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I theory (feel free to e skeptical), it works like this: Higher taxes mean that it's harder for rich people to consume a lot. So they would no longer be able t
by jeffdavis 8y ago
I theory (feel free to e skeptical), it works like this:
Higher taxes mean that it's harder for rich people to consume a lot. So they would no longer be able to afford a mansion, and the building manager would convert it into 10 apartments and one luxury apartment. The rich person would still be able to afford the luxury apartment, but there would also be 10 more "normal" units available to people relying on basic income.
The problem is that rich people don't consume in proportion to their wealth... most is usually invested. So high taxes don't necessarily free up consumable resources very effectively, and could have consequences for future tax revenue.
- boomboomsubban 8y ago>The problem is that rich people don't consume in proportion to their wealth... most is usually invested Money that is invested doesn't vanish, the companies they invest in use that money to produce more goods. Assuming the cost of labor goes up with UBI, less of the profit will go to the investors and more will go to the employees, effectively taxing their investments.
- jeffdavis 8y agoI think we are in agreement. My point was that it's nor clear that rich people would consume less, so the money would come from them divesting assets to pay the taxes.