Tax net worth of wealthy freeloaders

Republicans get upset at "freeloaders" who get food stamps and other government benefits. On the other side of the economic tables are those with inherited wealth. They didn't earn it. They were born into it.

References to millionaires as the rich can be traced to the late 1800s and early 1900s, including people like John D. Rockefeller, Andrew Mellon, etc. To have what $1 million would buy in 1900 would require about $30 million in today's dollars.

Assume that someone with $30 million gets 5 percent growth: 2 percent in dividends and the remainder in capital gains. Their currently taxable dividend income would be $50,000 a month and their tax deferred capital gains would add to their wealth by an additional $75,000 a month. They get highly favored tax treatment, and there are tens of thousands of such freeloaders.

Then there are the big rich who have inherited $300 million or more. I can't find reliable statistics, but it's got to be a large number. For example consider Jamie Johnson. He's the great-grandson of the founder of Johnson & Johnson. When he turned 21 he inherited $400 million. He made a movie with some of his peers, like Donald Trump's daughter, showing what life is like when you're rich. The movie is called "Born Rich". It's available from your local library. See also his movie "The 1 percent."

There are also numerous inherited superrich freeloaders who are worth $3 billion or more (Koch, Walton, etc.). Thomas Piketty says you could have a 100 percent income tax rate on the taxable income of these millionaires yet their total net worth from invested income would still grow faster than the assets of 99 percent of Americans.

The answer? A total net worth tax.

Kent Kirkwood

Mount Prospect