Comments by "PoodleScone" (@poodlescone9700) on "A better way to tax the rich" video.

@nathan woo: Most people own S corp small businesses. It is very difficult to liquidate assets to pay a wealth tax. Who would buy a fraction of a small business? Some corps require the owner to be of that profession like a doctor buying into a professional corporation. The end result is either take out a loan for the cash to pay taxes or liquidate the whole business. Both options will eventually kill the business.
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@keline Ahnung: if you make $100 million each year and you tax the $2 billion wealth at the $50 million, that person still has to pay federal and state income taxes (39% federal and 13% for CA or NY). Since we don't have SALT deductions anymore, that means ALL of the cash flow is used to cover taxes. That means there is $0 free cash flow.
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Do you even know the difference between cash flow and wealth? Most of the wealth is in hard assets, not cash. Taxes require free cash flow to pay because the US government does not accept barter. The valuation of wealth is based on market rates of exchanges of assets. If a person has to dump their assets to pay the wealth tax, this would move markets negatively. Example: If Jeff Bezos has to sell 1% of his Amazon stock on the open market, this would immediately depress the price of the stock. It is tantamount to a fire sale. Now think of this fire sale for all billionares happening all between January and April 15 to pay those taxes on the scale of trillions of dollars. If you thought a depression drop of 20% in your 401K is heart stopping, wait until the government forces an even greater drop. The cherry on this crazy sundae is the question of who will pay cash to buy those trillions of assets looking for buyers when everyone else who can afford them are also paying their wealth tax on April 15. This would result in a self feeding spiral of stock and real estate prices. No thank you.
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