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Why is it hard to tax these things directly? Is it our dumb inheritance rules or something else?
by Eridrus 8y ago
Why is it hard to tax these things directly? Is it our dumb inheritance rules or something else?
- asdfasgasdgasdg 8y agoI don't think it is that hard, technically. At least not in broad strokes. You'd want to have some way to tax investment gains, even if unrealized. Then you levy that tax on rich people. One big problem with the corporate income tax is that you're also taxing pension funds, and middle class people who have small investments. And you're actually taxing them at the same rate (as a fraction of their holdings) as ultra wealthy people. In that sense the corporate tax is actually rather flat, which is normally something we progressives are not a huge fan of. The only thing that makes the situation even a little tolerable is that pension funds are going the way of the dinosaur and truly poor people cannot afford to invest, so the tax is mainly incident on the super wealthy. But the middle class is definitely getting a raw deal from corporate taxes.