1. Warren's Wealth Tax Brainfart
If wealth tax is such a hot idea, how come it failed in almost every European country that tried it, including Sweden. They had to scrap it to save their economies. But you go right ahead and spew your nonsense on the unsuspecting.
If wealth tax is such a hot idea, how come it failed in almost every European country that tried it, including Sweden. They had to scrap it to save their economies. But you go right ahead and spew your nonsense on the unsuspecting.
2. First of all, federal wealth tax is unconstitutional in the U.S. I wrote this thread the day Elizabeth Warren came out with her nonsensical wealth tax proposal.
3. But let us assume Elizabeth Warren is forced to admit the unconstitutionality of her scheme and then decides to push for a constitutional amendment. That would at least be honest, but it would still be a terrible idea, because it is a royal stinker regardless.
4. In 2004, Institut de l'enterprise investigated why several European countries were eliminating wealth taxes. They found that wealth taxes:
1. Contributed to capital drain.
2. Had high management cost and relatively low returns.
3. Distorted resource allocation.
1. Contributed to capital drain.
2. Had high management cost and relatively low returns.
3. Distorted resource allocation.
5. Even the most oppressive tax regimes in Europe (like Sweden and Denmark, where the top tax bracket is 63% and capital gains are taxed at 43%) have abandoned the wealth tax.
6. As a matter of fact, nine countries in Europe abandoned the tax. Why? Because people were leaving in droves to avoid paying the oppressive levy.
7. In France, 513 wealthy households on average left the country every year for 35 years because they were tired of paying a wealth tax – taking an estimated $175 billion of assets with them.
8. But when the wealthy leave, they take more than their money… they also stop investing and creating jobs.
So France also lost 400,000 jobs (adding 2% to unemployment).
So France also lost 400,000 jobs (adding 2% to unemployment).
9. Even worse, Sweden raised $500 million with their wealth tax, but lost $166 billion from capital leaving the country.
The wealth tax simply does not work. In fact, it hurts any country that imposes one, because rich people are the most mobile.
The wealth tax simply does not work. In fact, it hurts any country that imposes one, because rich people are the most mobile.
10. The Federal Constitutional Court of Germany found that wealth taxes "would need to be confiscatory in order to bring about any real redistribution. Either it is ineffective in fighting inequalities, or it is confiscatory – and therefore the Germans chose to eliminate it."
11. So there you have it. Elizabeth Warren is pinning her hopes of becoming the President of the United States on airy-fairy tax schemes that even socialist leaning regimes in Europe have tried and abandoned as ineffective and unworkable.
The End
The End
