Wealth tax to pay for EU bailouts?

The British Telegraph reported the comments of Professor Peter Bofinger, an adviser to Angela Merkel, that he made in Der Spiegel, demonstrating just how disconnected the academics are from the real world. They still live in the world of Marx and seem to have missed that Marx’s whole class warfare did not work. 

Bofinger suggested that the “rich” in struggling Eurozone countries, such as Spain and Italy, should face new property taxes instead of any future raids on depositors savings, as in Cyprus.He told a German magazine:

The resourceful rich just move their money to banks in northern Europe and avoid paying.

Instead of taxing cash, European Union governments should in future target property and other, less mobile assets, he said.

For example, over the next 10 years, the rich should give up a portion of their assets.

The argument goes that the taxes should be used to fund future bailouts rather than relying on cash injections from the Troika. However, Merkel has yet to endorse the ideas put forward by Bofinger. The point is that all of this destroys the economy and when you need private enterprises to create jobs, these assholes are doing absolutely whatever they can to prevent the situation from ever getting better. Just where does Germany even have the right to tax the rich in other countries?

This idea deals with the capital flight. He proposes to tax the assets that cannot be moved – infrastructure. That is plants, real estate, whatever they cannot flee with to some place else.