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> That's what insurance company are (perhaps) for: what are they covered for? That's what you tax them at. There's also this idea, which could be useful for di
by ardy42 7y ago
> That's what insurance company are (perhaps) for: what are they covered for? That's what you tax them at.
There's also this idea, which could be useful for discouraging undervaluing assets for a wealth tax: the owner puts a value on the asset, and the tax authority has the option of purchasing it for that price. If someone tries to cheat the system by severely undervaluing their assets, their bluff can be quickly called.
- foogazi 7y agoWhy would a “tax authority” be buying property? Sounds like we are overthinking the problem and coming up with unreal scenarios
- ardy42 7y ago> Why would a “tax authority” be buying property? Basically, to disincentivize under-reporting the property's value for tax purposes. Many, many business manage to get away with egregious undervaluing to avoid property taxes today. For instance (IIRC) Apple values some of its headquarters buildings at $1 for tax purposes using an egregious tax theory, and they've gotten away with it for some time. They wouldn't do that if Cupertino could literally force a sale of that building for $1, it would be too risky for them.