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How would a consumption tax help against accumulation of wealth? The super rich spend a lot less of their wealth on consumption than average people.
by ginko 8y ago
How would a consumption tax help against accumulation of wealth? The super rich spend a lot less of their wealth on consumption than average people.
- mbostleman 8y agoPersonally I don't see it as a tool to limit the accumulation of wealth. Yes, the greater your wealth, the proportion spent is generally less. But to me, unspent wealth is good. It means it's invested and providing capital for the market. Invested wealth has no real utility to its owner other than maybe helping one's credit rating and providing peace of mind.
- pjc50 8y agoInvestment provides control. Ownership of larger companies, larger areas of land and housing. Consolidation of control makes it easier to abuse. (Your consumption tax proposal would also have to mark political donations and ad spending as "consumption", or you're making the existent problems in that area far worse)
- SilasX 8y agoGood? Consumption depletes the stock of resources. Someone who minimizes their consumption is doing everyone else a favor.
- undersuit 8y agoRich people spend less of a percentage of their money to live a life with higher consumption rates than a poorer person.
- matthewdgreen 8y agoConsumption includes services. Basically, reducing consumption in a consumer-driven economy means everyone has less income to spend.