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Islam has solved this problem over 1400 years ago. Zakat is a form of wealth tax that applies to money over a certain minimum amount. For currencies, it's 2.5%.

by apta 6y ago

Islam has solved this problem over 1400 years ago. Zakat is a form of wealth tax that applies to money over a certain minimum amount. For currencies, it's 2.5%. So if you have $1M sitting in your bank account for 1 year, then by the end of the year you owe $25K to charity. Different percentages apply to other wealth/estate (like farm produce or cattle). It's an extremely fair system, that does not punish people from making high wages (there is no income tax in Islam), and pushes people to invest into the economy. It also does not inherently cause inflation like today's fiat money. It's quite sad to see that humanity keeps refusing to learn from the past.

syshum 6y ago
Wealth Taxes are just as bad if not worse than Wage/Income Taxes. They have a massive destabilizing effect on the economy, especially if that wealth is tied up into stock of a company Take for example the "great evil" of today Amazon and Jeff Bezos. If Bezo's was forced to liquidate say 2% of his ownership in Amazon to satisfy his wealth tax that would send the stock into a free fall wiping out many many times more than that in value. So not only does that make it hard to actually calculate the tax bill, over time that kill most investments, 401K's pensions, etc Taxes on subjective wealth (i.e totaling all assets up based on "current market value") is a TERRIBLE system, and very unethical far more unethical than income based taxation
- apta 6y ago
  Islam's Zakat system provably works. Just read history. > If Bezo's was forced to liquidate say 2% of his ownership in Amazon to satisfy his wealth tax Except nothing I explained about Islam's Zakat laws force anyone to liquidate in the manner you're describing. Note I said cash money. Stocks are not cash money, and hence will not be taxed in the same way I explained. Ownership in companies is subject to things like debt, which will reduce the amount of money paid out. Islam's Zakat is different from the wealth tax some leftists are trying to push today as you're describing.

by apta 6y ago

syshum 6y ago

Wealth Taxes are just as bad if not worse than Wage/Income Taxes. They have a massive destabilizing effect on the economy, especially if that wealth is tied up into stock of a company Take for example the "great evil" of today Amazon and Jeff Bezos. If Bezo's was forced to liquidate say 2% of his ownership in Amazon to satisfy his wealth tax that would send the stock into a free fall wiping out many many times more than that in value. So not only does that make it hard to actually calculate the tax bill, over time that kill most investments, 401K's pensions, etc Taxes on subjective wealth (i.e totaling all assets up based on "current market value") is a TERRIBLE system, and very unethical far more unethical than income based taxation

apta 6y ago
Islam's Zakat system provably works. Just read history. > If Bezo's was forced to liquidate say 2% of his ownership in Amazon to satisfy his wealth tax Except nothing I explained about Islam's Zakat laws force anyone to liquidate in the manner you're describing. Note I said cash money. Stocks are not cash money, and hence will not be taxed in the same way I explained. Ownership in companies is subject to things like debt, which will reduce the amount of money paid out. Islam's Zakat is different from the wealth tax some leftists are trying to push today as you're describing.