Donald Trump (yes, i know he’s a boob, and doesn’t stnad a chance of being elected…) has proposed the following: a one-time 14.5% tax on the net worth of the wealthiest americans. He claims this would raise trillions of dollars and eliminate our country’s debt.
Disregarding your political philosophies, would this work? I would gather that most of the wealthiest peoples’ assets are tied up in various assets of one sort or another. This would require liquidizing them. Wouldn’t a mass liquidation (tons of real estate, stock, etc cashed in at once) devalue these assets to such an extent as to cause havoc in the economy? a stock market crash? who would be able to buy all this stuff? bill gates would be too busy trying to unload hundreds of millions of shares of microsoft stock to buy one of steve wynne’s casinos.