The Biden administration has proposed a tax on unrealized capital gains and some prominent Democrats want to raise the death tax to 65%.
How well do these wealth taxes work?
A cautionary tale comes from Norway, which in 2022 increased its annual wealth tax from 0.85 to 1.1%, and upped its dividend tax to 37%. Here is what happened:
Eighty-two rich Norwegians with a combined net wealth of about 46 billion kroner ($4.3 billion) left the country in 2022-2023, with 34 moving out last year alone, according to data from the Finance Ministry. More than 70 of those have moved to Switzerland, business daily Dagens Naeringsliv reported in January.
Keep in mind, Norway only has less than six million residents. So this would be the equivalent of more than 2,000 Super Rich leaving the U.S. The destination of choice is Switzerland, where the wealth tax is 90% lower.
Notice the big bump in leavers after the tax hike:
We love the indignation of the Norwegian politicians who sneer that these exiles are breaking the "social contract" by fleeing. Wrong. Expropriating people's wealth is the real violation of the social contract. Hopefully, U.S. pols will understand that.
You know that the DEI industrial complex is on thin ice when even The New York Times eviscerates it.
That was our thought after reading Gray Lady's devastating takedown of the University of Michigan's overzealous efforts to promote diversity, equity, and inclusion on campus.
The school has spent approximately $250 million on DEI initiatives since 2016. Yet the article points out, "the most common attitude I encountered about D.E.I. during my visits to Ann Arbor was a kind of wary disdain." Students, recounted the reporter, "rolled their eyes at the profusion of course offerings that revolve around identity and oppression, the D.E.I.-themed emails they frequently received but rarely read.
Why doesn't anyone do anything to roll back this failed system? Because a culture of fear is pervasive on campus. One former dean at the school – herself a woman of color – is quoted in the article saying, "no one can criticize the D.E.&I. program – not its scale, its dominance." Another person said criticism of DEI principles would be "career suicide."
DEI is fundamentally about creating a culture of victimhood. It's been shown to stifle intellectual diversity - all while creating cushy jobs for people who traffic in identity politics.
Bravo to the Times for documenting what everyone knows: DEI is a fraud and should be abolished on campuses, and in companies, throughout the country.
3) Next Up on the Left's Lengthy Ban List: Lawn Mowers
Some of us are old enough to remember the toil of cutting the grass with push mowers. They may soon be making a comeback.
California recently banned the sale of new gas-powered lawn tools. Colorado and Vermont have passed restrictions, but progressives in Minnesota, New Jersey, New York, and Washington say they aren't far behind with potential bans in order to save the planet.
"Ultimately we shouldn't be selling or using this highly polluting, harmfully noisy equipment," says Kirsten Schatz with PIRG in Colorado. In Washington, a bill that would have banned new sales of leaf blowers will be revived next year.
Just as progressives want to force everyone to drive electric vehicles, many areas want only electric yard equipment. The Texas legislature blocked local governments from imposing these bans, so Dallas is giving residents up to $200 if they ditch their gas-powered lawn equipment and Austin may offer incentives for residents to trade in old lawnmowers for new electric ones.
4) Why Elon Musk Is the Perfect Person to Help Repeal Onerous Regulations
Yesterday we noted that regulators want to ensure Musk's spaceships and rockets don't fall in the ocean and kill whales and sharks. Now we learn from a NYT analysis that Elon Musk's companies are currently in the crosshairs of about a dozen federal agencies. He recently fumed that there are some 400 agencies of government in Washington empowered with rule-making authority.
One issue of concern is whether Musk is being targeted for his political views. It's certainly suspicious that the FCC revoked its grant to SpaceX for rural broadband at $1,300 per connection to instead spend up to $100,000 with other providers.
