Let’s just start right in on the obvious:
First of all, taxes are necessary in a well organized society. Capitalism – yes, the “free market” capitalism that so many freedom lovers love to promote – requires a certain amount of taxation to pay at least for a court system to adjudicate both torts and commercial disputes and infractions of the various regulations that are required in order for people to not take advantage of or otherwise hurt others. We can potentially argue for a reduced amount of government – in some cases perhaps vastly reduced. We can argue for a reduction of certain taxes and fees. But those people who claim that “all taxation is theft” are simply wrong. Because, whether they admit it or not, the alternative would fit right in with your favorite dystopian horror movie where the richest dudes in the neighborhood have the guards with machine guns sitting on walls around their compounds to fend off the ravening hoards.
And second, not everything that people point to and deride as “Socialism” is actual, full-on Socialism. Because the actual definition of real socialism is collective (which means Government) ownership of the means of production. And having a few social programs is not 100% that. And the word “Socialism” too often is used for just name-calling.
The proposed “Percent Wealth Tax” is BOTH Socialism and theft.
And here is why:
THIS IS A STUB ARTICLE WHICH WILL EXPAND ON THE FOLLOWING TOPICS:
People who disparage “millionaires” and “billionaires” seem to think that wealthy people are like the Disney character, Scrooge McDuck, and have money bins full of gold coins that they go swimming around in. But that characterization, just like a functioning “pure Socialism,” is a fantasy.
It is even a fantasy to think that such people necessarily have bank accounts with seven-figure balances to their credit.
No. The vast majority of the “wealth” of a successful person is in the value of the company that they own.
The percent wealth tax is socialism because it is confiscation of the ownership of the means of production.
And the percent wealth tax is theft for the same reason.
If you want to argue about increasing certain income tax percentages, then we can do that. That is merely siphoning off a stream of productivity. Do it too much and its parasitic. And beyond a certain point, it could be considered theft. But we can argue about where that point is.
There is no argument regarding taxation of a percentage of the ownership of the means of production. It is conversion.
Definition from dictionary.law.com:
conversion. noun. a civil wrong (tort) in which one converts another’s property to his/her own use, which is a fancy way of saying “steals.”
A rich person who is subject to the “percent wealth tax” has two options:
Option #1: They sell off some of their company stock, thus diluting the market and reducing the price for others in the economy, including those people who are depending upon that stock value as a part of their retirement fund.
Option #2: They simply hand over to the government part of their percentage of ownership of the company, thus directly promoting a socialist take over.
Both are bad for the economy. And both are confiscatory.