The tax on the super wealthy

In the US, the Democratic party is planning to tax the super wealthy because of the widening inequality in the US society. The total wealth of the top three wealthiest men in the US equals the total wealth of the bottom half of the US population. The Democratic party plans a 70% tax on the super wealthy people and the wealthy people have publicly opposed this plan, including Michael Bloomberg and Howard Schultz.

The main argument of the opposition side against the plan is that this tax plan would push the US to a socialism path. This argument might have had a good market during the Cold War; however, at the moment, such argument may not gain the ground given over 70% of the US population support this tax plan. Heavy progressive taxation usually has one negative impact which is it reduces people's incentives to work harder. However, the tax plan of the Democratic party focuses the super wealthy, such negative impact will not be applied to the majority of the population, apart from the top 5 to 10 per cent of the population. Would this affect those people who want to have great innovations and inventions in order to earn enormous money, maybe and maybe not. People may be affected by the tax plan because they are likely to not earn as much as they expect, but the money they earn from great innovation and invention is still going to be enormous. Moreover, it is possible for the government to make some amendment to the tax plan to make the tax more pro-innovation.

Overall, I think such progressive tax plan can actually be accepted and passed, and it is likely for the US to become a more European like country whose government has a much more progressive tax system and spends enormous expenditures on forming the welfare state.