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> you undermine riches' motivation To tax the rich is not the same as disincentivizing investment! Investment matters to the economy, not capital. Yes you nee
by worldsayshi 9y ago
> you undermine riches' motivation
To tax the rich is not the same as disincentivizing investment! Investment matters to the economy, not capital.
Yes you need capital in order to invest. You need the right amount of capital in the right places! Rich hoarders are not the best investors.
- redahs 9y agoTaxing capital and labor creates deadweight loss and disincentivizes investment in the production of more goods and services. Capital goods are durable goods which go to wherever they are best treated, including overseas. If you want to tax the rich without taxing capital or labor, then you want to tax land. Unlike capital, there is only a finite supply of land and it cannot be moved overseas. Wealthy individuals like owning land in areas with high land values in stable countries with high public spending, and with a land value tax they directly pay for it.