Re:Majority of Americans favor wealth tax on very rich: poll
by DuskStar on Friday January 10, 2020 @02:53PM
(#22014697)
If we were behind the veil of ignorance, I think most economists would choose a consumption tax of some sort as that's both the least distortive and one of the easiest to administer, with transfer payments added on top to achieve the desired level of 'progressiveness'.
Wealth taxes only really make sense if you want to hurt the rich, NOT to raise revenue. (Well, strictly speaking a one-time, no-warning, credibly-promise-to-never-do-it-again wealth tax is a good way to raise revenue. But governments can't credibly promise such things)
If everyone were behind a veil of ignorance and had to craft a just tax system without knowing whether they, themselves, would end up as poor or rich in such a system, would they nevertheless agree that those who are extreme outliers in terms of their wealth should contribute more?
My guess is that this proposal probably passes the veil of ignorance test.
Which is not to say that it couldn't have its downsides, or that reasonable people couldn't offer very good objections to it.
But by definition, a question of higher taxes on a tiny portion of extremely wealthy individuals is going to involve putting the question to people who, with rare exception, aren't going to be subject to the tax.
But that doesn't necessarily mean their decision is unfair.