3 ms·
Isn't a wealth tax just an expanded capital gains tax? If last year I had wealth X and this year I have wealth X+Y, I have to pay a wealth tax on the gains, in
by drdec 10mo ago
Isn't a wealth tax just an expanded capital gains tax?
If last year I had wealth X and this year I have wealth X+Y, I have to pay a wealth tax on the gains, in addition to the the tax on the amount I had previously.
So my gains are still taxed.
- mike_hearn 10mo agoThe big differences are: - Wealth tax is much lower, think a percent of your wealth or less vs 20% of your gains. - You can avoid wealth tax by spending. If you sell a bunch of shares to earn $100k then take a year off to see the world, you pay no tax on that (other than sales taxes etc). - In practice a lot of things aren't covered by wealth tax. If you spend on a fancy new TV it's not measured. Only the big ticket items are wealth taxed (houses, financial assets, art, cash piles, etc).