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> Politicians describe the ultra-rich as infinitely mobile, and claim that is why we can’t tax them. That doesn't sound true; high-income houses pay a dispropo
by roenxi 2y ago
> Politicians describe the ultra-rich as infinitely mobile, and claim that is why we can’t tax them.
That doesn't sound true; high-income houses pay a disproportionate amount of the tax burden and any type of corporate tax will fall disproportionately on the ultra-rich. There is a truism here that you can't tax poor people because they don't have enough money to cover the State's bills - by virtue of controlling all the wealth it is difficult to see how the very wealthy people can avoid paying most of the taxes. If they've managed to avoid classing their income as income then that'd do it, but that isn't happening because of a fiction that they are "infinitely mobile".
And more to the point I'd like to make - there is a better argument than one of mobility. People tend to have a position that high taxes are appropriate and someone else obviously has to be the one to pay them. That is one of those strategically stupid ideas where when they get what they want it tends to make them worse off (see also, the economic outcomes of socialism). The ultra-wealthy aren't benefiting personally from their money, the ability of a human to enjoy excess wealth starts to cap out practically in the millions. All that wealth and money sloshing around is being used to make the lives of fairly ordinary people better. Most of Amazon's benefits flow to the lifestyle of average people rather than Bezos' lifestyle, it just happens his dose of improvement is extremely concentrated. If the money is taxed out of Bezos, ordinary people will suffer a bigger hit before he suffers any personal inconvenience - he isn't using enough resources personally to make redistributing them important. The accounting benefits flow to him, but the physical world benefits aren't (you can check this by imagining doubling Bezos' money - his lifestyle will be unchanged so obviously he isn't reaping any benefits from that in the physical world).