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Real property is taxed usually 1-2%, but depreciation of around 4% is allowed also, which along with 1031 exchanges makes real property investments fairly tax e
by naveen99 5y ago
Real property is taxed usually 1-2%, but depreciation of around 4% is allowed also, which along with 1031 exchanges makes real property investments fairly tax efficient. If financial instruments had a corresponding wealth tax, it would probably come with corresponding escape valves otherwise their value would quickly collapse. Newton’s 3rd law has a pretty strong analog in how economic behavior responds to taxes.
Would you tax wealth held as cash also? A 1-2 % negative interest rate on cash would decimate banks.
- imtringued 5y agoA negative interest rate is the most natural solution. Money is just a way to reresent a bar tab. You don't own the money because money is a claim to the labor of someone else. It is essentially a debt. People want that debt to last forever even though that is impossible as people age and die or their productivity is lost through unemploynent. The truth is that your money is rotting all the time. By cutting spending they run into the illusion that their money can buy more things. But money only starts rotting when it is actively used. So there is a delay between the current purchasing power and the decline in purchasing power after you have spent it. Negative interest rates merely eliminate the delay. They aren't taking anything away from you that existed in the first place. They are taking the part that wasn't real to begin with. They are shattering an illusion that many people believe in so they want to shoot the messenger. There is no store of value. Just 7 billion hard working humans. If they don't work your dollars buy you nothing. Currencies are worthless, it's the people that give them value.