Socialists claim that by raising taxes on the rich, they will reduce wage and wealth inequality in America.  One such leftist, 2020 presidential candidate Senator Elizabeth Warren (DS-MA), is proposing an annual tax on the wealth of the richest Americans to reduce inequality.  Warren is calling it the “Ultra-Millionaire Tax” – those households with a net worth of over $50 million would pay an annual 2% tax on every dollar of net worth above $50 million and a 3% tax on every dollar of net worth above $1 billion.  Economist Emmanuel Saez projects that the Warren wealth tax would apply to less than 0.1 percent of U.S. households (75,000 households), and would raise $2.75 trillion over ten years. 

What Warren has yet to explain is how this estimated $2.75 trillion, in the hands of the federal government, is going to reduce wage and wealth inequality.  Not one word.  Yet it isn’t too complicated to understand.  If you make the wealthiest American innovators poorer by confiscating some of their wealth, the gap between the rich and the poor will get smaller.  The leftists will then point to this reduced gap; this reduced wealth inequality, as proof positive that socialism is working. 

While Warren has yet to fully describe how her scheme’s loot haul will trickle down to the poor, she has a concrete plan to confiscate the wealth of the 75,000 households before they try to flee the country.  Warren proposed a significant increase in the IRS enforcement budget.  Translation: We’re coming after you with guns and the power to lock you away in prison.  Warren also proposes a 40% “exit tax” on the net worth above $50 million of any U.S. citizen who renounces their citizenship.  Translation:  We realize that this plan is so indecent that some American citizens will be pushed to renounce their citizenship.   

Leftists like Senator Bernie Sanders (DS–VT) and Congresswomen Alexandria Ocasio-Cortez (DS-NY 14th District) take it much further.  They want production and wealth collectively owned.  If you are a business owner, they want to force you to surrender your company, property, investment, innovation, and inventions over to your employees.  They want profit sharing for all employees.  They want laws that force businesses to have workers on the board of directors.  The politically correct term for this hostile takeover is called co-determination.  They want total control. 

Ocasio-Cortez, a proud member of the Democratic Socialists of America (DSA), rallies her minions by proclaiming that ‘workers get paid less than the value they create’.  No kidding!  While the millennial segment of the U.S. population stare at Alexandria with dreamy eyes and frothy mouths, their minds escape from the confines of sound reasoning.  The reason why ‘workers’ get paid less than the ‘value’ they create is because a business can only stay in business if it makes a profit.  Take a restaurant for example.  If food costs, labor, rent or mortgage, taxes, insurance, maintenance, security, equipment renewal, utilities, telephone / internet, trash pick-up and extermination, accounting fees, and business licenses, land and building upkeep, etc. equal 100% of the total sales in a week, the business made no profit.  If these costs equal 120% of the sales, the business lost money.  No business can lose money week after week.  The goal of any business is to control costs so that the expenses are less than total sales.  The goal is to make a profit.  As Dave Thomas, founder of Wendy’s affectionately once said, “Profit is not a dirty word.”

But profit is a dirty word to leftists unless it is shared equally with all the workers.  That’s their socialism.  They claim that it is immoral for profit to be in the hands of the founders, creators, innovators, inventors, and risk takers.  Their hypocrisy is so blatant – yet few in the liberal media can wake up from the utopia dream and ask this simple question:

Will the workers share in the losses too? 

If not, and we know the answer already, then this leftist fraud is the most immoral, deceptive, dirty trick of all.  Business will slowly begin to fail if these socialist plans are enacted.  Tax revenue will plummet.  Income taxes will be 39% to 60%, as they currently are in the Scandinavian countries.  The leftists love to point to the Nordic countries as an example of the utopia that awaits America.  Sales tax will exceed 24% as it is in Sweden. 

Under the democratic socialists plan, private property and enterprise will be limited.  The government will more fully regulate all aspects of the economy.  Accumulated wealth will be confiscated through higher taxes.  At first the leftists will target the “ultra-wealthy”, but as businesses collapse under the weight of the communal mandates, the government will not only have to replace that lost tax revenue, it will need more money to care for the now out-of-work workers.  Next the wealthy get heavily taxed.  And then the almost wealthy get their turn to pay their fair share.  And then the middle class, who are now the wealthy, get their chance to do the moral and right thing.  This is what a democratic economy will do to the United States of America. 

It is very popular nowadays to claim what is the GREATEST threat facing our CONSTITUIONAL REPUBLIC.  The first greatest threat is the belief that the United States is a democracy.  Benjamin Franklin famously said, “Democracy is two wolves and a lamb voting on what to have for lunch.”  Just imagine if the law required a democracy regarding all aspects of you business or current place of employment.  Seriously consider the mayhem that is guaranteed to ensue. If you’re all for the idea of a democratic economy, do you have the moral fiber to stand up and say we workers will share in any losses too? 

The second GREATEST threat facing our CONSTITUTIONAL REPUBLIC is creeping socialism that has been slowly spreading across our country, like molten lava, since the passage of the atrocity known as the 16th Amendment. Conservatives, Libertarians, and Democratic Capitalists had better realize that this is not a drill.  This is a real time threat that needs to be met with fierce resistance and ultimately destroyed.  If you remain sheep, the wolves will eat you. 

The 2020 presidential candidate leftists are all running on the ‘I’m giving away free money’ platform.  They are appealing to the participation trophy generation as well as those Americans that refuse to accept the role they played in their current financial predicament. As John Smith wrote in Jamestown (1609)

“You must obey this now for a law, that he that will not work shall not eat (except by sickness he be disabled). For the labors of thirty or forty honest and industrious men shall not be consumed to maintain a hundred and fifty idle loiterers.”

The Sander’s, Warren’s, and crazy-eyed Cortez’s of this country truly believe that the idle loiterers bare little to no reasonability for their predicament – that they are left-behind victims of capitalism.  Capitalists believe, except for the sick, mentally ill, and disabled, that these idle loiterers are in fact, idle loiterers.