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A wealth tax doesn't just affect multi-billionaires, it guts all accumulations of wealth. If anything, billionaires are most able to shrug off a wealth tax. You
by themacguffinman 4y ago
A wealth tax doesn't just affect multi-billionaires, it guts all accumulations of wealth. If anything, billionaires are most able to shrug off a wealth tax. Your average Financial Independence strategy (pursue a high income to accumulate a sizeable warchest of assets quickly, then passively live off the illiquid assets slowly) is severely gutted by a substantial wealth tax that aggressively drains saved assets.
- X6S1x6Okd1st 4y agoDo you feel like a wealth tax starting at the 50,000,001th dollar of 2% until you get to a billion is "gutting all accumulations of wealth" or would harm the average financial independence strategy?
- themacguffinman 4y agoNo, probably not, assuming you keep it accurately adjusted for inflation. This will likely impact the next tier of wealth: tech startup founders. Either startups will represent a tax loophole or the wealth tax will slowly drain the illiquid assets of founders and early employees during the startup phase which nowadays often have a notoriously long gestation period.