Re:Review: ‘The Economics of Inequality,’ by Thomas Piketty
by yummyfajitas on Monday August 03, 2015 @02:03AM
(#9994080)
Not all taxation is bad by this argument. Only demanding liquidity for taxes on illiquid transfers is.
If the government took 30% of the shares of the company in lieu of the same amount in cash, the issue would be completely resolved. There would be no reason not to invest in the business - the government takes 30% (or whatever the rate is) of shares regardless.
The problem is that turning illiquid assets into cash costs extra money.
By that argument, all taxation is bad because it diverts funds from other purposes. Yet we must pay for government services. Government is an investment; what you are saying, in effect, is that there are opportunity costs to the investment - a truth of every investment.