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Taxing wealth is a terrible idea, because it means every asset has to generate income each year to offset taxes.
by bduerst 10y ago
Taxing wealth is a terrible idea, because it means every asset has to generate income each year to offset taxes.
- eppp 10y agoWhy is that bad? Asking purely out of ignorance.
- salamisultan 10y agoIt skews asset creation. You do not want to macro the econmy like that
- bduerst 10y agoJust off the top of my head: - It causes wealth to consume it's own base, depreciating all assets faster even in lieu of inflation - It disproportionately punishes seniors, who are asset rich and income poor. - It encourages the wealthy to move and hide assets offshore just like they do with income. - Double taxation: Wealth is already taxed when it is created - Punishes asset rich, low income businesses like grocery stores, farms, etc.
- everlost 10y agoI think it's a great idea. Every asset not being put to use, is similar to hoarding cash under the mattress - a waste of capital.
- bduerst 10y agoExcept that it isn't. Generating income isn't a prerequisite to putting assets to use.