If you start a successful startup in your twenties, a 2% wealth tax with a $50 million threshold means that over the course of your life the government will take 65% of your stock. Why so much? A wealth tax compounds. http://paulgraham.com/wtax.html
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So what? Your home is taxed the same way, and it hasn't stopped people from investing in homes, nor has it dragged prices down.
The price at which you buy a house already reflects the tax rate.
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And it hasn't stopped people from buying, building, or profiting on real estate. Why have a wealth tax that primarily impacts the middle class through real estate taxes, but not on extreme wealth?
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Exactly. A progressive logarithmic wealth tax is exactly the rational ideal.pic.twitter.com/QQGOxH5Bel
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Right, if you put a new tax on a house tomorrow, the person who pays it is the current owner. When she sells it, she has to discount it by the net present value of the future tax revenues. So the next owner effectively doesn't pay it.
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True. And future prices for startup equity would presumably reflect new wealth taxes if we did them (hard to imagine; so hard to monitor). So the incidence would mainly be on people who already hold startup equity, whose motivation to start things is already acted upon...
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Wouldn't it also impact those who haven't started? The payout that you will get will likely be reduced by the wealth tax (factored into equity price). Taking a risk for a smaller payout may or may not dissuade you from leaving a guaranteed paycheck.
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Dang look at paul Graham arguing it's okay for the rich to never care about anyone else and to steal all the time. Good job bro satan loves you. We are coming for your assets.
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Pretty sure Satan loves furry pornographers more than people who actually make a positive impact on the world
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And land is scarce, so property tax has an incentives benefit too. (Use it or sell it!) Startups are unbounded.
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Okay, and the zero dollars that founders pay for shares in their own company could similarly be marked down to compensate for the tax.
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The price at which you by a house these days is dominated by speculative investment
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