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Wealth tax is a good idea that’s very hard to implement effectively. Many countries have tried it only to give up on it (Germany, Sweden). France has a comprehe
by gok 9y ago
Wealth tax is a good idea that’s very hard to implement effectively. Many countries have tried it only to give up on it (Germany, Sweden). France has a comprehensive wealth tax but it raises less than 2% of total tax reciepts, suggesting it’s not doing much. It’s very difficult to prevent the wealthy from finding ways to hide wealth.
- humanrebar 9y agoThis is part of the reason some want to tax consumption more aggressively. "Wealth" that isn't used is really just a collection of expensive large numbers. Sooner or later, when that wealth is used, it can be taxed as consumption and/or real property.
- dlp211 9y agoExcept it doesn't work that way because cost basis gets reset during inheritance which is a huge give away to the most wealthy families. It is also the reason for an Estate Tax.
- humanrebar 9y agoThe heirs would presumably be buying homes, cars, vacations, food, night clubs, etc.
- mikeash 9y agoUnless "use" includes stock purchases and political donations, you'll just hurt the poor even more. The problem with wealth concentration isn't buying houses and cars, it's buying power.