Statistically, you're a country of dodgers https://www.nber.org/papers/w22376
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Replying to @webdevMason @kevinschawinski
The Swiss wealth tax is coupled with relatively modest income taxes, though they vary from canton to canton. *Replacing* a part of the total tax burden with a wealth tax might make sense. *Adding* it to existing taxes is something else.
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Replying to @Supreme_Owl_FTW @kevinschawinski
Yep, note that the US & Switzerland have similar tax revenues as a % of GDP (1st graph) & that the US's revenue from income is higher (2nd graph). Also: the US also has *higher* revenues from tax on property (3rd graph) already! We just tax it when it moves (gifts, inheritance)pic.twitter.com/K2fYag7ExD
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Replying to @webdevMason @Supreme_Owl_FTW
My point is really that wealth taxes are not inherently destructive. Switzerland offsets the wealth tax by not having capital gains tax.
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Replying to @kevinschawinski @Supreme_Owl_FTW
Sure — ultimately, governments need revenue; one way or another they have to extract it from citizens earning & holding wealth. Any policy creates economic disincentives. The devil's in the details, though: you have to notice when you're taxing the same pool over & over
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Replying to @webdevMason @kevinschawinski
The Swiss seem to have a better grasp than most on taxing the right stuff to balance public interest with private economic incentives.
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Replying to @Supreme_Owl_FTW @kevinschawinski
Any particular reason you say so?
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Replying to @webdevMason @kevinschawinski
Low income taxes, no capital gains tax, highly taxed dividends, wealth tax. "We want a dynamic economy, but not idle capital", IMO.
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Replying to @Supreme_Owl_FTW @kevinschawinski
The capital gains vs. wealth tax thing is interesting to me. I'm not an economist, but... while taxing wealth that's actively earning vs. sitting around seems generally good, it's hard to get over the disincentive to invest anywhere you won't see returns for a while, no?
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Replying to @webdevMason @kevinschawinski
Let me ponder this for a while, gazing at the distant mountains out of my window while sipping espresso, stroking my chin and guiltily vaping...
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I'm curious about this. I get the sense that it probably depends on what's going on w/ loan interest rates? Like, as long as I can borrow at a low rate to pay my taxes, I won't have to sell my assets at inopportune times. High/unstable rates might force me to hold more liquidity
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That said, I dunno how this helps founders who really need to hold onto their controlling interest in their companies. They're not looking for a better time to sell; they're in it for years, decades, possibly life. Obviously not an edge case, super significant to the US economy
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Replying to @webdevMason @Supreme_Owl_FTW
Swiss politics is aware of this and many cantons are introducing measures to not tax early-stage startups at hopeful valuations. You really only get hit with the full wealth tax on your stake once the company makes Real Money.
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