Re:Money can buy happiness, but not unconditionally
by barrkel on Sunday October 28, 2018 @03:11PM
(#18322356)
Progressive taxes focus on income, not on wealth.
Very few people get wealthy from income (in part because it's taxed so heavily). Usually, wealth comes from capital growth.
Wealth taxes focus on wealth. Unfortunately, it's very hard to reliably tax wealth because making wealth tax efficient is highly incentivized at every level: not just offshore vehicles, tax exiles etc., but also governments trying to encourage investment effectively subsidize wealthy people increasing their wealth.
Very few people get wealthy from income (in part because it's taxed so heavily). Usually, wealth comes from capital growth.
Wealth taxes focus on wealth. Unfortunately, it's very hard to reliably tax wealth because making wealth tax efficient is highly incentivized at every level: not just offshore vehicles, tax exiles etc., but also governments trying to encourage investment effectively subsidize wealthy people increasing their wealth.