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Interestingly enough, the ultra rich would probably like to move to a sales tax model too. As a fraction of income, I'm sure that billionaires do spend less tha
by jfim 6y ago
Interestingly enough, the ultra rich would probably like to move to a sales tax model too. As a fraction of income, I'm sure that billionaires do spend less than any of us.
For a sales tax to derive the same amount as an income tax, it would have to be very large. Warren Buffett said that his effective income tax rate is around 16%. For a sales tax to be comparable, it would have to be, say 32% and Buffett would have to spend 50% of his income on taxable goods.
The author does mention a wealth tax, but does not really elaborate on that.
- iamatologist 6y agoBillionaires would absolutely not pay a lot in sales taxes, you are correct. Especially the sweatervest billionaires who are almost conspiciously frugal (at least in public). And even the ones who flaunt their wealth won’t buy one yacht for every day of the month or something ridiculous like that. Or terraform the Ghobi Desert in order to turn it into their own personal mega golf course.