Not likely. First of all, the net worth numbers you see for these ultra-wealthy people are all educated guesses. To actually legally impose anything based on total net worth, you need to actually audit net worth and get a real figure. The resources it would take to do this are very unlikely to yield more tax revenue than they cost, especially because there is so much one can possess whose value is pretty much completely arbitrary (the high-end artwork, etc.).
It’s actually all-but-certain it’d be a net loss of tax revenue. There is a reason that every time such a policy targeting only the wealthiest is put into place (it’s been tried numerous times over the years in a bunch of European countries), it’s gotten rid of soon thereafter, or ‘dialed down’ to be just another ‘mundane’ tax that falls primarily into the lap of the middle class.
To actually legally impose anything based on total net worth, you need to actually audit net worth and get a real figure.
So, what’s wrong with that? You have a wealth tax on all wealth over $100 million. If you have wealth anywhere over say, $50 million, you hire an accountant to assess your business’s value. Everyone with that level of wealth already hires accountants. It’s a trivial additional burden. If your wealth is no where near the tax threshold, you don’t need to bother hiring an accountant to get a precise figure.
There is a reason that every time such a policy targeting only the wealthiest is put into place (it’s been tried numerous times over the years in a bunch of European countries)
I’m calling bullshit on this. There are all sorts of taxes that fall heavily or solely on the wealthy. The reason the wealthy don’t all leave is that they don’t actually want to live in places that have low taxes. You can get low taxes in a war-torn hellhole, but most don’t actually want to live like that.
Accepting your premise as true, that still doesn’t make the tax valueless. The real value in a wealth tax is breaking up the money from individuals, the revenue is just a bonus. Even if it is all used to pay the accountants, that’s still money that’s now actually moving through the economy rather than zombie wealth sitting in some rich fuck’s paws, doing nothing but contribute to inflation.
Do you consider Switzerland to be a European country. It has had forms of wealth tax for centuries, and the current tax generates roughly 4% of Switzerland’s total revenue. It seems to work just fine there.
Would making the law kick in after a certain amount of net worth be the answer in that situation?
It’s almost like we have that exact system in place for income.
Not likely. First of all, the net worth numbers you see for these ultra-wealthy people are all educated guesses. To actually legally impose anything based on total net worth, you need to actually audit net worth and get a real figure. The resources it would take to do this are very unlikely to yield more tax revenue than they cost, especially because there is so much one can possess whose value is pretty much completely arbitrary (the high-end artwork, etc.).
It’s actually all-but-certain it’d be a net loss of tax revenue. There is a reason that every time such a policy targeting only the wealthiest is put into place (it’s been tried numerous times over the years in a bunch of European countries), it’s gotten rid of soon thereafter, or ‘dialed down’ to be just another ‘mundane’ tax that falls primarily into the lap of the middle class.
So, what’s wrong with that? You have a wealth tax on all wealth over $100 million. If you have wealth anywhere over say, $50 million, you hire an accountant to assess your business’s value. Everyone with that level of wealth already hires accountants. It’s a trivial additional burden. If your wealth is no where near the tax threshold, you don’t need to bother hiring an accountant to get a precise figure.
I’m calling bullshit on this. There are all sorts of taxes that fall heavily or solely on the wealthy. The reason the wealthy don’t all leave is that they don’t actually want to live in places that have low taxes. You can get low taxes in a war-torn hellhole, but most don’t actually want to live like that.
Accepting your premise as true, that still doesn’t make the tax valueless. The real value in a wealth tax is breaking up the money from individuals, the revenue is just a bonus. Even if it is all used to pay the accountants, that’s still money that’s now actually moving through the economy rather than zombie wealth sitting in some rich fuck’s paws, doing nothing but contribute to inflation.
Do you consider Switzerland to be a European country. It has had forms of wealth tax for centuries, and the current tax generates roughly 4% of Switzerland’s total revenue. It seems to work just fine there.