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by JDiculous 2985 days ago
Wealth inequality is extremely easy to solve - raise taxes on the rich (as well as rent-seeking). The problem is that our politicians, especially conservatives (though liberals are in on it too), have no integrity in this regard. We just need to stop voting in people who won't raise taxes on the rich.

* By the rich, I'm not referring to the doctors, engineers, and lawyers in the upper middle class, I'm referring to billionaires

2 comments

Yeah and global warming is easy to solve, all you need to do is get everyone on board...

Capital, like water, takes the path of least resistance. There's ample academic literature which shows and explains international tax competition exists, we can't pretend it doesn't. Any country that increases taxes just signals to the increasingly mobile tax base that they ought to go somewhere else. And tax coordination, i.e. countries agreeing on minimum tax levels, is an incredibly difficult political problem. You're literally putting the heart of a country's budget on the negotiation table, it doesn't get more political.

As such, it's not at all extremely easy to solve. It's not just an issue of integrity, it's also an issue of international politics.

It's not an issue of international politics for a country like the U.S. to raise their own taxes. It's literally a matter of tweaking numbers. Of course there would be side effects if U.S. raised them too much or in the wrong way (eg. targeting small business owners instead of billionaires), but we're not even close to that point. Overcomplicating this is just rationalizing the status quo.
Did you notice that those conservatives and liberals are wealthy, or have wealthy backers? Have they been aggressive in raising taxes on the wealthy? Why do you suppose that is?