Asset Tax to tackle Wealth Inequality

As the Republican tax plan is being debated or actually rushed through, we must remember that income inequality and income redristibution are not the issue or major problem. The problem is enormous wealh inequality or disparity.

If there is chaos and mayhem and insecurity in the streets and markets of a nation, the poor and lower middle class will think "Oh well it wasn't that great for us anyway so there isn't much difference, we have nothing to lose."

The wealthy and powerful however would lose everything they valued including the good life and wealth in assets and paper and in markets and their safety on the streets. Thus, the wealthy have an obligation to pay their fair share in wealth in order to maintain and expand their wealth and good life.

Punishing hard earned income and productivity excessively as we do now may not be a fair answer. An asset tax of 3% a year for people with $5 Million or more in assets and eliminations of all income and payroll taxes at federal level may be best and fair way. Economist Daniel Altman has run the numbers and this system brings in the needed revenue. This would not punish hard earned income of common people or slightly well off people but would gorce those with the most accumulated assets and thus the most to lose to pay a fare share for national defense, public safety and other services that protect the value of their assets in the long term. This could be called a national security or national integrity tax.

Perhaps this is currently practically unenforceable due to technology limitstions or even unconstitutional but that can change.

Howeverin meantime if you tax FICA and Medicare/ Social Security payroll tax on much higher incomes than the current cap at $160,000 or so and also tax passive income than the wealthy who really benefit from the stability of our governments, banks, and institutions and military and law enforcement would surely be paying enough to keep social security and medicare solvent and reducing our national debt. I would even tax up to $20 Million or more with the regressive payroll tax that doesn't hurt the wealthy and exempt those making $40, 000 or less of income from payroll tax as they need every dime they earn just to survive!

https://mobile.nytimes.com/2012/11/19/opinion/to-reduce-inequality-tax-wealth-not-income.html?referer=https://www.google.com/

https://mobile.nytimes.com/2013/02/10/business/yourtaxes/a-wealth-tax-would-look-beyond-income.html?referer=https://www.google.com/