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Define "hold capital". Most capital held in banks ends up helping the velocity of money because it's used for loans. If we tax the hell out of money stored in
by bmelton 9y ago
Define "hold capital". Most capital held in banks ends up helping the velocity of money because it's used for loans. If we tax the hell out of money stored in banks, banks will have less reserve, which reduces the fraction of which they can lend, which means your average joe has less access to loans for their cars, maybe their first house, a small business, etc.
Past that, if it's expensive to hold money in America, they'll stop holding money in America, which means capital flight, which is its own very large problem worth avoiding.
- FuriouslyAdrift 9y agoWhich is why I say tax ALL holdings of people operating in the US. Foreign AND domestic. A few countries already do that. The idea is to with as much force as can be brought to bear get money to move into investments that hire people instead of just accrue capital gains. An investment that puts people to work and generates 10% is much better than an investment in a fund that generates 10% in cap gains. Same gain, vastly different outcomes.