The piece first appeared on The Beacon. More than 80 wealthy individuals are petitioning for higher taxes on the rich to help pay for the billions in new government programs made necessary by the Covid-19 pandemic. This is petition is disingenuous at best. If the wealthy want to pay more to help fight COVID-19, they can choose…
Tax Wealth but not the Warren Way
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.
Wealth Flows and Population Aging
So what exactly causes the flow of wealth to reverse? Children have not somehow suddenly become expensive, unproductive creatures. What has changed is that their parents have lost control over that productivity. Contemporary market economies have systematically dismantled all legal and customary direct obligations that children once had towards their parents, a dismantling that is still going on in some parts of the world.