The Democrats have been saturating the airwaves with ads promoting their candidate’s Five Year Plan. Oops — I mean “Opportunity Economy.” It’s going to be great for everyone, paid for by finally taxing the rich the way they need to be.
No doubt this will appeal to a great many voters who have been taught to look to Washington for goodies. It will also appeal to voters who believe that good intentions are all that matter; no need to bother ourselves with pesky questions about actual consequences of governmental policies.
One writer who isn’t content to let this act slide by is Professor Alexander Salter. In this AIER article, he takes a serious look at the predictable results of giving power to Kamala Harris and her handlers, who love the idea of omnipotent government (as long as it’s under their control).
Here is just one of his objections:
Perhaps most egregious is her endorsement of President Biden’s plan to tax unrealized capital gains. Just look at the awful incentives this policy would create. Instead of keeping their wealth in capital markets, bearing risk and facilitating growth, those experiencing unrealized capital gains would likely have to divest their position to discharge their tax liability. This policy seems designed to dry up capital markets, or else provide a beachhead for future direct wealth seizures by the government. Those objecting that the policy only applies to the hyper-rich (those with a net worth of more than $100 million) are clearly unfamiliar with the history of the income tax.
To the envious, taxing the rich sounds lovely, but they never consider the opportunity costs of diverting resources away from wealthy individuals and into the supremely wasteful maw of the federal government.
Read the whole thing, then share it with people who care about the long-run effects of ever-expanding government.