12/11/2019

Warren's Wealth Tax Only Makes Sense if the American Dream is Dead

"Warren and her fellow wealth-tax proponents assume there is an impenetrable barrier dividing the “haves” from the “have nots.” So any gain in wealth to the “haves” means an irreparable loss to the “have nots.” In such a world, it would simply be right and just for government to balance the wealth between these two defined classes.


But such assumptions are far from reality. There is no clear and impermeable barrier between classes. Indeed, those who are and are not among the wealthiest Americans changes over time. Indeed, over their lifetimes, according to research conducted by Thomas Hirschl, a sociologist at Cornell University. Hirschl found that 11 percent of Americans will rank among the top 1 percent of wealth holders in the US for at least one year during their lives. And among those who make it into the top 1 percent, only 5.8 percent will stay there for more than two years, and only 1.1 percent will be there for over ten years."