People tend to view taxes in one of two ways. One view is that taxes are the price people pay for government goods and services. The other is that taxes are a penalty levied on people who earn income or have wealth. Elizabeth Warren’s proposed wealth tax takes the second view.
Under the first view, government produces goods and services, like roads, police protection, courts, parks, and more. The citizens who consume this government production pay for their consumption through their taxes.
Under the second view, taxes take money away from those who have income or wealth because those who have it