Re:Modeling a Wealth Tax
by chii on Tuesday August 18, 2020 @11:50AM
(#24200144)
> Its different from other taxes, that tax an interchange with another person or entity.
yes, taxing transactions between entities makes sense, because transactions is where wealth (or value) is generated.
Taxing accumulated wealth does not make for a good policy, since this erodes stored wealth. Unless it's somehow paired with a reduction in other taxes (and thus defeat the point of the wealth tax in the first place as a way to levy more revenue to the gov't).
This is why a consumption tax is, in my opinion, the best kind of tax.
yes, taxing transactions between entities makes sense, because transactions is where wealth (or value) is generated.
Taxing accumulated wealth does not make for a good policy, since this erodes stored wealth. Unless it's somehow paired with a reduction in other taxes (and thus defeat the point of the wealth tax in the first place as a way to levy more revenue to the gov't).
This is why a consumption tax is, in my opinion, the best kind of tax.