It’s no surprise to anyone that has been paying attention that Democrat Presidential candidate Spreading Bull Warren is proposing a wealth tax to pay for her massive spending proposals, not least of which is “Medicare for All.” While her proposals suck for a number of reasons, this one is perhaps one of the worst. Let’s look at the reasons why.
Let’s forget legal aspects for a moment and look at the practical aspects of this proposal to confiscate the wealth of successful Americans by force.
By her own words, she claims that her proposal would only affect either “billionaires” or “the top 1%,” depending on which day you listen to her. But these people are the same people who are best equipped, best prepared and most able to evade just such a tax; the inevitable result of this plan would yield only a massive capital flight from our shores, and a resulting catastrophic crash of our financial markets. Less wealthy Americans, less able to flee the new taxation scheme, would see their retirement accounts evaporate. Businesses would suffer; layoffs and business closings would follow.
And bear in mind that her proposal isn’t a one time thing. It would tax the assets of every American that meets the criteria, every year. And her claim of 2%? Well, that’s how the income tax started, too. How long do you suppose the wealth tax would stay at 2%?
At best, we could expect a prolonged recession that would make the 2008-2009 “Great Recession” look like a blip. At worst, we could see a prolonged Depression, quite possibly worse than the 1928-1938 Depression, very likely the worst downturn in our nation’s history.
But there are stronger arguments against Princess Spreading Bull’s plan, and those are found in the Constitution.
Article One, Section Nine of the U.S. Constitution, Limits on Congress, contains the following unambiguous statement:
No capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.
What does this mean? Simply this: Congress can levy no direct tax unless that tax is levied in proportion to the population of the several States. In other words, if California contains 12% of the nation’s population, then California must supply 12% of any direct tax. If Alaska contains 2%, then the residents of Alaska are only responsible for 2% of the total. Now it’s pretty apparent to anyone who’s been paying attention that a few states, like New York and California, contain a proportion of wealth far higher than their percentage of the nation’s total population; other states, like Alaska and Arkansas, rather less so.
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
Note that final clause; a specific exemption was stated to allow the current income tax to be collected without regard to “…any census or enumeration.”
Liawatha Warren’s wealth tax, in which she proposes to confiscate the wealth of many successful Americans, a tax which would wreck our economy and lay a heavy levy on wealth generated with post tax dollars – thus representing double taxation – would require a Constitutional amendment, one which has rather less chances of ratification than would an amendment denying the vote to all persons with red hair and blue eyes.
Liawatha Warren is perhaps one of the most dangerous politicians to ever seek the office of the President. Her proposals would destroy the Constitution, would result in economic ruin, and would drive wealth out of the country. Fortunately, while she seems to be in a good position to gain the Democratic nomination, her odds thereafter are not good; if for no other reason, her Medicare-for-All plan would strip the generous, union-negotiated health care plans of millions of blue-collar and middle-class Americans. If the Democrats lose the labor unions, they lose the election, and this plan guarantees that loss. Add to that the fact that her proposals would prove wildly unpopular to all Americans other than the far left, and her nomination is little more than a gift to the Trump re-election campaign.
But still, it’s important to examine her policy plans, and spread the word on why and how they would result in disaster. Let’s hope most Americans are paying attention.