Leftists want to tax the wealth and capital gains of the 0.1%. They claim this can pay for all sorts of gibs with the only cost being that some billionaire loses some of the wealth he was hoarding, something he wouldn't even notice that much anyway. But the reason this doesn't work is because the vast majority of that wealth is invested in some productive business that produces goods and services for everyone. All taxing it would do is transfer resources and labor away from production of one thing and towards producing goods for the recipient of the tax revenues.
Merely forcing someone to sell some stock and give the money to some nigger to spend is not going to increase the total amount of production in the economy (in fact it reduces it due to inefficiency due to market distortion), therefore if his consumption is increasing then everyone else's must be decreasing. This happens in the form of inflation or reduced wages. However, what can be taxed is the consumption of the wealthy, such as what they spend on jets, yachts, mansions, etc. Taxing that would then result in resources being diverted from producing luxury items to producing more necessities for the poor recipients of the tax revenue. Thus the best form of taxation is a progressive consumption tax (PCT).
>But what about money used to buy stock? Unless it's an IPO, that money just goes to some kike, right? When trading stocks money does circulate from buyer to seller throughout the market but eventually it departs. It departs when it gets to an investor that either invests it directly or spends it on consumption, the former shouldn't be taxed and the latter should be.
However, keep in mind that since the wealthiest people are relatively frugal (and there aren't that many to start with), most revenue from such a tax would come from the top 25%. For context, a progressive consumption tax that has a weighted average of 20% would bring in (0.2*16.6) 3.3 trillion dollars a year (assuming no other taxes). This is a slight overestimate though as a PCT would tax only tax income that is spent on rents and mortgages, whereas the 16.6 trillion also includes inputted rents even after a home is paid off.
I'm only writing all this because the right does a very bad job at countering the commie arguments, usually just resorting to "muh tax havens" or whatever.
Isaiah Walker
Wealth is easier to hide than income. Ask the Swiss.
Hudson Carter
Why should an investment in a financial instrument be untaxed, while the acquiring of a service or product that required calories to be burned to produce it should be?
>majority of that wealth is invested in some productive business you misspelled jewish pyramid schemes
Ian Stewart
bump
Colton Smith
Investments provide the capital to produce things for others, whereas consumption selfishly takes for oneself. Though there would be a standard deduction of say 5k for what someone spends on basics like food.
You could even make the first few brackets have a negative rate, that could replace some social spending. It should only apply though if you work full-time or have an excuse for working part-time. It would be undesirable for people to work less just because their labor is being subsidized.
Ryan Rodriguez
>Investments provide the capital to produce things Wrong, the only thing investments provide is security and guarantees; in basically all cases it is pure rent seeking. >make the first few brackets have a negative rate That is an interesting suggestion, I don't 100% agree with the latter part. What is with people that work based on projects; tax rate applies while they are working, full tax rate when they have no projects
Robert Nelson
there is no advantage for society to allow more than lets say 2billion to anybody. zero upside. only downsides, multple downsides that is with assymetric negative effects of different order. with 2b i am very very generous btw.
Julian Moore
The problem is not wealth invested in some companies. The problem is the misinvestment.
People who lack leadership and insight accumulate that wealth: Therefore, we have highly intelligent people wasting their lives away to design frivolous products while others have to bury their children at age 10 from some disease that could be cured with reasonable effort. If I could have my basic needs covered on 40k in Europe, I'd do biomedical research, but I will not live in a welfare-like home. Therefore, it's AI and automotive and bullshit for me.
Zachary Clark
When you invest you are delaying consumption and directing resources to be used to produce something for everyone else. Either it's a direct investment in the form of venture capital, IPO, direct bond sale, etc. Or it is indirect in the form of buying a security; that money gets passed along the stock market until it is either spent (and taxed) or directly invested into a business. Once the business gets the cash they either use it to pay their operating expenses or purchase capital goods.
The reason people invest is for personal gain, but that is largely irrelevant until the moment they try to sell their investment and spend the proceeds on personal consumption, then you can tax it. While it is invested, there is no negative opportunity cost for everyone else.
Lincoln Ward
It's already taxed when you sell the asset via capital gains tax.
If you own stock you also pay some income tax from the divendeds.
It wouldn't be fair to tax owning something on top of that.
Jaxon Williams
I'm kind of behind this consumption tax idea because Sowell is as well. Or am I misremembering?
Julian Roberts
Furthermore the most wealthy people are rich because they own their own company.
With a wealth tax you would be basically forcing people to sell a % of their own company to pay a tax to the government.
Cameron King
You are right but modern westerners don't care fucking retards will create a wealth tax that in 10 years anyone owning a car will be paying.
The road to feudalism is more like a highway now at the speed shit is accelerating.
Anthony Torres
A progressive consumption tax would be the only tax. No income, corporate, wealth, dividend, or capital gains tax. Any money that hits your bank account is only taxed if you spend it, if you invest or reinvest it then it wouldn't be taxed.
Leo Morris
why do capitalists always assume that "business" produces something useful? has the big pharma not taught you anything?
