A Wealth Tax

Socialist candidates for president are touting a wealth tax to ‘redistribute’ the wealth from the rich to the poor. Apparently believing the government is a better arbitrator or where the monies should be invested. Here is where I believe that simple notion is wrong.

A billionaire or millionaire does not have the money in a vault piled up in neat stacks in his basement. It is invested in the communities of the world through IOUs such as bonds, and CDs and projects. These bonds and financial instruments are funding the salaries of teachers, bilders, carpenters, welders and many other working individuals.  Taking the ownership of the IOU and putting it in government hands will ultimately lead to the corrupt transfer of ownership to political cronies who are the parasites of society.

This is the problem with Socialism. It transfers the ownership of Capital (which is basically the ownership of an IOU) to the state politician from the private individual or corporation  who has cared for it and created it.

A good example is the recent building  of a 30 million dollar stadium in Brazil . The population screamed that the monies should have been given to the poor and needy. In reality the 30 million dollars wasn’t buried in the foundations of the structure, but given to the workers, such as, carpenters, mason, welders as salaries. Who subsequently pass the monies to local grocers, car dealers, store operators etc.

This is why socialism always leads to decay and desolation.

By John Klosak   –   Share if you like.