| I don't know the answer here. But this analysis includes a "comprehensive measure of their income that includes income from unsold stock". Should unsold stock (or land value) gains be taxed? A couple of problems I can think of: Fluctuations in stock values. From 1986 yo 2019 stocks have increased up to 37% and decreased by up 22% in a year (1). Dillution of ownership:
If you taxed stock values over time, founders would have their ownership rate dilluted over time. Is it desirable to have founders automatically lose their majority share over time? e.g. I'm thinking of the effect of a 3% wealth tax. The analysis doesn't include company taxes:
If a company is taxed at 21% of it's profits. Should this count towards the tax paid by the richest? Should investments in capacity/capital be taxed at the same rate as profit. Often a company increases in value as it reinvests its income in productive assets. Should that be encouraged and given a tax break or not? My current thinking is the 20th century system worked well before companies with strong network effects started making monopoly type profits and globalization allowed companies to invest surpluses outside of their home markets changed the game. (1) https://www.thebalance.com/stock-market-returns-by-year-2388... |