“For the richest Americans, Democrats want to shift toward taxing their wealth, instead of just their salaries and the income their assets generate. The personal income tax indirectly touches wealth, but only when assets are sold and become income.”
So reads an article published in the WSJ.
“Democrats are eager to tap that mountain of wealth to finance priorities such as expanding health-insurance coverage, combating climate change and aiding low-income households.”
Although I am concerned about the growing income inequality, acknowledged by Richard Rubin, the author of the article, I believe that the gap cannot be closed by big government programs and taxing the rich. Therefore, I agree with the view that:
“… taxes targeted at the rich could hinder investment in ways that would hurt everyone’s wages and discourage the creation of wealth in the first place.”
Not to mention that “New taxes on wealth would complicate tax administration and bring unknown economic consequences.”
When Democrats object that the tax rate, although progressive, favors the wealthy, my reply is: who generates the wealth that keeps our economy churning? Furthermore, who pays the lion’s share of the taxes: the wealthy.
I want an America where everybody, not just the wealthy, benefits; and who would deny that under this economy everybody is benefitting? Well, the liberal left.