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Democratic Tax Proposals That Will Seriously Hurt Everyone

Sorry for those of you uncomfortable with differing political (any any subject) ideas, but political ideas, especially bad ones, can hurt your finances. So this post belongs here, not on the "Politics" tab. Unless of course, you're in the 44 percent of who don't pay any taxes.  Remember, the top 3 percent pay the majority of taxes in the country, but they "don't pay their far share" whatever "fair" is...

Elizabeth Warren: 3 percent wealth tax. Problem is, most of those individuals would have to sell assets to pay for this. This is not an income tax, but an asset tax. For example, if my assets are tied into my farm, I'd be paying taxes. 

Democratic Senator Wyden of Oregon (who?): proposes to tax capital gains at 37% as the value of an individual’s assets grows rather than when they are sold. Modest problem: Same issues as above, only worse. Example: If I have $10,000 in unrealized gains, I'd have to pay a tax of $3,700, even if I didn't sell the stock(s). 

Alexandria Ocasio-Cortez proposes a 70% federal income tax. Modest Problem: With state taxes, that would put an individual tax rate at 83% for wealthy high-rate state taxpayers. All this would do is stop investment and therefore crush the stock market and employment. Ask her constituents about Amazon.

Democratic California State Senator Scott Wiener proposes that California enact an estate tax on estates for individuals with net assets of between $3.5 and $11.2 million. Modest problem: Dad will be moving to Nevada, so California will not only miss out on any estate tax, the income taxes between the move and death will also be lost.

This is just a beginning. There are and will be more ideas on how to take your money among the infinite field of candidates. 

Between these four or five Democratic lawmakers, there is virtually no business experience. There is no understanding of either the relationships of liquidity to wealth, economic causation, or in the case of Scott Wiener that millions of retirement age Californians would rather leave California than pay $1 million in California taxes for the privilege of dying in California. 

But hey, as long as they promise "free" stuff, why not? 

EXCEPT ME, WHO HAS WORKED SINCE I WAS 15 YEARS OLD. I GET TO PAY FOR IT. 

Full story at TownHall Finance.

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