NJ Star Ledger That Rich People Don’t Pay Property Taxes On Items They’ve Already Purchased

You can almost make a case that they are calling for the end of property taxes

You pay taxes on your house. Why shouldn’t a rich guy pay them on his $8 million preserved shark? | Editorial

Most Americans agree that the ultrarich should pay more in taxes. But this is often dismissed as self-interest: Tax reform is cutting my taxes, and raising yours.

You know something is seriously rotten about our economy, though, when even the billionaires argue that they should be taxed more.

This appeal to all the 2020 presidential candidates, released in a letter Monday, was signed by moguls who amassed their own wealth, like Facebook co-founder Chris Hughes, and those who inherited it, like Abigail Disney.

As has been noted again and again, go for it. No one is stopping you. You can easily send a check to the IRS.

The problem, they all agree, is that in the face of profound inequality, huge sums are sitting around untaxed by the federal government, in assets like stocks, bonds, yachts, cars and art.

Like a $590 million yacht with a basketball court, owned by Hollywood’s richest man. Or a 14-foot tiger shark preserved in formaldehyde, worth $8-10 million, owned by the hedge fund manager who inspired the series “Billions.” You get the idea.

In general, we pay taxes when we earn or spend money, but not on wealth itself. As a result, the richest 0.1 percent will pay the equivalent of 3.2 percent of their wealth in taxes this year, the letter notes, compared with 7.2 percent paid by the bottom 99 percent.

Sigh. They paid sales tax on those items purchased. Most of which went to the state and local coffers. Just like with the property tax on houses and vehicles. Most people, though, cannot afford to pay the property tax on their house and car up front. So, instead, they are subject to the whims of politicians, who can lower, and raise!, their property tax. Often to pay for things that the citizens do not want or need. And may not help them in the least. Rich people paid a sales tax on the acquisition of their property. Further, take the $590 million yacht. People were paid to build it. A company made money on it. Someone made a good commission selling it. Someone made money designing it. People make money staffing it, maintaining it, and repairing it. People make money stocking it. People make money when it is berthed. And these buffoons want to charge a property tax on the possession of it?

Assets aren’t all sitting around doing nothing: stocks, bonds, property like yachts are moving the economy.

This isn’t about class warfare; it is about a moral, economic and patriotic duty, they argue. Income inequality has grown so extreme that even the uber-rich are taking a stand. It demands a new aggressiveness on the part of government, too.

It’s about class warfare.

Democrats, on the other hand, have a torrent of proposals to address economic injustice, including a plan put forth by Elizabeth Warren to tax wealth. Bernie Sanders, Pete Buttigieg, Beto O’Rourke and others have also come out in support of a tax on the wealthiest Americans.

“If you own a home, you’re already paying a wealth tax—it’s called a property tax,” Warren argues. “I just want the ultra-rich to pay a wealth tax on the diamonds, the yachts, and the Rembrandts too.”

So, what happens when the average citizen is paying extra taxes on their diamond wedding rings and small sailboats? You either tax all or none. Otherwise, this violates the Constitution. Further, this would be creating a federal property and sales tax. Democrats should be careful what they wish for: they just might get it.

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16 Responses to “NJ Star Ledger That Rich People Don’t Pay Property Taxes On Items They’ve Already Purchased”

  1. alanstorm says:

    The NJ Star Ledger makes a good point – eliminate property taxes now!

    Is that not what they meant?

  2. ST says:

    Project Veritas Update – Google Insider blows the whistle on the workings of the World’s Largest Search Engine


      • Elwood P. Dowd says:

        Another Project VeryAss nothing burger.

        Wouldn’t you expect big internet companies such as Google and Facebook to try to prevent the fake news (mostly from Russia) that supported trump in 2016?

        • Kye says:

          No Elwood, I would expect big internet companies to allow people free speech and let us decide what is fake. Or are leftists too fukin dumb to know the difference? Sorry, asked and answered. It’s not conservatives burning the digital books. That’s the usual leftist position.

          • Elwood P. Dowd says:

            Does Kye support tightening the libel laws so that papers like the WaPo and NYT can be more easily sued by guys like trump?

          • gitarcarver says:

            The problem Google is facing now Jeffery is that the admission of the bias removes the protection under section 230.

            Google can act as a neutral publisher of content and be protected from libel laws or they can censor and be sued.

        • Jl says:

          J-this fake news and or collusion you talk about constantly-is it in the room with you right now? Can you see it?

  3. Kye says:

    At this very moment Democrat Communist operators all around the country are signing up non citizen immigrants and felons to vote via motor/voter laws. they are laying plans to hide “ballots” until needed, aid in multiple voting and harvesting votes. They have scores of commie lawyers with pre-written suits -just fill in the names- ready to deploy on election day declaring recounts for all close elections where the Republican wins (only). They are devising new and ruthless ways to make sure the mistake of 2016 never, ever happens again and if they succeed they will have established a permanent majority not unlike every communist and Islamic state on earth. And it will be run by the new Majority minority and America will disappear.

    Trump 2020 Now more than ever! Save America First!

  4. Jl says:

    “Huge sums sitting around untaxed like stocks, bonds, yachts, ect..” What? Did these “geniuses” forget that the money was already taxed the first time around? When they made the money to buy the boat, for instance, they paid either federal and state income taxes, or capital gains taxes, or an inheritance tax, and then paid sales taxes when they bought the items.

    • DCE says:

      What they want to do is tax assets, i.e. a ‘wealth tax’. Too bad it’s unconstitutional to do so.

      They can tax income. They can tax interest and dividends. The can tax capital gains. But to tax something which you bought with money that was already taxed is over the top. The federal government can’t tax your assets unless you sell or transfer them. What makes states think they can do that? In effect, they are taking away your assets, your property without compensation, a violation of the Fifth Amendment.

      Nothing can stop them from taking every bit of your property away in ‘wealth taxes’ in the future if they get away with now.

      The states like New Jersey, Connecticut, Illinois, and California don’t have a revenue problem. They have a spending problem. No matter how much you give them it will never be enough to sate their spending appetites. They could take every penny you have and they’ll demand more.

  5. MrToad21 says:

    The real problems begin when they start carving out exceptions. The DoJ & FBI Clinton ‘matters’ are examples of exemptions. Now NO ONE trusts ‘justice’ or the FBI to administer the law fairly.

    I would imagine ANY tax scheme would have exemptions built in. Something like a Gates or Zuckerburg donating all their wealth to themselves to create a multi-billion dollar tax-free ‘foundation’ that will ‘do good work’ while being administered by themselves, their families and their friends.

  6. JorgXMcKie says:

    Illinois used to have a personal property tax. Anything you owned of value was supposed to be taxed. Jewelry, buildings other than your house, livestock, tools, vehicles, machinery, etc. My mother was Township Assessor and she was supposed to go to every occupied house in the township and ‘value’ what people owned. She tried hard to be fair.
    I had a roommate who lived in Cook County (Chicago) and I was at his home when they received their “notice of assessment”. They were supposed to list all their property and it’s value. The father laughed and crumpled it up and threw it in the waste basket. I asked if he wasn’t worried, and he said the county didn’t have enough employees to personally assess everybody, so everyone just threw the notices away. Cook County didn’t collect a whole lot of personal property tax.

    • Professor Hale says:

      Virginia has that on vehicles, trailers, RV’s and boats, including luxury yachts. That’s why John Kerry doesn’t permanently dock his here. It’s also why anyone who can, keeps his out of state registration on his vehicles.

  7. xtron says:

    so move to Germany where, once a year, a government agent comes into your house and inventories the contents. a tax is then levied based on how many and how valuable things are. got an extra t.v.?? it’s taxed. got a high end couch? it’s taxed. got a guest bedroom?? everything in it is taxed. got expensive art andf jewelery?? it’s taxed, taxed, taxed. all so the government can provide “free” health care, and take care of all those muslim migrants.

    • david7134 says:

      Good summation. They are so happy about there free medical care, but there are substantial problems with free care that Americans will not tolerate. I just got back from several weeks in a France. Great to visit, but the people are miserable with their free stuff. As to free school, you might get it if you pass all the test,I don’t think they can even go to college unless they make the grade on the series of test they take all through school.

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