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Taxing wealth is a terrible idea because it requires government to get balance sheets from the masses. If you miscalibrate earnings minus inflation it’s also pu
by TimPC 5y ago
Taxing wealth is a terrible idea because it requires government to get balance sheets from the masses. If you miscalibrate earnings minus inflation it’s also punitive. Lastly for many families most of their wealth is their home which isn’t exactly liquid even if it grows in value. Wealth taxes would force many to sell their houses.
- dalbasal 5y agoThe masses don't have wealth, especially if you exclude personal dwellings. In any case, you need "balance sheets" to have CGT, which in theory we do.
- TimPC 5y agoCapital gains taxes are based on difference between buy and sell price of specific assets and require only those two data points. That’s very different from accurately pricing an asset yearly.
- dalbasal 5y agoTechnically, or originally perhaps, capital gains are paid based on gains. There are a lot of clauses and loopholes that allow for tax on gains to be deferred until they are realised.