No. of Recommendations: 8
Its a simple asset tax. Sum up the market value of all your assets, then tax the amount over $1B at a rate of 25%.
So in 4 years the government would have taken the whole thing.
I heard a story (probably apocryphal) of a Senator asking the Congressional Budget Office how much a 100% income tax on incomes above $XXXX would bring in in each of the next 5 years.
And they gave him numbers in the billions for each year.
In the real world, of course, the number for every year after the first year would be $0.
You didn't read it carefully. Only the amount OVER $1B would be taxed. So the Billionaires can remain billionaires. Imagine you had $5B, the taxes due would be
$5B - $1B = $4B x 25% = $1B
So the Billionaire is left with $4B, assuming that the market value didn't fluxate the next year would be
$4B - $1B = $3B x 25% = $750M
I will let you do the math and show that everyone is going to be just fine.
PS: I don't think the rate would be 25%, my guess it would be closer to 3% - 5%. Ideally this would be coupled with a national sales tax (5%) and a significant reduction income taxes.
tecmo
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