They call it a tax. It isn't. It's confiscation. A recurring annual confiscation. To better understand the malevolent 3% wealth "tax" one commie nut job has just put out there, we've targeted the 1966-'82 period, another time investors were strongarmed into covering the deep state's gross fiscal malfeasance for them. Consumer prices rose 297.84% over that period, castrating the fixed income crowd by that factor and crippling interest derived from the debt component of balanced portfolios, de rigueur throughout the investment community in the 60's. Many folks victimized by the Great Depression had refused to own stocks ever again, hence got fleeced once more, this time by Lyndon Johnson and them through the horrific guns-and-butter economic catastrophe devastating buy-and-hold bond investors throughout the seventies.
What would've happened if some fruitcake of that day had thrown a 3% annual confiscation in on top of all they'd already done to break the backs of decent, responsible, God-fearing American patriots like us way back then? Let's focus on the nation's bondholders for this one.
An investor with $100 million in Treasury bonds, considered the safest investment in the world in 1965, might have been earning $4.5 million on a 4.5% coupon as 1966 began. Burgling this victim at 3% a year can be looked at in two ways. Government stickup artists are either 1) clipping his/her/their/whatever income by $3 million in 1966, leaving the unfortunate(s) with $1.5 million before income taxes and less and less each year thereafter, or 2) looting principal, chopping net worth down to $97 million at the end of 1966 and by 3% annually thereafter, which is the intended outcome as stated by the above-referenced nut job, thereby purloining income along with principal as bonds are sold off each year to meet the confiscations.
Either way, that $100 million bond portfolio collapses to something like $48.7 million at the end of 1982, lowering income to $2.7 million from $4.5 million, while inflation cuts that ending income to the equivalent of $900 thousand in 1966 dollars. Going into this tragic fiasco, the victim(s) held one hundred thousand bonds. Forty-two thousand were plucked off by G-men, leaving the portfolio with 58 thousand after the 1982 confiscation, Had there been no wealth "tax", the victim(s) would still be holding the original one hundred thousand bonds.
Clearly, adding a 3% malevolent wealth confiscation to the 1966-'82 years destroys families, who basically are forced into paying Washington fruitcakes to go on and wreck more and more American lives with their treasonous evil ways.
