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As a thought experiment replace URV with [Unit of Minimum Wage] UMW. "But everything would be listed in URVs, the fake currency. Their wages would be listed

As a thought experiment replace URV with [Unit of Minimum Wage] UMW. "But everything would be listed in URVs, the fake currency. Their wages would be listed in URVs. Taxes were in URVs. All prices were listed in URVs. And URVs were kept stable -- what changed was how many cruzeiros each URV was worth." 'Everything would be listed in UMWs, the fake currency. Their wages would be listed in UMWs. Taxes were in UMWs. All prices were listed in UMWs. And UMWs were kept stable -- what changed was how many dollars each UMW was worth.' So if the minimum wage was raised, but correspondingly taxes also went up, that would be (if based on a value tax) somewhat of a tax on the rich. However anyone who's wages didn't rise with the plan, as the middle class in the US currently experiences, is made correspondingly poorer; while the rich still benefit from being able to raise prices. That is the war on the middle class.

jiofih 5y ago
By your definition any kind of wealth transfer to the lower classes would be a “tax on the rich”. Funnily, it’s quite common in Brazil to refer to larger monetary values as “2.5 salaries”
- mjevans 5y ago
  How the tax is structured and effectively applied greatly affects that. Taxes on "use", at least without specific exemptions or targets, are usually regressive. Everyone must buy food. Many need to use the roads to do things (like get to work), so gas taxes are regressive and tax non-property-owners who have little real choice or say about their destinations. If the rich were taxed properly, the effect would also be to tax the poor though all of the rent-seeking the rich have. If rent-seeking, instead, was broken then the poor might be unshackled and able to build wealth. ** Focus on the buying power ** rather than a minimum wage. Provide the basic needs for all to break the rent-seeking slide towards the monopoly of a few and allow communities to thrive.

jiofih 5y ago

By your definition any kind of wealth transfer to the lower classes would be a “tax on the rich”. Funnily, it’s quite common in Brazil to refer to larger monetary values as “2.5 salaries”

mjevans 5y ago
How the tax is structured and effectively applied greatly affects that. Taxes on "use", at least without specific exemptions or targets, are usually regressive. Everyone must buy food. Many need to use the roads to do things (like get to work), so gas taxes are regressive and tax non-property-owners who have little real choice or say about their destinations. If the rich were taxed properly, the effect would also be to tax the poor though all of the rent-seeking the rich have. If rent-seeking, instead, was broken then the poor might be unshackled and able to build wealth. ** Focus on the buying power ** rather than a minimum wage. Provide the basic needs for all to break the rent-seeking slide towards the monopoly of a few and allow communities to thrive.