This article was originally published by Michael Snyder at The Economic Collapse
Elizabeth Warren is making it exceedingly clear that she is a socialist, and that is quite frightening considering the fact that she could potentially become our next president. Unless some really big name unexpectedly enters the race, there is a decent chance that Elizabeth Warren could win the Democratic nomination in 2020. And if she ultimately won the general election, the Democrats would likely have control of both the House and the Senate during her first two years in the White House as well. So that means that the proposal that you are about to read about could actually become law in the not too distant future.
After AOC’s proposal to raise the top marginal tax rate to 70 percent received so much favorable attention, it was just a matter of time before Democratic presidential candidates started jumping on the “soak the rich” bandwagon, and the first one to strike was Elizabeth Warren.
When she announced her new proposal on Twitter, she dubbed it the “Ultra-Millionaire Tax”…
We need structural change. That’s why I’m proposing something brand new – an annual tax on the wealth of the richest Americans. I’m calling it the “Ultra-Millionaire Tax” & it applies to that tippy top 0.1% – those with a net worth of over $50M.
It would be bad enough if this was just a one-time tax on wealth.
But it isn’t.
Please note the use of the word “annual” in Warren’s tweet. That means that the rich would keep getting hit with this tax year after year after year.
Those with more than 50 million dollars in assets would pay a 2 percent tax each year, and those with more than a billion dollars in assets would pay 3 percent each year…
The Post reported that Warren has been advised by Saez and Gabriel Zucman, left-leaning economists affiliated with the University of California, Berkeley, on a deal that would levy a 2 percent wealth tax on Americans with $50 million-plus in assets. For Americans with assets above $1 billion, that tax rate would increase to 3 percent.
The newspaper, citing a person familiar with the plan, reported that Warren’s plan would try to counter tax evasion by boosting funding for the IRS, and by levying a one-time tax penalty on people with more than $50 million who try to renounce their U.S. citizenship. It would also require that a certain number of people who pay the wealth tax be subject to annual audits, the Post reported.
3 percent may not sound like a lot to many of you. But over the course of a couple of decades many families could have their fortunes almost completely wiped out by this wealth confiscation tax.
According to economist Emmanuel Saez, this new tax would be imposed upon approximately 75,000 families and would raise 2.75 trillion dollars over 10 years.
Clearly this is a move by Warren to appeal to the progressive wing of the Democratic Party. I really like how Zero Hedge made this point…
Elizabeth Warren has never been a friend to the wealthy. But in the age of Bernie Sanders and Alexandria Ocasio-Cortez, merely advocating for “holding the rich accountable” simply doesn’t penetrate like it did back in 2008. And that’s because, on the left flank of the Democratic Party, you’re not really a progressive unless you believe that the existence of billionaires is a policy error.
And surprisingly, there is actually a lot of public support for such a proposal. In fact, a recent Fox News poll found that Americans overwhelmingly support soaking the rich…
Voters support tax increases on families making over $10 million annually by a 46-point margin (70 percent favor-24 percent oppose), and support a hike on those making over $1 million by 36 points (65-29 percent).
There is less support for a broader tax increase: 44 percent favor raising rates on those with income over $250,000, and a small minority, 13 percent, approves of an increase on all Americans.
Of course so much depends on how a survey is worded. For example, I would be willing to bet that a survey would show that well over 50 percent of all Americans would back my proposal to abolish the income tax completely.
Over the coming months, Democratic presidential contenders are going to be continuously trying to one up each other with their promises to tax the rich and give out free stuff. By the end, someone out there may even be promising to give free rides to the Moon to everyone.
But if Elizabeth Warren really wants to be considered a serious contender, she needs to eliminate the ridiculous gaffes that have plagued her in the past. For instance, she recently claimed that we have “two co-equal branches of government”…
Freshman Rep. Alexandria Ocasio-Cortez, D-N.Y., already has declared that the government has “three chambers of Congress,” the House, the Senate and the presidency.
Now, Sen. Elizabeth Warren, D-Mass., has claimed on Twitter that the government has “two co-equal branches of government, the president of the United States and Congress.”
“The Notorious RBG (Supreme Court Justice Ruth Ginsburg) is gonna be ticked off that she’s been forgotten again,” said a post on the Twitter news-aggregating site Twitchy.
And there is certainly no excuse for such a gaffe, because she used to be a law professor.
In the end, it is difficult to understand why so many Americans seem to want to march down the road toward socialism. Because as President Trump has noted, Venezuela has shown us where that road leads…
“We’re looking at Venezuela, it’s a very sad situation,” Trump told reporters. “That was the richest state in all of that area, that’s a big beautiful area, and by far the richest — and now it’s one of the poorest places in the world. That’s what socialism gets you, when they want to raise your taxes to 70 percent.”
He added: “You know, it’s interesting, I’ve been watching our opponents — our future opponents talk about 70 percent. No. 1, they can’t do it for 70 percent, it’s got to be probably twice that number. But, maybe more importantly what happens is you really have to study what’s happened to Venezuela. It’s a very, very sad situation.”
Unfortunately, political proposals don’t have to actually make sense, and right now Elizabeth Warren is doing all that she can to win the progressive vote.
***
Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.
Michael T. Snyder is a graduate of the University of Florida law school and he worked as an attorney in the heart of Washington D.C. for a number of years.Today, Michael is best known for his work as the publisher of The Economic Collapse Blog and The American Dream.
If you want to know what is coming and what you can do to prepare, read his latest book [amazon text=Get Prepared Now!: Why A Great Crisis Is Coming & How You Can Survive It&asin=150522599X].
The Yellow Vests just started bank runs in France.
Mara,
It is all fake money so it doesn’t matter.
I beg to differ, Sir especially if it spreads. My guess it will spread in the EU by copycats supporting the Yellow Vests.
Expect a bank holiday.
There are multiple weird events going globally as if orchestrated and Disqus will not let me post it.
Be careful today.
htt ps://www.zerohedge.com/news/2019-01-25/russia-sends-security-contractors-venezuela-protect-maduro
ht tps://www.zerohedge.com/news/2019-01-25/shutdown-deal-reportedly-reached-trump-announcement-set-1pm
htt ps://www.zerohedge.com/news/2019-01-24/china-denies-reports-failing-trade-talks-while-threatening-pull-money-silicon
htt ps://www.zerohedge.com/news/2019-01-25/gold-surges-above-1300-dollar-dumps
Watch LaGuardia closely.
A few hours ago, Trump was going to declare a national emergency and use various sources of money to fund 9 billion toward the Wall and even threw an initial press conference. Then suddenly a deal was reached.
Something is up and likely due to Russian involvement with Maduro in Venezuela and even China made overtures. Russia wants a base there ih exchange for propping up Maduro.
There were rumblings about our forces in Columbia being sent in.
Then with the bank runs in France, it would have shaken the market severely. My guess is the Democrats are going to spin some DACA win albeit temporary.
Nonessential embassy personnel at the embassy at Caracas are being yanked and others told they better leave, which was comfirming that Columbia story.
Columbia has balked at the US military using bases located there in order to enter Venezuela. It’s inappropriate to say more.
htt ps://thehill.com/homenews/administration/426883-white-house-preparing-draft-for-trump-to-declare-a-national-emergency
My guess is the DNC blinked especially due to global events.
Macoroni could be in serious trouble with the yellow Vests if the bank runs spread, say to Spain and Germany. This Treaty of Aachen deal is likely unpopuar as it means a large military budget increase plus troops in France and Germany. That doesn’t help Merkel.
This is very peculiar because Pelosi was cancelling the session and sending everyone on a three day weekend, then the national emergency announcement, then Pelosi mocked it.
And then an abrupt unexpected about face. Something made her change her mind.
I wish that the President declared the Emergency sooner.
But I guess it was only fair to give the Democrats a chance.
BUILD THE WALL MR PRESIDENT !!!!
Mara,
Just like Greece.
Banks did not fail.
Fake money.
All people would be better off
if they all refused at the same time
to pay their income taxes.
htt ps://halturnerradioshow.com/index.php/en/news-page/world/bank-run-taking-place-in-france
It’s 6:06 pm in Paris right now. There should be some news updates.
You realize Hal Turner is an admitted government agent?
Ridiculous. Explain. He was jailed by government thugs.
He both admitted it at his trial and tried to use it as a part of his defense.
The main reason we never had an income tax in our original constitution and bill of rights is exactly this reason.
There are way more poor voters than rich ones, and the poor will tax the “rich” to destruction once they have figured it out that they can pass laws to tax.
That is why our middle class is being obliterated. The rich will have the resources to leave or avoid taxes and will remain rich.
Middle class is just being slowly ground to dust and the poor are still poor.
Full disclosure; I pay my taxes on or about April 15th every year.
I’m guessing fauxahantas is worth $49 million or less, so her tax has to start at $50 million. She must exempt herself and most of her rich Democrat cronies.
Her declared net worth is about ten million.
Maranatha;
How much time are you putting into this website? I don’t mean to be rude but you sometimes have 5 or 6 consecutive posts. Step back, have a cocktail, sit on the deck with your husband, or wife. and relax.
If Maranatha isn’t poster “BfromCa” they sure share a LOT in common..
Both enjoy posting consecutive posts,usually several paragraphs long..
I am trying to win souls for Jesus Christ. It’s none of your business how I send my free time. The majority of my.life has been spent winning souls for Christ. I have actually given up wages to do so.
No one in DC wants to end the income tax, Republicans or Democrats…the grifters would be out of a job.
“No. 1, they can’t do it for 70 percent, it’s got to be probably twice that number.” Sigh…maffs is hard.
ht tps://www.independent.co.uk/news/world/europe/highspeed-train-carrying-500-passengers-evacuated-in-frankfurt-a8746396.html
ht tps://www.nytimes.com/2019/01/25/nyregion/airports-shutdown-laguardia-faa.html
The Marxists came after the taxpayers with $50 million plus, and I didn’t object because I wasn’t worth nearly that much. Then they came after the taxpayers with $5 million, and I was silent because I wasn’t worth nearly that much. Then they came after the taxpayers with $1 million, and I was silent but nervous because I wasn’t worth nearly that much yet. Then they came after the taxpayers with $250k, and I was still silent but getting scared. Then they came after me because I was worth over $100k. And I realized then that my silence was a grave error, as there was no one left to speak out. Then they came after ME….The revolution was complete.!!!!!
This nut job wants everybody to stand in long lines for 100 rolls of toilet paper.
G,
This is a prepper site, ever heard of “Family cloths”?
Pool chlorine is your friend.
If you really want to mess with our government. IF everyone would raise their withholdings so as not to pay any federal income tax for the year. Not saying we would not pay it just not give it to them in each paycheck until the end of the tax filing season…we could literally shut down the government. Unfortunately we would never get a significant amount of tax payers to do this.
“Elizabeth Warren has never been a friend to the wealthy.”
Rather than exporting wealth to other, Communist countries, the wealthy just use govt charities as a tax shelter.
HMMM Paleface squaw needs her Wampum and wants her JP Wentworth now!
there would be no increase in tax revenue because the rich fold are very knowledgeable and will just move their money out of the country.
You nailed it. Similarly a major celebrity scandal in the UK involved tax shelters that funneled money out for precisely that reason.
There is NO “out of country.” The IRS taxes people globally. You can run but you cannot hide due to FATCA. Go to the IRS website and type in “expatriate” in the forms lookup box. You will find out you can throw Uncle Sugar’s passport in his face and become a citizen of another country, but you will STILL pay taxes to the People’s Republic of North America (PRNA, formerly known as the “United States of America”) for the rest of your life. EVIL.
Liz Warren can go f#$% herself. That “new-commie-on-the-block” Alexandria Ocasio-Cortez thinks all of us should give up 70% of our income in taxes. I’d be happy to put 100% of my foot in her stupid ass. She can also go f#$% herself.
If every one ends up getting haveing what every one else has thats fooked up cus then what?? You think millinials are entitled idiots now with no drive in life just watch lol… besides what happens when all that rich money is gone?? I know some will say it will just cycle back around but if your loosing most of what your earning why bother to have the drive to get more??? Frigging liberals are blind to the big picture of then what???
Gs said, “…millinials are entitled idiots now with no drive in life…”
Gs said, “…why bother to have the drive…”
You and the entitled Millennials are saying the same thing.
There used to be what was called the social contract or social bargain. “dignity of labor”
It is fair to have all expenses paid — living expenses and working expenses. That’s called the overhead.
Before there is any discussion of profit.
I’m all for it, as long as they take it away from you and give it to me and not the other way around.
FWIW. a “wealth tax” is not an excise tax, a tariff, or an income tax so what part of the Constitution authorizes it as a valid government taxation power?
She’s on the warpath and plans to scalp the rich!
I don’t believe Warren has a chance to be elected president. Not criminal enough like the parade of figurehead criminal losers who have occupied the White House since 1964, both parties. Clinton and Trump a wash regarding criminality. It’s clear as a slap in the face that this is a government not of the people but solely a self enrichment scam for greedy already wealthy criminals.
Let Lizzy start by paying 70% of her money….
That will never happen. They are hypocrites. They expect everyone else to obey, pay, and comply, but exempt themselves and think that is ok. They are absolutely mentally deranged.
If the politicos actually try this, it will be time for Atlas to Shrug. All creative people in every field should immediately quit thinking, inventing, conceptualizing new products, etc. and thus doom the economy. In the meanwhile, learn Russian. It may end up being a freer country than America.
Unlike a business with a sudden new income stream, the federal government will just spend it and mostly waste it. Whereas you and I would pay down debt…attempting to be free and clear.
So the end result of ANY new tax revenue will be INFLATIONARY.So Warren is so stupid that she cannot understand that, and her proposal will WORSEN the Lower and Middle Class.
Meanwhile if the richest Americans, and this is a very small but significant subset, do in fact pay these new taxes, it will KILL JOBS and also adversely affect the market as investments are suddenly moved around versus planned and timed.
The rich will leave and go to less taxed destinations/countries and that income stream will disappear. Businesses will follow.
and yet the tax would remain. and the only people left to pay for the benefits promised by the new taxes would be the middle class or the poor.
Word. If I was in that bracket, I would already have left. Does anyone remember the “Panama Papers” story? There are several places in the world where you can park your assets, whether they are legal or illegal. Things are very definitely starting to spin out of control. Gray Beaver and her rent-a-mob will probably take over in 2020. I hope I am wrong.
htt ps://en.m.wikipedia.org/wiki/Price_revolution
Look at what happened in 15th Century Spain. They owned massive tracts of land due to conquering Cetral and South America and absorbing gold and silver by enslaving natves who did the mining. To this day, Latin America is messed up.
That flood of new revenue to the government created terrible inflation for them and that was low compared to what the USA has faced since Nixon opened trade with China and exacerbated by the Clintons.
You don’t help the poor and middle class by taxing the wealthy. It will harm the former not the latter.
Instead you create incentives so jobs are created DOMESTICALLY and so wealth is kept DOMESTICALLY as an investment. You create incentives to pay fair wages and benefits so all have better lives.
The government should control inflation by spending LESS and balancing the budget and avoiding DEFICIT SPENDING.
Less revenue is better as the government just wastes it by creating ever more government workers that cannot ever be paid for by the general citizenry.
The government should lower spending especially internationally and foster domestic trade and avoid imports that harm domestic trade to protect jobs.
Obamacare illegally created government subsidies to heathcare insurance so it made it HUGELY INFLATIONARY.
The Democrats are clueless.
In the 1930’s my people had problems with Communist,German science developed a wonder drug that cured people with communist tendencies
It was called something like storm or tornado D or something. This wonder drug was a 100 percent effective on rehabilitating communist scum. We need to rediscover this drug to day with all of these communist be in our government.
WOW!
2.75 trillion over 10 years uis 275 billion a year.
That is about a QUARTER of the usual annual red ink.
I wonder if komrade Liz think theh 1%ers are going to stick around to pay all that or will they all migrate to AUSTRALIA!
Good idea – Let’s start with Nancy Pelosi’s fortune
Jim in Va is right. If you stick it to the rich, they move to somewhere where they won’t be screwed over. How many times do we have to see this before liberals figure that out? Eventually, taxes will mean you tell the tax officials how much you have and they decide how much you can keep. Warren and the other liberals won’t be satisfied until this is the case. They’re so generous and compassionate when they are using someone else’s money!
Warren or any other Marxist is elected president, CWII will start in 5… 4 … 3… 2… 1…
Me thinks she speaks with fork tongue, the only people that will be targeted will be those that are not in their Satanic group as these demon craps will set up tax havens for themselves such as charity organization solely for the benefit of themselves e.g. Clint, Muski.
I can only support this plan if I get the whole 2.75 trillion dollars myself. Probably not going to happen though.
The EVIL of this is that it is a property tax on EVERY THING YOU OWN. And, as anybody who has done the thinking, a property tax is better known as RENT you pay to the lord of the castle for using HIS property. i.e. Fauxchahantas would have the Federales steal everything you own and make it the property of the US Gov’t. You would have to pay the tribute every year or they take it all.
EVIL