Billionaire Tax is Wrong, Unfair and Counter-Productive

Overtaxing the wealthy reduces capital formation, slows economic growth and is simply not fair.

President Biden has just released his proposal for the Federal government’s budget for fiscal year 2023. In spite of an overheated, highly inflationary economy, Biden proposes a budget with a more than $1 trillion deficit and calls for a wealth tax on the very wealthy. That tax is a terrible idea.

It is obvious that the federal government has a severe deficit spending problem. In the last 59 years, the federal budget has had a deficit in 55 of those years. Since there is no program in place to ever pay back the bonds that are sold to finance the deficit, the public debt keeps growing and now exceeds $31.5 trillion.

$1 Trillion in Interest a Year

The annual interest expense is about $400 billion this year. Most of the current debt carries an interest rate of 1% to 1.5%. Once the debt is rolled over at higher interest rates, the annual interest expense will more than double. As more debt is incurred, the interest expense will reach an unsustainable level, approaching $1 trillion annually.

The way to reduce the deficit and hold the line on the public debt is to decrease government spending. The President disagrees. In fact, he wants to spend trillions more…