Senator Elizabeth Warren of Massachusetts, a declared candidate for President, has proposed a wealth tax on multimillionaires and billionaires, and has caused a ruckus, including that of two potential Presidential candidates, who are billionaires.
Former Starbucks CEO Howard Schultz, who has indicated he plans an independent candidacy, is outraged, as is Michael Bloomberg, former NYC Mayor, who plans to announce as a Democrat for President.
Both want to only give support through generous donations, but are opposed to being forced to pay a high level of taxes.
But their protest is preposterous, as they could never spend or utilize all of their fortune, and they seem unwilling to take the view that their success requires them to pay a small percentage in taxes.
What does Warren propose, after massive tax cuts for the wealthy under Ronald Reagan, George W. Bush, and Donald Trump?
Those who have assets of $50 million or more would pay 2 percent annually, which is only $1 million, and easily made up in interest.
Those who have assets of $1 billion or more would pay 3 percent, or a minimum of $30 million, which is a “drop in the bucket” if you have a billion dollar fortune, and also easily made up in interest over the next year.
A wealthy person never really loses his assets as the interest is always more than two or three percent.
Only a small less than one percent of taxpayers would face this tax, but it would raise a lot of money to deal with social and economic matters that affect a population becoming poorer and the middle class dwindling.
For these and other wealthy people to complain about this small percentage of their wealth being taxed, is totally preposterous and outrageous.