3 ms·
> 2. We don't tax work, we tax income, because actual transactions between people with "skin in the game" are harder to fake. Also because taxing income (or ot
by astrange 8mo ago
> 2. We don't tax work, we tax income, because actual transactions between people with "skin in the game" are harder to fake.
Also because taxing income (or other cash) is disinflationary. Taxing assets is inflationary because it forces sales.
- jhasse 8mo agoShouldn't sales reduce inflation because they increase supply?
- astrange 8mo agoSelling things increases money velocity.
- usefulcat 8mo ago> Taxing assets is inflationary because it forces sales. I can see how taxing assets could result in more selling than would have occurred otherwise. But all else being equal, an increase in selling tends to put downward pressure on prices. So I don't see why an asset tax would be expected to cause inflation.