alt Hacker NewsI'm retired. I hope to get a 3% per year income from my savings every year after inflation and taxes. If my state implemented a 1% wealth tax on savings each year, I would go bankrupt in 20 years. I am hoping that I will live 20 years.
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A sane taxation scheme should of course be paired with a humane social safety net that could pay you a comfortable pension.
No one is proposing a wealth tax on anyone other than the ultra-wealthy. If you are in a position where a 1% wealth tax would bankrupt you, then you probably aren't someone that it would apply to.
I'm sure any wealth tax would only apply to wealth above a certain amount. For instance, inheritance tax only applies to $15mil and above. Likewise, when you sell a house the first $500K (I believe) in capital gains from the sale is tax free.
I don't think people with savings of $15mil and above (assuming that would be the cutoff) are in danger of going bankrupt in 20 yrs from a 1% wealth tax. Assuming your 3% return, they'd be earning $450,000 a year that wouldn't be touched by the wealth tax.
But why wage earners should support you by paying more taxes? Reduce your spending by 33% to keep up.
Lol, that's still totally feasible for normal FIRE/retirement situations, my understanding is that most proposals only start at $50 million or more. You can still have a super cushy retirement with $3mil+ and 3% withdrawal forever.