In today's Wall Street Journal in an article entitled "The Conservative Case for a Wealth Tax"
the author, a Stanford Professor, argues for the introduction of yet another tax system to “hit old wealth along with new wealth.” His proposal, an annual “modest” tax of 3% of wealth over $3,000,000 is just the “key to flattening the income tax to make it more revenue efficient.”
The author conveniently fails to mention that we already have a “wealth tax;” its call the Estate Tax!
Putting aside the social and political issues, implementation is nearly impossible. We estate planners have enough trouble obtaining valuation for gifts by donor’s; imaging having to valued everything you own each year until the day you die and to then have your estate and heirs continue this problematic and expensive exercise.
Do we really need yet another tax system?