4 ms·
Consumption is a very bad proxy for wealth, even worst than income. If you live hand to mouth, you get taxed on 100% or your wealth. If you make $100M a year a
by amunicio 12y ago
Consumption is a very bad proxy for wealth, even worst than income.
If you live hand to mouth, you get taxed on 100% or your wealth. If you make $100M a year and have $10B in the bank, you only get taxed on the $15M or so that you spent this year.