Popular phrases exist for a reason.
The rise of socialism in America is undeniable. Some of their demands are downright frightening.
Unfortunately, the comrades demanding the looting of the rich are lacking any foresight.
They’re probably ignorant of the history of taxation in America. But let’s be real, they’re all too happy to ignore it even if it was presented to them.
Millions across the country are eagerly demanding for a wealth tax to be imposed on “the rich.” Who knows what the arbitrary cut-off point will be – presumably billionaires and those worth hundreds of millions.
A wealth tax is based on total assets owned, not just income received in a given year. Suppose that a sufficiently rich guy owns a fancy painting. He will have to pay a tax on its value to enjoy glancing at it as he strolls down the hallways of his mansion.
“Good! Stick it to him!” they’ll say as they cheer in delight.
What a shame it will be when the wealth tax boomerangs and strikes their ancestors.
In 1869, a flat tax of 5% was applied to all income above $1,000.79. Just one year later the tax was only applied to income above $2,000.80. Historian Robert Stanley claims that the tax only applied to the richest 0.2% of Americans.
When the 16th amendment was passed in 1913, only 0.4% of citizens paid the 1% tax. By 1932, 3.1% of citizens paid a 4% tax.
Today, someone that scrubs toilets and sweeps floors can pay a higher tax rate than what the rich once paid.
The taxation creep never stopped.
Why?
People kept demanding more and more goods and services from the government.
Do you see any signs of that trend reversing in the near future?
But history be damned. “It will be different this time” they’ll surely claim. “The wealth tax is reserved for billionaires and those worth hundreds of millions. It says so right in the law!”
Perhaps… for a couple years at least. But it doesn’t matter how few people pay the wealth tax at the beginning.
Why?
Because once it is passed the jig is up. Game over. Mission accomplished. The government now has even more authority over you… yes, YOU.
Whatever the rich will pay under a wealth tax will not be enough. People will just continue demanding more things from the government.
A tax that originally targeted “the rich” will impact everybody that isn’t living under a bridge.
You don’t need a crystal ball to see this coming. Those demanding the wealth tax are too clouded with envy.
But that’s OK, fear is a great way to clear that right up. The people cheering the tax would already wet their pants if the IRS decided to audit them.
Just wait until they have to file an exhaustive report of their personal holdings: jewelry, memorabilia, antiques, firearms, automobiles, electronics, collectibles, stocks, bonds, etc.
Are you a sneaker-head? Guess what… those $2,000 pair of kicks will need to be reported on your tax return.
Best part of all, they’ll have to depend on the government’s assessment of their value. I’m sure the suits are the IRS are totally up to date on the hottest trends on footwear. Good luck arguing with the IRS about “fair market value” – what they say goes.
Nobody wants the IRS sniffing around their bank account and financial transactions. Just wait until it has the authority to start ransacking your place looking for unclaimed wealth.
Sure, there will be a de minimis exemption amount. But it will be steadily lowered as the years go on.
Better have proof of how you acquired something and when.
I suspect there will be a sweeping phenomenon of people “finding” wealth on the sidewalk… you know, yesterday and totally not a year ago.