I read this article on MarketWatch where they outline Elizabeth Warren's plan to tax the wealthy:
- 2% tax on every dollar above $50 million in assets
- 6% tax on households crossing the $1 billion threshold
In a Twitter discussion between Mark Cuban and Jason, they suggest that the effects of these taxes will cause an annual market/asset liquidation and discuss how it may affect the overall market.
What are the mechanics they are talking about? Why would one need to liquidate their market assets because of taxes?