4 ms·

Better yet, tax wealth instead of income. The value derived from government services is more closely proportional to wealth than to income, and income-based tax

Better yet, tax wealth instead of income. The value derived from government services is more closely proportional to wealth than to income, and income-based taxation is inherently regressive compared to wealth-based taxation. The only significant wealth-based tax in the US is property tax, and even that is somewhat regressive because the share of income and wealth spent on housing decrease as income and wealth increase.

walshemj 8y ago
That wouldn't work have you not heard of splits :-) ie trusts / funds designed with separate classes of share one gives income one gives capital gain.
dahdum 8y ago
Inflation is the tax on wealth, and much easier to administer and harder to avoid than a wealth tax program would.
- benlorenzetti 8y ago
  Inflation is more a tax on wage income than existing wealth, because investments will inflate in addition to their productive growth returns.
- TomK32 8y ago
  buy property, rent it out, raise rents above the inflation rate. simple.
- tuesdayrain 8y ago
  Inflation is a tax on cash, not wealth
lend000 8y ago
I disagree with wealth taxation -- wealth can be tied up in illiquid assets (longtime family home, grandma's jewels, etc.) and even more importantly, a tax on wealth kind of makes it like you don't really own property, you are just leasing property rights from the government. Not a hallmark of a free society in my opinion (land taxes are questionable for the same reason), whereas a tax on economic activity made possible by a government that enforces a market structure / the rule of law seems far more amenable. However, I will add that I could maybe get behind minor wealth adjustments for income taxation, if the incentives could be figured out. For example, a lower bracket person / new college grad with no wealth who had a really good year financially by consulting or something might pay a slightly lower amount than a longtime VP who has accumulated significant wealth, but had the same income for the year. This encourages people to spend, not save, though, and it still is indirectly taxing property rights. Perhaps a better way would be to adjust based on the moving average of previous incomes.

walshemj 8y ago

That wouldn't work have you not heard of splits :-) ie trusts / funds designed with separate classes of share one gives income one gives capital gain.

dahdum 8y ago

Inflation is the tax on wealth, and much easier to administer and harder to avoid than a wealth tax program would.

benlorenzetti 8y ago
Inflation is more a tax on wage income than existing wealth, because investments will inflate in addition to their productive growth returns.
TomK32 8y ago
buy property, rent it out, raise rents above the inflation rate. simple.
tuesdayrain 8y ago
Inflation is a tax on cash, not wealth

lend000 8y ago

I disagree with wealth taxation -- wealth can be tied up in illiquid assets (longtime family home, grandma's jewels, etc.) and even more importantly, a tax on wealth kind of makes it like you don't really own property, you are just leasing property rights from the government. Not a hallmark of a free society in my opinion (land taxes are questionable for the same reason), whereas a tax on economic activity made possible by a government that enforces a market structure / the rule of law seems far more amenable. However, I will add that I could maybe get behind minor wealth adjustments for income taxation, if the incentives could be figured out. For example, a lower bracket person / new college grad with no wealth who had a really good year financially by consulting or something might pay a slightly lower amount than a longtime VP who has accumulated significant wealth, but had the same income for the year. This encourages people to spend, not save, though, and it still is indirectly taxing property rights. Perhaps a better way would be to adjust based on the moving average of previous incomes.