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A wealth tax is not just another tax policy but a fundamental violation of private property rights, a cornerstone of American liberty. Once the government can seize post-tax assets, it establishes a precedent where all property is subject to seizure, creating a slippery slope toward tyranny and anarchy.
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Once a 'one-time' wealth tax is implemented to cover deficits, it removes pressure on politicians to manage finances responsibly. The tax becomes a recurring tool, and the definition of 'wealthy' inevitably expands as the original tax base leaves the jurisdiction.
The problem with a state-level asset tax is that wealthy individuals can simply move to another state. Proponents understand this, signaling that the ultimate goal is a federal asset tax. A national tax would be inescapable, as renouncing US citizenship comes with a prohibitive 45% exit tax on all assets.
When governments view successful citizens' wealth as their own rightful property, they become predatory. This mindset drives high-net-worth individuals to leave, as seen in 1970s Sweden and modern New York, ironically destroying the very tax base needed for social programs.
Wealth is accumulated from after-tax income. Taxing it again punishes saving and prevents the concentration of capital essential for funding high-risk, innovative projects that drive society forward. Most countries that try it abandon it.
Billionaire wealth is largely illiquid and tied to asset values. A large-scale wealth tax would force mass sales, crashing the market value of those assets. The money is only 'there' on paper until you try to actually collect it, at which point its value collapses.
The proposed tax on billionaires' assets isn't about the billionaires themselves, who hold a fraction of national wealth. The real goal is to establish the legal precedent for a private property tax. Once normalized, this mechanism can be extended to the middle class, where the vast majority of assets reside.
Unlike uniform property or income taxes, a wealth tax targeting a specific group (e.g., billionaires) is a non-uniform "demographic tax." This sets a precedent allowing government to seize any post-tax private property from any defined group, effectively making all private property public.
Proponents often describe wealth taxes as a "one-time" event to make them more palatable to voters. However, the true aim is not the initial revenue but establishing a permanent legal precedent for the government to seize private property. The "one-time" language is a deliberate misdirection to cross a legal and political Rubicon.
David Friedberg argues the proposed billionaire tax isn't about targeting the wealthy, but about establishing a legal precedent for the government to audit and tax the private property of all citizens. The real target is the middle class's $170 trillion in assets, not the billionaires' $8 trillion.
A proposed wealth tax in California sets a new precedent by targeting assets that have already been taxed as income. This fundamentally shifts taxation from income to private property, granting the government the right to assess and claim a portion of citizens' belongings, which undermines a core principle of the U.S. economic system.
