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> you can't tax net worth Sure you can, although not all at once. Both property and capital gains taxes are examples of this. Basically, the only way off the
by LyndsySimon 8y ago
> you can't tax net worth
Sure you can, although not all at once. Both property and capital gains taxes are examples of this.
Basically, the only way off the top of my head to hold capital and not have it taxed is to leave it at rest - either in something like precious metals (which is a very poor choice as a vehicle for growth) or long-term investment (which makes it available for use by others).
Also, there's inflation. Inflation obviously devalues liquid capital, but it also impacts debts. If someone loans money at 1% APR, but inflation is 2.5%, then 1.5% of the value of the outstanding debt is being transferred from lender to the debtor each year.