alt Hacker NewsIsn't it just so much easier to make sure that wealth isn't concentrated in so few hands? Tax wealth, not work.
And before everyone gets upset, tax serves two purposes; 1) control inflation (it in effect burns money that was issued when the govt previously paid for things), 2) disincentivises selected behaviours. and one side effect, when the govt runs a tax deficit it increases inflation, and of course the contrapositive is also true.
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> Isn't it just so much easier to make sure that wealth isn't concentrated in so few hands? Tax wealth, not work.
1. No, it's not "easier" because it's hard-if-not-impossible to accurately and objectively judge the present-value of many types of assets. Even the case most-familiar to working-class folks, property taxes, nobody really likes/trusts the outcome.
2. We don't tax work, we tax income, because actual transactions between people with "skin in the game" are harder to fake. The extent to which wages are preferred as a subset of income is separate from the wealth-vs-income split.
Isn't it just so much easier to make sure that wealth isn't concentrated in so few hands? Tax wealth, not work.
Those tax dollars just go back to the wealthy in the form of interest payments on government bonds, which they own.
Sure, it’s easy to tax “wealth”. Except most wealth today is of the type where Alice owns 10 million Y and Bob decided to pay $1000 for one Y. Alice cannot possibly sell her Y for near that price, but now she will be taxed on “wealth” of $10 billion.
With wealth concentrated in so few hands, it's already not that easy to walk it back :-/
It would be so nice of that tax was actually "burned"(similar to proof of stake), instead of being used to fund even greater inflation. This comes in the form of a huge administration, which gets payed for providing, many times, negative value. Alternatively, it is used to pay social benefits for the sole purpose of keeping the current political party in power.
> Isn't it just so much easier to make sure that wealth isn't concentrated in so few hands?
Except for the fact that, without first solving the problem you responded to, yours is impossible to solve
Wealth tax will just create an industry around hiding wealth for the rich
This wouldn't stop the AMA from controlling medicine.
This is overly simplistic. Most economic activity is not related to the government at all. Taxation can slow economic growth and inflation, but the government running at a deficit or surplus is neither a cause or a solution for inflation but rather a byproduct of multiple aspects of government policy.
Wealthy people own assets, not money. Stealing their assets doesn't reduce the money supply. Elon Musk is "rich" mainly in paper wealth.
Taxes raise inflation as they increase the production costs. If you tax too much wealthy people, they will leave, and take their capital away to invest it elsewhere. This as a result will lead to inflation due to lack of available capital for production.
Since when has raising taxes actually solved any major problem? We have enough taxes, the issue is the corrupt politicians swindling it to themselves and their cronies.
> control inflation
I think you are confusing cost inflation with an increase in the money supply. The way the US government funds deficit spending is not by increasing money supply (though it could) but by issuing debt in the form of US Treasury bonds. That is a transfer of money from bond investors to the government. No new money is made. This is distinct from the way that banks issue loans which is by creating new money in the form of credit (but that credit money gets "burned" as loan principal is paid back). So federal taxes do not actually control inflation in the way you are describing. Since federal deficit spending is not financed by increasing the money supply, it can only cause price inflation if it increases aggregate demand over the current productive capacity of the economy. An example would be paying more for healthcare subsidies when there's a shortage of doctors. Or subsidizing demand for housing with more mortgage subsidies when there's a housing shortage. Taxes could also increase inflation if they have the effect of reducing supply of some goods or services (like tariffs do).
Edit: I want to mention that the Federal Reserve can and does increase money supply by buying US Treasury Bonds from banks (converting the asset into cash reserves). There are various reasons why they do this but overall it's done with their dual mandate in mind: control inflation and minimize unemployment.