Promoted: American Wealth Tax
The more of anything you have, the less each discrete unit of it is worth. The scarcer something is, the more it’s worth. If a scarce something is highly desirable, competition by those desiring it will drive the price up.
There is an immutable truth in basic economics: If you tax something, you will have less of it. We also want to be paid the most the market will bear for whatever we sell while paying the least the market will bear for whatever goods or services we buy. We are an altruistic society but we each act in our own self interest.
The wealthiest Americans are not just sitting on big fat bank balances. No one who hoards wealth holds it for long. Microsoft founder Bill Gates, worth an estimated $108 billion is not just hoarding cash and cash equivalent assets. Most of his wealth consists of stock in his company, Microsoft. He also holds debt in the form of bonds and Treasury securities, real estate, shares in the ownership of capital assets and other valuable items that are not money. Their value is estimated based on what they could be sold for if he liquidated them today.