Elizabeth Warren has proposed a tax on wealth, something that is long overdue. There has been no effective way of limiting the tendency of wealth to feed on itself, and that growth has now become explosive.
Some of America’s richest families can now sit back, do nothing, and watch their wealth grow by as much as $10 million dollars a day. Moreover, by investing in municipal securities some or all of this growth can be tax-free. Of course, to turn this into cash they must sell some of their appreciated assets, and that generates a capital gains tax. But a capital gains tax does not touch inherited wealth, which remains inviolable — until the inevitable inheritance tax when someone dies.
Capitalism is a great system (why else would virtually every country in the world have adopted it?) but it has one key flaw, and that is the provision to limit wealth as it grows beyond all reasonable bounds.
— Jim Bowden. Sonoma