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I have been talking of a Net Worth tax for some time now. Start at a value that is truly eye-watering for your average citizen, one which the lower-99% will ne
by rekabis 4y ago
I have been talking of a Net Worth tax for some time now.
Start at a value that is truly eye-watering for your average citizen, one which the lower-99% will never reach in their lifetimes. Say, for argument, $10M.
Implement an algorithm that plots out a Sigmoid Curve - 0% taxation at $10M, and increasing slowly at the beginning. Once it gets close to the inflection point, it rises rapidly to over 80% taxation, at which point it then slows down again, reaching 100% taxation for everything above the maximum value.
Which would be set at something truly ridiculously high - say, $100M.
That way, we have a smooth curve that cannot be “gamed” anywhere as easily as abrupt taxation levels. And we use simpler, market-valued assets from anywhere in the world that focus on how the hyper-wealthy sock away their wealth.
As such, any sort of classic investment is most definitely on the table, especially if it is ever valued by an open market. Housing, land, gold, stocks, bonds, business partnerships, you name it. All on board for taxation.
The nice thing about Sigmoid curves in a taxation role is that they start off incredibly gentle - you will likely not may much tax at all until you hit $25M of net worth, because it’s paid progressively on any amount above $10M. But at the same time, you pay 100% taxation on any net worth above $100M.
It is truly a progressive tax, leaving plenty of room for the ambitious, but is punishingly draconian on the vampiristically greedy.
- hervature 4y agoYour whole comment just shows how little you understand about the problem. The problem is not that governments do not know what a "Sigmoid Curve" is. The problem entirely lies in "Net Worth tax". How do you determine net worth? With all the different types of corporations out there, you just move your net worth into an entity that you do not "own". Just like how my work laptop is not mine. If your conclusion is to tax businesses on net worth, that would be easily skirted with international boundaries and drastically lower business creation.
- ryandrake 4y ago> With all the different types of corporations out there, you just move your net worth into an entity that you do not "own". Just like how my work laptop is not mine. This is the big problem with trying to tax the wealthy in America: There are just way too many ways to "not technically own" something, but still in reality be in complete control of it and benefit from it. Trusts, corporations, foundations: All these phony paper entities that you can "move" your stuff into in order to pretend to the government that it's not yours anymore, when it is in all reality totally controlled by you. I worked for a founder once where basically everything he owned and benefitted from was owned by a "charitable foundation" or something. His homes, cars, boats, everything. He probably paid zero in taxes, whereas I, a chump, paid the normal rate. Total scam, but hey, that's what you get when the wealthy write the law.
- puffoflogic 4y ago> All these phony paper entities that you can "move" your stuff into in order to pretend to the government that it's not yours anymore You make it sound like this was something invented by tax -dodging capitalists getting one over on the government. But in reality the only reason paper entities exist at all is because government wills it so.
- deleted 4y ago[deleted]
- RestlessMind 4y ago> because government wills it so. And now you make it sound like tax-dodging capitalists have no influence over a government's will. Welcome to the world of Citizens United, lobbying and such.
- NotYourLawyer 4y ago10 million dollars is not that much money.
- strken 4y agoThe problem with this is it basically just bans everyone from owning a company, and/or puts a limit on the growth of their company. Maybe you want that, but it's going to have weird implications around divesting wealth before the government can get to it and/or disincetivising companies to grow beyond a certain point.
- jjeaff 4y agoThe problem with those super high rates now is that the super wealthy will just move overseas and renounce their citizenship. So you have to get other countries on board, the super wealthy are far too mobile.