Warren's tax plan in one sentence: 3% wealth tax per year for >$1B and 2% for >$50M. Why it is worst thing that could take US to deep shit: Let's take the example of Bill Gates. Bill Gates is worth $100 Billion, but that’s almost entirely in stock. Under the Warren proposal, he would suddenly owe over $6 Billion in taxes. In Scenario 1, he simply signs over $6 Billion worth of Microsoft stock to the federal government, and other billionaires do the same thing with their stocks, and the government is suddenly a major player in many large firms. That’s not good. Imagine the government owning millions of shares of major companies and meddling as activist investors (as you know they would). In Scenario 2, he has to sell enough stock to raise $6 Billion in cash. When this happens, it represents as much capital flowing out of Microsoft as they normally see bought and sold over several days. With this much added supply to the equation of available stock, the price would go down, which would mean he would have to sell even more shares to get the cash he needs, which would drive the price down even further. He started out with a net worth of $106 Billion, he tried to pay his $6.1 Billion tax bill, and the stock price drops 10% because the market is flooded. He now has to sell more shares and the shares he has left are worth less, so the wealth tax of “only 6%” has suddenly dropped his net worth from $106 Billion to $85 Billion. Now, imagine these scenarios playing out over 700 times as there are more than 700 billionaires in the U.S. who would lose a significant chunk of their assets. That’s a recipe for a depression. But wait, it gets even better! Now we look at the fact that many of those people with >50M net worth own one single company that is worth like a $100M or so (imagine a sports franchise). Suddenly they are hit with a tax bill in the millions of dollars for which they have no readily available cash. They can’t sell their asset, because there’s not a huge demand and there are strict rules regarding the transfers of assets like that (and the folks who can afford to buy those assets are pretty strapped for cash themselves). What happens with these folks? Layoffs, pay cuts for employees, and bankruptcy. Woo Hoo! Ultimately, all of these things would depress stock prices, and impact the common investors (as well as mutual funds, 401(k) plans, and pension funds). This might be one of the worst economic ideas in the history of the U.S. Source: Scott Biddle Link: https://www.quora.com/Considering-most-billionaires-only-keep-a-fraction-of-their-net-worth-in-cash-how-would-they-go-about-converting-their-assets-into-cash-to-pay-a-wealth-tax/answer/Scott-Biddle-4 Why would anyone vote for such shit?
This is the most biased question I have seen in the polls. There are millions of ways in which the money can be collected without the problems that you described.
Consider I am a guy with $100M net worth all in a startup that I am the founder of. The startup is valued at $250M generating a reveneue just above $10M (all in loss anyway). My tax bill comes in at $2M, how the F could I be able to pay it??? That too every year!!!
Maybe a solution could be not put every dollar you have into investing? If I put all my regular income into a house I can’t really complain about not being able to pay for yearly property taxes. Especially since it’s you know, yearly.
Wealth tax is just double taxation. Fix the issues with the initial tax first.
Sorry if I don’t have much sympathy for the “rich football owners can’t liquidate their teams poor them” argument More publicly owned teams like the Packers would be a good thing anyway
Wonder what happens when you liquidate stocks? Wonder what happens when stock values crash because of selling of stocks Wonder what happens when .... I am a farmer with acres of land worth millions. I barely break even. So I should...... Yeah this is fucking dumb
Ah, the source of truth ... Quora.
You are missing second part. Employees would have 40% vote by Warren. If you combine it with necessity to sell 3% of founder's stock/year, it means end of private property. Fuck Bill Gates, the problem is 1) If I want to start a new startup I should first renounce my US citizenship. 2) VC would demand that as well as doing it outside US, noone would invest in founders who would loose control.
Yup that's what I said in my previous comment.
Oh wait, she also wants tax unrealized gains. Hello to all unicorn employees.
Once Warren loses the primaries the dems are going have this hanging around their necks in the general election. This is the best free advertising for Trump since Beto.
ITT: Warren supporters choke on their own ignorance
Lol. I guess those 700 billionaires have a lot of boots that need licking.
Ben Shapiro actually broke down how this plan will not work. Take it as you will. 1. Example of France in 1998-2006: [wealth tax] generated $2.6BB per year while costing $126BB in capital flight every year. 2. Top 1% already pays 40% of total taxes. 3. 1% of GDP drop will eliminate all gains from the proposed wealth tax. And "incentivising" billionaires to leave US will have a massive impact on the economy. Finally, this is not constitutional. Also this is not even a tax, but wealth redistribution.
*Slurp*
With 2% wealth tax it will take 25yrs for the state (not people) to own 50% of all companies. Pure socialism in just one generation.
Lol. You mean nationalization.
Same shit, different packaging. Nationalize everything to find socialism, just like Venezuela.
Tech Industry
4h
638
Googlers are spoiled
Tech Industry
Yesterday
27265
Goog Employees Arrested
Layoffs
Yesterday
30874
Google CFO confirms "large-scale" layoffs today (Apr 17)
Software Engineering Career
Yesterday
3761
28 terrorist worshipping idiots just got themselves fired and I've never been prouder to work at Google.
Tech Industry
10h
1902
Go woke, go broke: Google fires 28 employees involved in pro-Hamas protest
That sounds like a restated trickle down argument