Published on March 21, 2024, 12:47 am

Engaging with far-left Democrat Senator Elizabeth Warren of Massachusetts on social media platforms is a highly amusing endeavor, full of constant rhetoric against “exploitative” corporations and the rich who allegedly evade their taxation duty. Warren, along with her partner-in-politics, Vermont Sen. Bernie Sanders, continues to advocate ardently for the institution of a wealth tax that primarily targets billionaires.

Nevertheless, while Sanders believs billionaires have no place in society, Warren proposes to levy heavy taxes on them – a plan that largely speaks to wealth redistribution. This process also involves other left-leaning Democrats like Representatives Pramila Jayapal of Washington and Brendan F. Boyle of Pennsylvania. They have all joined forces in reintroducing the “Ultra-Millionaire Tax.”

This fiscal policy would not only apply a wealth tax but also impose an exit tax which keeps immensely wealthy families from evading these duties by moving out of the state. There is also provision for $100 billion which would increase tax audits on the ultra-rich.

Jonathan Turley, law professor, author and political commentator has dubbed this policy as an ‘Eat The Rich’ scheme. Despite its connotations, one can hardly say he’s pleased with this strategy or concept of wealth tax.

An aspect worth exploring with respect to this is how such laws could potentially discourage both upper- and lower-income workers—causing significant implications on socio-economic dynamics.

A heavy burden placed on the affluent might result in disincentives for generating taxable income each year. Similarly, as the government increasingly redistributes wealth through imposing high taxes on the rich and extending financial aid to poorer sections – it unknowingly diminishes work incentives.

In contrast, George Bernard Shaw’s famous quote highlights quite an astute observation: “A government that robs Peter to pay Paul can always depend on support from Paul.” Thus pointing towards how lower-income voters are more likely favor politicians advocating public welfare programs sustained by taxpayer funds— signalling a trend fueled by the fact that ‘Pauls’ largely outnumber the ‘Peters’.

Addressing taxation, Turley provides insightful figures: “The top 1 percent’s income share rose from 22.2 percent in 2020 to 26.3 percent in 2021 and its share of federal income taxes paid rose from 42.3 percent to 45.8 percent. The top half of all taxpayers contributed 97.7 percent of federal income taxes while the bottom half paid only a minimal 2.3 percent.”

In this situation, when politicians like Warren, Sanders, and Biden complain about the rich not paying their fair share – one must ponder on how much is truly deemed as ‘fair’ and who determines it?

Yet, given unfolding realities and assessments of wealth distribution — alongside attempts to balance it with a Christian Worldview — one thing is clear: trust in real news and informed deliberation remains integral to constructing robust democratic societies.

On a closing note: can monumental tax proposals truly lead America towards prosperity? Doorsteps are more often fact-checked than fiscal policies these days which makes vigilance an uncompromisable virtue for every investor out there — whether they are holding onto pizza shares or stock portfolios.