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> Wealth taxes require liquidating investments early it works for RE already without liquidation > . I would opt for a tax on loans instead (you have to prepa
by andriy_koval 18d ago
> Wealth taxes require liquidating investments early
it works for RE already without liquidation
> . I would opt for a tax on loans instead (you have to prepay tax on loans that use investments as collateral and no more step up in basis on death).
rich just will move from this scheme to something else, and nothing changes.
- seanmcdirmid 18d agoThe rich will just move to a different country, negotiate with a Swiss canton for a fixed sum tax. I don't see how a tax that punishes wealth is sustainable, the wealth will just go somewhere else. Maybe if we had a world government or something.
- andriy_koval 18d agoUS currently hold enough power to make them paying their debts oversees too. Also, I think it is equilibrium of interests of all involved parties: rich pay 0.5%/y of wealth tax, population is healthier, country is stronger and protects interests and safety of rich. The problem is mostly to make them realize this.
- seanmcdirmid 18d ago> US currently hold enough power to make them paying their debts oversees too. The US is increasingly a less relevant country every year. With a wealth tax, yes, all those Americans will have their wealth eventually confiscated (0.5% a year will add up quickly year after year, investments will unwind so wealth will stop accumulated, and eventually it's gone), but I doubt the rest of the world will care and just move on and decide crazy things that happen in the US are like the crazy things that happen in Iran.
- andriy_koval 18d ago> With a wealth tax, yes, all those Americans will have their wealth eventually confiscate US already have 0.5-1.5% property tax, no one calls it confiscation.