Tax the Rich Math

"Son, your ego's writing checks your body can't cash."
--Commander Tom "Stinger" Jordan (Top Gun)

Prof Williams demonstrates the math associated with 'taxing the rich' as a means for fixing our fiscal problems.

The federal government spent $3.7 trillion in 2011. Let's try to pay for that by soaking the rich:

1) 100% marginal tax rate on incomes above $250K = $1.9 trillion

2) Confiscate the net worth of America's top 400 billionaires = $1.3 trillion

The combined $3.2 trillion still puts us short a month or two of fed spending. Next year we won't be able to cover the $1.3 trillion in wealth taken from the rich this year. When it's gone, it's gone.

Moreover, as WEW observes, federal govt liabilities are growing at about $8 trillion (yep) annually. Currently confiscating all AGI of earners making $66K+ and all of 2011 corporate profits does not cover just the growth in liabilities.

Apparently we're witnessing the 'new math' of liberals. The new math of socialism.