The Coming 10% Global Wealth Tax
Socialism only works until you run out of other people's money. Having shared this historically proven fact, the 10% Global Wealth Tax as proposed by Thomas Piketty's book, Capital in the 21st Century, decries that wealth inequality will become greater with the concentration of money going to the world's top earners.
Thomas Piketty is also a bloviated idiot, and I'm going to share how this redistribution of wealth tax will not just fail, but sink under its own epic brand of stupidity.
Liberal leaders such as Obama and his administration feels that any governing body can tax itself into prosperity. That if they can take and reallocate wealth from the top down, it will balance an economy. Like most fairy tales, it sounds really good on the paper, but has no actual ability to function in reality.
A wealth tax isn't like an income tax, though income is usually where such governmental debts are paid through. Take the average Middle Class income of $75,000 and apply the wealth tax to it. If they have a savings, or a small business, any liquid (cash) accounts is also taxed. That could easily be a minimum $7,500 tax on top of what they already pay in fees, licenses, permits, capital gains, interest payments and other expenses also collected by local, state and federal tax hogs.
That's money that can't be spent on the actual economy. That is less groceries to support the stores and their products. Less money for utilities, tradesmen don't make money if they see less contracts to build or repair things for customers. The less anybody has to spend locally, the less revenue that is generated.
Now let us look at a billionaire. He has all that money, so 10% won't hurt him, right? Well, that new facility to provide jobs won't happen if 10% of his billion is legally grabbed by a Global tax policy. Investments into new products that also provides newer technologies, and new opportunities, pretty much delayed if not completely derailed. That would be a minimum of $100 Million less capital that billionaire has to reinvest into the consumer's economy.
The weight of that 10% tax, over and above everything else, would fall hardest on the wealthiest countries, like America. Consider the value of the Mexican Pesos. That 10% wouldn't make a dent in any income disparity, but would only serve to take even more money out of the pockets of those who have very little.
Let's be abundantly clear about this. Governments don't make money. They never have. They can only spend what they can legally steal, and any Global over-reach in this area will ensure an economic collapse so horrific, it will be cheaper to burn the paper money in a fireplace to warm a living room than it would be to actually buy a stack of wood.
Democrats and their Liberal zombies continually look for ways to grab money for their supporters, calling them free programs. Nothing is free. Somebody else pays for it, either in taxes or in fees and permits. When those sources eventually collapse and can no longer provide, who gains then? As I said in the beginning, Socialism only works until you run out of other people's money. A 10% Global Tax would only provide another nail in the lid of that nasty economic coffin, with Obama holding the hammer of communism to help smash it into place.