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by dangles
928 days ago
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Income tax has no impact on already accumulated wealth. Increasing income tax to target wealth accumulation only makes it harder for high earners who aren't currently wealthy to become wealthy, it has little impact on the already wealthy. A person earning $1 million a year passively from accumulated wealth is much better off than a person earning $1 million a year in income, with no accumulated wealth. The former doesn't have to work at all and can continue earning that income indefinitely, while if the latter stops working there income drops back to zero. Breaking up dynastic wealth with an actual robust inheritance tax and taxing very high earnings derived from wealth (e.g. capital gains) will be much more effective than higher income tax. |
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