Many people say that they donate to charitable causes to “give back” for being successful in business or their life. We assume that their success was due to luck or rich parents. Yet if you look at their circumstances more closely, it probably was because of hard work, ethical principles and choosing an education that prepared them for success.
There’s a lot of buzz being created by local, state , and national candidates about social and wage equality. They are proposing to establish a “wealth tax.” It is important for people to understand what a wealth tax is.
A wealth tax is a tax or bill which is payable every year on money and tangible or intangible assets of value earned and retained by a person or business. To determine that amount you must add up all of the assets you have; cash accounts, retirement accounts, land, building, stocks, bonds, furniture, jewelry, cars, trucks, antiques; anything that has an established value. Next you must list and add up the total amount of debt (liabilities) you have; loans, credit cards, mortgages, notes; all ongoing financial obligations and the total amount owing on each. Next step is to take the total amount of your assets and subtract the total amount of your liabilitues/debt to determine what your net worth is; this is your wealth factor.
This type of a tax would be due every year based on your wealth factor and would greatly effect everyone's ability to build up the funds needed to retire. Wealth is actually the "nest egg" we all need and desire to have as we live our daily lives and ease into retirement; it is your ability to live an independent lifestyle at the income level which you desire to have for your "golden years."