4 ms·
So disincentive saving to a ridiculous degree? If you managed to spend every single cent you earned you'd pay no taxes. Save or invest anything for the future p
by qwytw 4y ago
So disincentive saving to a ridiculous degree? If you managed to spend every single cent you earned you'd pay no taxes. Save or invest anything for the future pay a 80% tax on it (you have to compensate all the lost revenue somehow...).
It does sound like a great way to increase consumption and short term GDP growth...
Different people have different consumption patterns. Corporations are incentivized to maximize profit (shareholders want a return), individuals are not...
- catlifeonmars 4y agoIn this hypothetical scenario, the enforcement of saving could be offloaded to the government. I mean, people are already particularly bad at it.
- qwytw 4y ago> I mean, people are already particularly bad at it. Some people are. I don't think that applies to the majority of people who can afford to save though. > the enforcement of saving could be offloaded to the government Yes, let's also abolish private property. That sure worked out great...
- blitzar 4y ago401ks / pensions / other government approved savings schemes all over the world already exist - they are normally income or tax deferred. Generally they work well, especially relative to people's normal savings efforts.