Tuesday, October 26, 2021
The Billionaires Tax
Unable to convince the moderate members of their party to raise taxes in the customary manner, the Democrats have decided to go back to the idea first floated by the left, i.e. a tax on unrealized appreciation in the value of assets such as stocks, bonds, real estate, art and etc. Claims to the contrary notwithstanding, this is a wealth tax, which is laughably unconstitutional and dead on arrival at the Supreme Court, if it even gets that far. It is a direct tax (or there is no such thing) under Article I section 9 of the Constitution and cannot be done at the Federal level of government without triggering the apportionment clause. What the Democrats are trying to do is to redefine income to mean something never before accepted; and they are going into contortions to try and pretend that this is what the 16th amendment was intended for. I doubt this will even make it to the Supreme Court, unless the justices want to drive a stake through its heart so it never again rises from the grave.
The cynic in me believes that almost everyone in DC understands this, even the Democrats. They know this is going down in legal flames, but they are going to vote for it anyway because it gives them political cover for the massive amount of debt they are about to add to our already crushing sea of red ink. Once they pass this they can throw up their hands and blame the debt on the right wing Supreme Court.