the value of assets on certain taxpayers at a rate of 2%.

Remember, the democrats want to institute programs that will surely bankrupt the country, so they are searching for money they can appropriate where the masses won’t complain about it. The “Rich” are always a good target.

Here is a quick example of this Wealth Tax. Let’s say the limit is set to $50Million in assets. The taxpayer would owe $1Million in taxes. $50Million X 2%.

This is not only double taxation, I believe it is theft.

Now, what Elizabeth Warren tries to do, is compare real estate taxes paid on your home with these proposed Wealth Taxes. This is extremely disingenuous and they are NOT the same thing. This is a set up to make you equate the two things. They are not the same and here is why.

Real Estate taxes are paid to a township or county, for the payment of direct services you enjoy directly and locally. If you didn’t get any services, such as police and fire protection, you would not be paying any real estate taxes. Again, there is a clear and direct link between what services you are paying for with real estate taxes and rarely any such link with any form of state or federal income tax.

A Wealth Tax is a redistribution of U.S. citizens wealth to complete strangers in the form of government services. The wealthy will gain zero direct benefits as they don’t qualify for the government programs that their Wealth Taxes will pay.

Technically all taxes are a redistribution of wealth.

So the Wealth Tax and real estate taxes are not similar in any way.

I will leave you with a definition of taxes which I came up with long ago.

Like most taxes, this Wealth Tax would be more “coerced charity.”

If anyone ever uses that term, remember, I created it!

What do I mean by this?

Let’s define charity: The voluntary giving of help, typically in the form of money, to those in need. There is no expectation of being repaid. We usually have no control what the recipient of our charity uses our money for.

Let’s define taxation: The Coerced or Involuntary giving of money, to those in need. There is no expectation of being repaid. We NEVER have control what the recipient of our coerced charity uses our money for.

Taxation is therefore Coerced Charity because we could be financially penalized or incarcerated if we don’t give our money to strangers against our will, who are never obligated to pay us back.

Questions? Concerns? Call me on (732) 673-0510.

Please reach out to me without hesitation with any tax, business or

accounting question, and to schedule a consultation.

Tax Laws are complex.

It is very easy to make mistakes that can incur penalties.

Do you have a Tax, Accounting or Business Question?

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Remember,

“If We Aren’t Working For You, Then You Aren’t Working At Your Best”

Chris Whalen, CPA
(732) 673-0510
81 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com

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