Biden’s wealth tax that would be unfair and counter-productive

Taxing wealth, which has already been taxed, will lead to the same stagnation the economy experienced from 2008 to 2016.

Many politicians, all of them Democrats, are proposing taxes on wealth, especially for those who are very wealthy. Last year Elizabeth Warren (D, MA) proposed a wealth tax that was generally not well received. This year, more Democrats are calling for a wealth tax. Is this a good idea?

In California, Democrat Rob Bonta proposed a wealth tax on Californians. The tax would be paid annually and even due for ten years after a taxpayer left the state. Democrats note that income inequality is increasing and taxing the wealthy would be a way to reduce that inequality.

Some Dems want to raise income tax rates and want a wealth tax.

Others like Alexandria Ocasio-Cortez (AOC) want to raise the maximum income tax rate to 70%. This too, she argues, would reduce income inequality. And she wants New York Governor Andrew Cuomo to impose a wealth tax on all New Yorkers who have a net worth of $1 billion or more.

The reality is that these proposals are not only counterproductive, but they would increase, not reduce, income inequality.