Never in American History have so many people exhibited more dependence on the Federal Government for their financial lives and futures. As our National Debt approaches $40 Trillion (12 zeroes), every aspect of our financial system is threatened with major change in order to survive.

In response, governments at every level have dramatically cut spending been looking for additional ways to generate revenue through taxation. One avenue is gaining attention from certain high-spending lawmakers – the so-called Wealth Tax. Under this odious concept, wealthy taxpayers would be assessed a tax, equal to a percentage of their assets, including stocks and bonds, property, and the value of their closely held companies. That would be in addition to their already exorbitant income tax requirements.

As a non-attorney, I can only render a personal opinion regarding this proposal, but I agree with several prominent attorneys who believe that this form of taxation is unconstitutional. Perhaps the worst aspect of a Wealth Tax is the economic harm that would befall not just affected taxpayers, but the entire economy. Forcing unwanted sales of valuable assets to generate cash for taxes can depress the market value of assets.

Unfortunately, Wealth Tax proposals are symptomatic of deep-seated envy among many lower-income taxpayers. To these people, “Tax the Rich” is the universal solution to nearly all problems, real or imagined. If this were effective, our national financial problems would have been solved long ago, as tax rates have been climbing for upper-income people for decades, yet all the while the National Debt has increased.

Lawmakers in several states have proposed a state-level Wealth Tax for their own citizens. In response, many of the wealthiest citizens in those states have moved to less taxing environments in Florida, Texas, Tennessee, and others. In response, California is now calling for a Wealth Tax on the national level. Politicians divert attention to their own failed policies by going national.

Today’s 7,000-page Tax Code, despite its size and complexity, does have a consistent theme. We tax income when it is realized. Earn a paycheck, pay the tax on the income. Sell an asset, pay tax on the gain realized. Once the tax is paid, the asset is off limits to the U.S. Treasury. It adds to individual wealth.

Several years ago, I coined the term “taxation without monetization.” This simply means that cash to pay the tax has been received by the taxpayer. Taxing assets purchased by wealthy taxpayers with already-taxed funds, and still owned by those same taxpayers, does not fit the concept of our system.

Say NO! to the Wealth Tax. History is replete with examples of optimistic projections countered with vastly differing results.