Note that property taxes, when reassessed every 10 years or so, are also adjusted with changes to the mil rate, as appropriate to keep taxes from property assessment changes from causing people to leave town.
Equities change in value daily. How should those be assessed, and what is the proper response when the equities decrease in value by 30% during a market crash? Does the government refund the previously paid taxes? What if that money is your retirement income?
At what point does a tax on equities essentially become a continuous draw-down of wealth on the same money year after year, resulting in absolutely no incentive to invest in business and for that matter a situation where it is impossible to build up any wealth? How will startups be funded? How will large, shoot for the stars projects be funded?
i guess what i’m saying is that yes, we do need a drawdown of wealth. we then need to find ways to redistribute it to those of us who are not hoarding dynastic fortunes.
billionaires should not exist. there is no reason for us to allow them to sit on such piles. nothing good comes of concentrating all the worlds resources into a small owning class.
At what point does a tax on equities essentially become a continuous draw-down of wealth on the same money year after year, resulting in absolutely no incentive to invest in business and for that matter a situation where it is impossible to build up any wealth? How will startups be funded? How will large, shoot for the stars projects be funded?
That’s actually the point: use taxes to force rich people to make high risk investments.
If you can’t figure out how to turn enough profit on your farm to pay the property taxes, then you sell your farm to pay the taxes and someone else gets to put the capital to better use.
If you can’t figure out how to turn enough profit on your $10B company to pay the wealth tax, then you have to sell enough of it to pay the tax, and someone else gets more say in how the company runs.
Wealth tax encourages people with ungodly fortunes to make bigger, more risky bets, because they have to overcome the constant drain of wealth tax. Ultra-wealthy shouldn’t just coast along on the low returns of super-safe investments, because those are the people who can afford to lose part of their fortune.
Instead, we have the guy with $1000 YOLOing his life savings on GME options, because the $80 he can get from an index fund isn’t going to get him to retirement, while Berkshire Hathaway is sitting of $300B of US treasuries.
Note that property taxes, when reassessed every 10 years or so, are also adjusted with changes to the mil rate, as appropriate to keep taxes from property assessment changes from causing people to leave town.
Equities change in value daily. How should those be assessed, and what is the proper response when the equities decrease in value by 30% during a market crash? Does the government refund the previously paid taxes? What if that money is your retirement income?
At what point does a tax on equities essentially become a continuous draw-down of wealth on the same money year after year, resulting in absolutely no incentive to invest in business and for that matter a situation where it is impossible to build up any wealth? How will startups be funded? How will large, shoot for the stars projects be funded?
don’t worry cousin. your ships gonna come in someday and all the fretting about taxing the rich will be worth it.
I don’t understand what you are saying. For one thing, I’m not fretting about taxing the rich.
i guess what i’m saying is that yes, we do need a drawdown of wealth. we then need to find ways to redistribute it to those of us who are not hoarding dynastic fortunes.
billionaires should not exist. there is no reason for us to allow them to sit on such piles. nothing good comes of concentrating all the worlds resources into a small owning class.
That’s actually the point: use taxes to force rich people to make high risk investments.
If you can’t figure out how to turn enough profit on your farm to pay the property taxes, then you sell your farm to pay the taxes and someone else gets to put the capital to better use.
If you can’t figure out how to turn enough profit on your $10B company to pay the wealth tax, then you have to sell enough of it to pay the tax, and someone else gets more say in how the company runs.
Wealth tax encourages people with ungodly fortunes to make bigger, more risky bets, because they have to overcome the constant drain of wealth tax. Ultra-wealthy shouldn’t just coast along on the low returns of super-safe investments, because those are the people who can afford to lose part of their fortune.
Instead, we have the guy with $1000 YOLOing his life savings on GME options, because the $80 he can get from an index fund isn’t going to get him to retirement, while Berkshire Hathaway is sitting of $300B of US treasuries.