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by zzzcpan
2408 days ago
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> then you just gave the wealth a 3 billion dollar incentive to leave before your tax can come into effect You can impose tax on leaving bigger than 3 billion dollars effectively removing leaving incentive. Also you are assuming they are fluid and actually can leave and stay wealthy somewhere else, which is likely not the case for most of the wealth on the planet. |
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In the US, the country in question, you'd have some constitutional problems with that plan. That's a bad thing; you need this wealth confiscation to be clearly legal, because you have incentivized billions of dollars worth of legal expenditure to prevent it from happening. (There's those nasty incentives again.)
Also, it turns out that demonstrating to the entire world that you'll just take whatever you want, whenever you want, and punish anyone who tries to protect themselves from that, doesn't exactly incentivize a healthy business environment or encourage the kind of investment you need to create the wealth that you need to bring inequality down by bringing most people up. People need predictability to make plans for the future; this sort of thing extremely strongly incentivizes even shorter term planning than we sometimes get, because nobody knows whether you're going to come along and take most of their stuff tomorrow, or even retroactively. It's not a good plan to create a wealth-producing society.
It's really, really easy to "solve" the wealth inequality problem by simply destroying all (or almost all) wealth, everywhere. It's been done in several countries in the past century. It's not usually the solution people want when they're talking about wealth inequality... oh, they might take a small hit in spite if they knew it was really going to stick it to those "wealthy fat cats", but for the most part, people expect the end of "wealth inequality" to increase their own wealth, not destroy it.
"Also you are assuming they are fluid and actually can leave and stay wealthy somewhere else, which is likely not the case for most of the wealth on the planet."
It is the case for the sort of wealth we are talking about, though. Yes, you can indeed tax the lower and lower-middle classes very hard, because they tend to be unable to move. Not exactly a "wealth" tax anymore, though, is it? Billionaires can move wealth. After all, if we're talking a 75% confiscation rate, it's worth it to move overseas even if they take a 50% bath. Billions of dollars worth of incentives cover a lot of things.