Even the California liberal elite are jumping ship from the socialist brigade in D.C. that now wants to confiscate wealth, not just tax it. Elon Musk recently tweeted about the Marxist-like legislators saying, “Eventually, they run out of other people’s money, and then they come for you.”
The latest threat to Capitalism is the proposal by liberal Oregon Senator Ron Wyden to tax unrealized investment gains of billionaires in stock or real estate. Now, no one feels sorry for billionaires— but they are the innovators who change the world, create thousands of jobs, and produce tremendous wealth for millions of Americans.
The boatload of negative consequences coming from taxing unrealized gains could be disastrous for the United States. Once someone has a grand new idea or invention that could become the next great American company, he or she will first look to relocate to another country instead where the socialists haven’t overtaken the tax code. Capital will flee overseas for more favorable treatment, and investment market liquidity will dry up.
Imagine being forced to sell a big chunk of a profitable investment at an inopportune time just to pay a mega tax bill. The double whammy will hurt stock prices for everyday investors and dry up investments in capital spending, jobs, and philanthropy.
I have no doubt that once the liberal elite start this confiscation scheme for success on the super wealthy, Elon’s words will ring true— they’ll eventually come for the rest of us.