Senator Warren’s proposal is inadequate because it arbitrarily imposes the net worth tax on households with $50 million or more in assets. It is not a serious attempt to tax wealth. Targeting the super-rich is a symbolic effort that has widespread political appeal. Her proposal imposes heavy compliance costs that will only add to the IRS bureaucracy.
It’s easy for politicians to demonize rich corporate executives and demand they fund solutions. Most of us aren’t rich and thus won’t have to chip in, making for an easy sell. But a lack of money is often not the biggest problem, and solutions that ask more people to contribute force public officials to maintain some fiscal discipline.