higher wealth tax and lower or at least not 90% income tax is likely the best way to make capital more efficient. the quasi-libertarian in me doesn’t love the idea of the government knowing every little thing about every single citizen (necessary to effectively tax wealth) but i like the idea of combating dynasties/legacies and motivating all to work towards something productive in life.
the funny thing is that the US is the absolute worst with respect to taxing dynasties/legacies and is also the biggest champion of promoting a supposed meritocracy. at the very least, if you want to avoid a wealth tax, y’all need to get rid of unique US tax advantages like inherited IRAs and incredibly low taxation of capital gains and dividends, at least for rich folks. the day of reckoning is coming, perhaps sooner than expected given interest rates are looking like they’re going to be negative everywhere at some point meaning every pension plan will be wildly underfunded and every life insurance company will be insolvent, not to mention how negative rates would affect SS sustainability.
the upside of negative rates is while the rich will need to be taxed more to somewhat maintain pension benefits for the underclass, they will be paid to take out jumbo mortgages like they do in Europe. the rich can just take out a mortgage and stuff the cash in a safety deposit box and make risk free dough. only risk is the bank gets raided by the underclass.
hopefully they stop forcefeeding the alm model when they go bust.
bust down thottiana. i wanna see the bust down!
I love my cheese. I got to have my cheddar.
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