Martin Armstrong’s wealth tax warning comes hot on the heels of Sen. Elizabeth Warren who is calling for a new wealth tax on global assets.
Elizabeth Warren, the Democratic candidate who is also seeking the 2020 presidential nomination of the Democratic party has proposed a “wealth grab” plan which would entail “a significant increase in the IRS enforcement budget” and “a 40% ‘exit tax’ on the net worth above $50 million of any U.S. citizen who renounces their citizenship.”
The Ultra-Millionaire Tax would tax the wealth of the richest Americans with all households net worth of $50 million or more-roughly the wealthiest 75,000 households, or the top 0.1%. Households would pay an annual 2% tax on every dollar of net worth above $50 million and a 3% tax on every dollar of net worth above $1 billion.
“Warren’s proposal is not only going to be the final nail in the coffin of capitalism and the United States but indeed, investors will migrate to China. The danger is clear”
Martin Armstrong’s wealth tax warning comes as voices for an Ultra-Millionaire Tax for the richest Americans grows louder
New York Mayor said this month (January 2019) that “wealth is in the wrong hands”, so we’ll take it.
New York Mayor Bill de Blasio, an aspiring Robin Hood with an altruistic goal to take from the rich to give to the poor said, “here is the truth, brothers and sisters, there’s plenty of money in the world. Plenty of money in this city,” the mayor said, flanked by screens with graphs of productivity outpacing compensation. “It’s just in the wrong hands!”
Whatmore, with 58% of Americans who have less than $1000 in savings and are unprepared for an economic downturn a Robin Hood-style wealth grab plan could be a real vote winner in the coming presidential 2020 elections.
The polarization of politics from far left to far right could become problematic in advanced economies in 2019. “Where opposing political groups previously expressed frustration with each other, they now express fear and anger,” Global Risks Report 2019. Indeed, those opposing political groups are the haves and the have nots. The latter is becoming increasingly angry, frustrated as they struggle with job insecurity and low pay to make ends meet, while the former fear a Bolshevik-style wealth grab.
“here is the truth, brothers and sisters, there’s plenty of money in the world. Plenty of money in this city… it’s just in the wrong hands!”
BILL DE BLASIO (New York Mayor)
Martin Armstrong’s wealth tax warning is a red flag for the future of capitalism “Warren’s proposal is not only going to be the final nail in the coffin of capitalism and the United States but indeed, investors will migrate to China. The danger is clear” said Martin Armstrong.
Up until the first quarter of 2018 Martin Armstrong had been bucking the bearish view in stocks but it now appears that forecaster has also flipped to the bearish side.
But Martin Armstrong’s wealth tax warning that investors will migrate to China doesn’t hold water
Communist China, one country two systems is an export-driven economy which relies on the world’s largest consumers, the US to keep its factory wheels spinning. China is plugged into the global economy and when the circuit breaks the world’s factory wheels grind to a halt. So a slowing US economy or anything that impedes China exports to its largest market, the US is likely to be a headwind on China’s economy. US trade tariffs are already having a negative impact on China’s industrial growth which is now negative.
Industrial grow in China fell to -1.8% year over year in November from a positive 3.6% in October. Moreover, the Chinese Yuan keeps falling and in late October it fell to a 21-month low against the USD.
Industrial and Commercial Bank of China, or ICBC, said in August that a primary challenge the bank faces is increased instability and uncertainty in the international environment.
So with China’s economy slowing, the Yuan losing value and the ICBC talking about increased instability why would investors flock to China.
“In order to impose a Wealth Tax, that means absolutely everyone would then by law be compelled to list everything they own right down to your wedding rings so the state could then calculate your wealth to impose a tax”
– Martin Armstrong
What about Martin Armstrong’s wealth tax warning that such a fiscal policy would destroy America in less than 10 years?
“In order to impose a Wealth Tax, that means absolutely everyone would then by law be compelled to list everything they own right down to your wedding rings so the state could then calculate your wealth to impose a tax” said Martin Armstrong.
That absolutely destroy our constitutional right to privacy, argues Martin Armstrong.
The crux of Martin Armstrong’s wealth tax warning is based on the view that Warren’s tax will add fuel to the fire because it will cause a collapse in investments
Warren’s tax will cause a collapse in investment which means that unemployment will only rise. When people appear to make a fortune because their company goes public, they have restrictions that prevent them from selling for a period. A wealth tax will be applied simply based upon values of shares they cannot sell. This would certainly lead to a mass exit of the upper-class, the very same as what took place in France – they just exited the country, argues Martin Armstrong.
“Elizabeth Warren is the new Karl Marx advocating communism in slow motion” – Martin Armstrong
Martin Armstrong’s wealth tax warning is also based on the government not have a good track record of managing public finance
Martin Armstrong argues that the government should not be relied upon to redistribute wealth and they tend to break their promise.
“Elizabeth Warren is the new Karl Marx advocating communism in slow motion. To sell the income tax in 1913, it was to be just 1% and only on the rich. Ever since it rose to 94% and now the Democrats want to raise it to 70%. No matter what rate they say today, they will always change it,” said Martin Armstrong.