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All kidding aside, 3% is quite steep. Almost like her agenda is to make sure no one can have wealth above 50M. A 50/50 stock/bond portfolio will in an average year return 6%. So the rich would pay 50% of their income in wealth tax, not counting income tax and other taxes.
She was saying 2% during her primary campaign.


The bill actually is for 2% over $50 million and up to $1 billion, then goes to 3%. The first $50 million does not get taxed.

Let's look at the math: say someone has $100 million. They make 6% on their investments, so they now have $106 million. They pay 2% on $56 million, which would be $1,120,000. That's a lot, to be sure, but it's not 50%.

Many moons ago at my first job (property management company), we had several wealthy clients. As I got to know them, I found I could divide them into two categories: those who viewed their money as a means to worry less about money, and those who saw their money as a reason to worry more (they had more expensive problems). I knew which category I wanted to fall into if I ever got there.

I'm genuinely undecided about Warren's proposal (which I suspect is a hugely long way from ever becoming a reality), and open to hearing arguments from both sides. But the arguments that it's going to hurt the people who have managed to "save a little money" and that it's going to tax 50% of the income and keep people from ever accumulating more than $50 million aren't cutting it for me.

A larger problem to me would be how do you put a value on things like expensive real estate that doesn't change hands very often, or someone's business? That would be guaranteed to turn into never-ending rackets, and lots of work for accountants and lawyers.
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