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> that wealth compounds much, much faster than tax burden grows I don't think anything compound without risk. Can I get a wealth refund if market get downturn?

> that wealth compounds much, much faster than tax burden grows I don't think anything compound without risk. Can I get a wealth refund if market get downturn? Wait I do with all the money the Fed is printing. Maybe we should stop messing with the economy instead of chasing X or Y policies.

SamBam 6y ago
Up until this point in history, the stock market has never been negative over the course of a ten-year timespan. Even if you invested at the height of the market in 1929, the day before the crash, it would have taken you less than ten years to get your money back [1]. If we are ever in a period when the stock market has been flat or negative for ten years or more, I'm sure such a wealth tax can be rescinded. But if we are ever in such a period, the bottom four-fifths of Americans are going to be in much, much more catastrophic shape, and the small tear we shed for the super-rich that the government is still nibbling away at a fraction of their treasure during that time (presumably to spend on the massive bread lines that would exist) will be fairly irrelevant. 1. https://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html https://www.nytimes.com/2009/04/26/your-money/stocks-and-bon...
- readthenotes1 6y ago
  "Up until this point in history, the stock market has never been negative over the course of a ten-year timespan" that's true if you ignore inflation. In real dollar terms, accounting for inflation, you have to wait nearly 20 years--but only 4 times in the last 140 years. https://www.multpl.com/inflation-adjusted-s-p-500 https://www.multpl.com/inflation-adjusted-s-p-500
  - SamBam 6y ago
    The New York Times article I posted calculates the math differently. For instance, the Great Depression was a deflationary period, not inflationary. In any case, my point still stands. Whether we're talking 10, 15 or 20 years, the wealthy hold on to their wealth. And if we ever enter a long-term recession, wealth taxes could be reversed as easily as they were enacted. But why would we? The Great Depression hit the poor much harder than it did the Rockefellers.
LatteLazy 6y ago
Fyi, you can harvest tax losses and use them to reduce future tax bills, so yes...

SamBam 6y ago

Up until this point in history, the stock market has never been negative over the course of a ten-year timespan. Even if you invested at the height of the market in 1929, the day before the crash, it would have taken you less than ten years to get your money back [1]. If we are ever in a period when the stock market has been flat or negative for ten years or more, I'm sure such a wealth tax can be rescinded. But if we are ever in such a period, the bottom four-fifths of Americans are going to be in much, much more catastrophic shape, and the small tear we shed for the super-rich that the government is still nibbling away at a fraction of their treasure during that time (presumably to spend on the massive bread lines that would exist) will be fairly irrelevant. 1. https://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html https://www.nytimes.com/2009/04/26/your-money/stocks-and-bon...

readthenotes1 6y ago
"Up until this point in history, the stock market has never been negative over the course of a ten-year timespan" that's true if you ignore inflation. In real dollar terms, accounting for inflation, you have to wait nearly 20 years--but only 4 times in the last 140 years. https://www.multpl.com/inflation-adjusted-s-p-500 https://www.multpl.com/inflation-adjusted-s-p-500
- SamBam 6y ago
  The New York Times article I posted calculates the math differently. For instance, the Great Depression was a deflationary period, not inflationary. In any case, my point still stands. Whether we're talking 10, 15 or 20 years, the wealthy hold on to their wealth. And if we ever enter a long-term recession, wealth taxes could be reversed as easily as they were enacted. But why would we? The Great Depression hit the poor much harder than it did the Rockefellers.

LatteLazy 6y ago

Fyi, you can harvest tax losses and use them to reduce future tax bills, so yes...