Fair share? You decide

“Tax the rich!” is a favorite cry of the political left – and its dangerous. If you want strong social programs similar to say, Scandinavia, the cost must be allocated among all citizens. That is the only way to give everyone a stake in what is spent and how. It is the only way people will care about what they receive for their money.

Even more bizarre is the call to tax unrealized income – tax the paper value of the growth in investments before the asset has been sold and proceeds received. The nonsense of this would appear obvious. Your stocks appreciate $100,000 in 2024 and you are taxed on that. However, in 2025 the same stock depreciates $100,000, now what? Do you get a refund?

Then there is the call for a wealth tax, a tax on the net worth of a person more or less. But even defining that is a game and the decline in the amount from year to year is likely.

Everyone, not just the rich or wealthy, must have a stake in how government spends and where it comes from.

There are nearly 800 billionaires in the US. That is clearly wealthy.

However, there’s no single definition of how much money or possessions makes someone wealthy. It can depend on factors like location, lifestyle, and personal values. Someone living comfortably with a modest income in a low-cost area might feel wealthy, while someone with a high income in a very expensive city might not.

Anyone who earns or has accumulated more assets than you might seem wealthy.

Here is how the Scandinavians with their liberal social safety net do it.

Scandinavian countries, which include Denmark, Norway, and Sweden, rely on a mix of taxes to fund their extensive social programs:

• Income Tax: This is a progressive tax, meaning those who earn more pay a higher percentage of their income. The top rates apply to a broader range of earners compared to the United States, so even middle-class earners face higher income taxes.
• Social Security Contributions: These are typically paid by both employers and employees and fund the social safety net, including healthcare, unemployment benefits, and pensions.
• Value-Added Tax (VAT): This is a consumption tax similar to a sales tax, applied to goods and services at each stage of production. While VAT rates are high in Scandinavia, some essentials like groceries may be exempt.
• Corporate Tax: Corporate tax rates in Scandinavia are generally around the OECD average, lower than the U.S.rate.

Here’s a breakdown of some key points to remember:

• Income tax starts hitting people at a lower income threshold than in the U.S.
• VAT rates are high, but some necessities may be exempt.
• Social security contributions are shared by employers and employees.
• Corporate tax rates are moderate.