A 2% tax on America’s 75,000 wealthiest families would raise $2.75 trillion over the next decade.
This is at the heart of Democratic presidential candidate Elizabeth Warren’s economic plan to reduce the enormous wealth gap between the top .1% and to raise federal revenues. The families that would eligible for this wealth tax would be those with over $50 million in assets. Families with over a billion dollars in assets would pay 3%.
E-War is not mincing around the discussion – she wants redistribution of wealth and believes that we’ve given the free market enough of a chance to “correct” the imbalances, and now it’s time for government intervention. This is obviously a polarizing subject among everyone else who makes up the 99.9% that would NOT be subject to the wealth tax, because ideologically they either believe or don’t believe that the government can better allocate these resources.
Upper middle class earners would be asking themselves “Where does it end? When do they come for my wealth? Why are they punishing success?” The rest of the middle class will be reminded of the “slippery slope” towards socialism and eventually full blown communism. Americans don’t like the idea of there being a ceiling over their heads, regardless of how far away from that ceiling they might currently reside.
According to the Federal Reserve Board’s Survey of Consumer Finances, the top 5% of American households have 2/3rds of the country’s wealth. The bottom 60% have only 2% of all net worth. Very few people would seriously argue that this isn’t a problem, even