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I don't get it. Asset prices track inflation like clockwork. What's even funnier to me is that taxes on wealth rarely raise as fast as asset prices! If anythin

• lonelappde 7y ago
  Wealth is accumulated income which is subject to income tax so wealth a different dimension, so even if you expect an additional tax that grows at the same rate? The units are incoherent.
  • bernawil 7y ago
    Wealth is accumulated income tax That's only valid if you think "wealth" can only be a bunch of cash in a bank account you saved. You may own a piece of land that could even predate the government in some places. Or you may own a patent. That's "wealth" which is subject to different taxes to "income". so even if you expect an additional tax that grows at the same rate? I don't expect, anything I was just pointing a fact. I live in a country that has experienced inflation over the last ten years and the reality is that income taxes have followed inflation but property taxes not, because the government doesn't update property book values as often. The result is that you can hold very expensive property while paying very low taxes. But this also happens in lots of other places: California and Proposition 13 come to mind.