• @pingveno@lemmy.ml
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    1 year ago

    This has been tried before (or rather, a wealth tax). It turns out to be extraordinarily difficult to administer, especially when people start owning a mess of companies or artwork that has to be appraised. It turns out that movement of money is the easiest thing to tax since it is an objective value.

    A cliff like this also distorts behavior because people don’t want to loose a bunch of wealth if they go over in one year. Imagine having one great year where your company doubles in value to $2 billion dollars, but the next year there is a crash and it halves in value. You personally are down to 0.5 billion, less than you started. Tax policy should make it difficult to remain obscenely wealthy, but not impossible.

    • @agarorn@feddit.de
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      11 year ago

      Sure, it is complicated. But there are only so many billionaires. My countries spends way more resources on controlling the poor than a billionaire wealth tax would ever cost.

      • @pingveno@lemmy.ml
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        11 year ago

        My recollection is that it costs nearly as much to administer as it provided. At a certain point, there’s just not much point.