Policies that pump financial markets disproportionately benefit asset holders, widening the wealth gap and fueling social angst. As a result, the mega-cap tech companies symbolizing this inequality are becoming prime targets for populist politicians seeking to channel public anger for electoral gain.

The wealth tax initiative is drafted to be highly punitive by including large Roth IRAs and negating the benefits of complex trust structures typically used for tax avoidance. This makes it extremely difficult for wealthy individuals to escape its reach if passed.

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.

Congressman Ro Khanna proposes a tax on the total net worth of individuals with over $100 million. Unlike an income or capital gains tax, this targets unrealized wealth, forcing the liquidation of assets like stocks to generate the cash needed to pay the tax.

A savvy political strategy involves forcing opponents to publicly address the most extreme statements from their ideological allies. This creates an impossible purity test. No answer is good enough for the fringe, and any attempt to placate them alienates the mainstream, effectively creating a schism that benefits the opposing party.

A proposed wealth tax in California triggered a significant flight of capital and high-net-worth individuals, even without becoming law. The key factor was the failure of politicians to uniformly condemn the proposal, which was perceived as a threat to fundamental property rights, signaling a hostile business climate.

A cross-cultural study shows that people are more likely to vote for a policy that hurts the rich, even if it also makes the poor's lives worse. This suggests that resentment toward the wealthy can be a stronger motivator in political decision-making than the desire to improve conditions for the poor.

Cross-cultural studies show a surprising voter motivation: punishing the wealthy is often a higher priority than improving conditions for the poor. People will support policies that harm everyone, including themselves, as long as they disproportionately harm the rich, revealing that envy can override self-interest.

The primary psychological driver behind socialist policies isn't altruism for the poor but a desire to penalize the wealthy. Understanding this distinction is key to predicting their political actions, as they will oppose policies that benefit everyone if they also benefit the rich.