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Say I own a business that has $250k in assets but does $10m/yr in revenue. Does that add to my wealth? How do you value owning a business?
by MuffinFlavored 7y ago
Say I own a business that has $250k in assets but does $10m/yr in revenue. Does that add to my wealth? How do you value owning a business?
- lend000 7y agoAnything based on wealth will have the challenging task of valuing assets, which is why the cutoff for where current wealth becomes a factor should be pretty high, so you only have to look at areas generating significant economic activity. One solution could be to limit wealth measurement to liquid assets and real estate -- any real world implementation will only be a heuristic. Better to have false negatives than false positives. I still maintain the easiest solution is to fix and improve graduated income brackets. They are so ridiculously broken and most likely the main driver of increased wealth inequality in the US over the last few decades, and yet somehow are not the focus of the issue. We also already have the infrastructure to measure economic income activity -- it's just tweaking rates and thresholds.
- MuffinFlavored 7y agoCan you expand on why you think income brackets are broken?