Time to revisit Donald Trump's idea

[Onlooker]

When Trump toyed with the idea of running for President on the Reform Party ticket, he proposed a one-time wealth tax to pay off the deficit. Now, considering that the extremely wealthy benefited most from the corruption of Wall Street (including outlandish bonuses and buyouts, market manipulation strategies, and tax strategies), maybe it's time for the extremely rich to rescue the economy? Obama could go a long way towards implementing national health care, dealing with global warming, and fixing our economy, by making Trump's proposal a reality.

http://en.wikipedia.org/wiki/Wealth_tax

In 1999, Donald Trump proposed a once off 14.25% wealth tax on the net worth of individuals and trusts worth $10 million or more. Trump claimed that this would generate $5.7 trillion in new taxes, which could be used to eliminate the national debt.

[Dreamer Tatum]

1. Do you think there's $5.7 trillion sitting in bank accounts, waiting to get drawn?

A lot of that wealth is in equity, which means some would have to get sold, which means (a) there has to be someone to buy it, and
(b) flooding the world market with all of that wealth would probably depress its value.

Raise your hand if you think the stock market would suffer if people had to sell lots of securities to fulfill a tax bill (it's called a pecuniary externality - look it up).

And you think foreigners own a lot of the US now? Wait till we have to sell a lot of it to them to pay the tax bill.

In addition to bright ideas like this, Donald Trump likes to form bankruptcy remote business entities, and then file bankruptcy and tell investors to go fuck themselves when he mismanages things. Yeah, I want advice from a douche like that.

[FreakinDJ]

4. They already sold them - Wealthy are holding Gold and Cash

which would make a 1 time Wealth Tax easier

[Dreamer Tatum]

5. False

Equity is still far and away the number one source of wealth in the US.

[AllentownJake]

8. Even the craziest rich guy

only converted 10% of his money into those vehicles as a just in case fund.

[960]

12. Then they owe the IRS just like if an average Joe doesn't have enough cash

to pay his bill. It will be accounts receivable, and improve the balance sheet of the US immediately.

[Kdillard]

2. Why would anyone promote such an insane idea? The last

person I would listen to regarding financial matters is Donald Trump.

[Spinzonner]

3. Hasn't he fired himself yet ?

You'd think with all that bankruptcy he'd find that person who runs it incompetent

[Onlooker]

6. It's a good idea on his part

I don't like Trump much, but the idea of taxing the wealthy in order to fund social programs, alternative energy, and the stimulus seems like a sound idea. Can't imagine why so far in this thread people are sticking up for the extremely wealthy. If every billionaire paid a tax of $100 million, they'd still have at least $900 million, and even if the tax caused the value of their assets to drop, they'd still be okay. I don't understand why DUers are so concerned about billionaires. They are normally the social cause of the Republicans.

[BeFree]

13. Insane idea?

Not! In fact, it's the first sane thing he's ever said!

Tax the billionaires at 22% would be the only change I'd make.

[AllentownJake]

7. Someone else said it on here.

The money is all tied up in equities and bonds.

[Onlooker]

9. That only affects income tax

A wealth tax would require many of those people to sell equities and bonds, which would drive the value down, but the people who were being taxed would still be living very, very, very well.

[OwnedByFerrets]

10. Two things are needed. One, go back to the tax rules before Johnson....

tax any income of more than $3.2 million at 91%. That way instead of hogging all that money into "investments" they would put the overage back into their companies like they used to.
Second, tax all stock transactions. It doesnt have to be much, but it will do wonders for increasing the tax base. It will also discourage the type of buying and selling that got us into this mess.
Now, are those two things politically viable? Maybe right now while President Obama still has "capital". Two yrs from now, probably not.

[Ikonoklast]

11. No.

The only thing that Trump ever did correctly in his life was win the sperm lottery.

Other than that, his advice on matters financial amuse me greatly.