Re:California plan for wealth tax on anyone who spends 60 da...
by tsimionescu on Saturday December 19, 2020 @11:32AM
(#25478490)
> No billionaire is just sitting on their money. It’s certainly tied up in assets or being actively managed.
Not literally sitting on them, but they are certainly not spending anywhere near as much of their money as someone who makes ~1M$ a year. A large part of their wealth is usually tied up in long term investments such as property or bonds, where it is safe but not productive.
And as I said, enforcement is a real problem, capital flight being a possible consequence. I don't know exactly what the solution is, but surely there is some better balance to be struck than today. Especially if the US government wanted to - they have enough financial and diplomatic power to enforce this type of tax almost world wide, even if California or France don't.
Not literally sitting on them, but they are certainly not spending anywhere near as much of their money as someone who makes ~1M$ a year. A large part of their wealth is usually tied up in long term investments such as property or bonds, where it is safe but not productive.
And as I said, enforcement is a real problem, capital flight being a possible consequence. I don't know exactly what the solution is, but surely there is some better balance to be struck than today. Especially if the US government wanted to - they have enough financial and diplomatic power to enforce this type of tax almost world wide, even if California or France don't.