https://www.americanthinker.com/blog/2022/03/president_biden_proposes_a_punitive_wealth_tax_and_the_ap_dutifully_publishes_a_puff_piece_saying_how_great_bidens_economic_policies_are.html
Either the media is full of economic illiterates, or they don’t care about the truth as they seek to influence voters.
The proposal includes taxing unrealized capital gains which are not income. The tax would destroy investment and cause stock prices to go down. The collapse in stock prices would harm everyone because public pensions will be harmed, leaving government entities trolling for higher taxes.
It is not as if Musk, Buffet, Gates, Bezos, and other billionaires have billions sitting around waiting to pay taxes. They would have to sell assets and they would be inclined to move more investments overseas, which would contribute to economic decline.
There are two sensible, easy ways, to get more money from billionaires.
The first is to only allow the billionaires to deduct their cost, instead of market value, for charitable contributions. Allowing them to deduct market value makes us subsidize them.
The other sensible, appropriate way is to finally tax hedge fund billionaires, like George Soros, at ordinary income tax rates instead of at a lower special rate. From the Associated Press:
The fading of the pandemic and the growth has enabled the deficit to fall from $3.1 trillion in fiscal 2020 to $2.8 trillion last year and a projected $1.4 trillion this year. That deficit spending paid off in the form of the economy expanding at a 5.7% pace last year, the strongest growth since 1984. But inflation at a 40-year high also accompanied those robust gains as high prices have weighed on Biden’s popularity.