Comment Re:If the asset tax passes, he'll owe 1.5B (Score 1) 93
You're not thinking past first order effects of "rich people become less rich and we get subsidized". What that means on 2nd+ order effects is:
- Wealthy people/businesses do not have the capital to start or expand businesses
- Investors do not have the money to invest and grow businesses
- Businesses shrink and optimize for the new cost structure (no assets)
- Businesses stagnate and become slower as they have larger and larger pools of "owners" and subsidiaries to work around the problem
- Businesses stop producing things, because producing things requires investment and capital - assets.
The worst part: the practice of taxing assets is recursive. In theory, it will continue until everyone has the same exact asset stake. In practicable reality, a select few (which may be the same group of people we have now, or a different powered elite in government) will monopolize and loophole the process and we'll have a universally poor populace with ruling elites (far worse than it is now - and yes, I'm admitting it's a problem today).
Big things are only possible with big money. If living at sharecropper subsistence levels is your objective, where everyone has equal financial means but never enough for enterprise - by all means, insist on redistribution.
This is exactly what was done to the Russian Cossack sharecroppers in Soviet Russia, by the way. It's just communism. Stop pushing failed ideas.