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Arguments against a true Federal wealth tax

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Anarchist420

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Feb 13, 2010
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First and most importantly, it's unConfederal. Secondly, it would raise too much revenue for the national government. For another, value of real estate is subjective. Fourth, it could cause capital flight if it's extended to things other than real estate. Fifth, the values of things could be set by the elite (or some of them) and then it would do the opposite of what it intended to do, just as the income tax has done.

I can see that it could potentially raise a little bit more revenue (still, taxing the wealth of the richest 800 Americans at 10% wouldn't even come close to covering the current deficit). I don't see why progressives want to tax income rather than wealth, but I sure as hell don't want to see a wealth tax since I'm anti-progressive, anti-corporatism, and pro-laissez-faire.

I do fear that we will one day see a wealth tax in this country (well, if it survives the looming Iranian War that is). Are my fears warranted?
 

a777pilot

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Apr 26, 2011
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Income/profit and private real property are a failed and improper basis for a government revenue system in a free Capitalistic system.
 

MovingTarget

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Jun 22, 2003
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How would it raise "too much money" for the federal government, yet still not be enough to eliminate the deficit? It seems that those two criterion conflict. You do want the federal government to be able to pay its bills (before the currency value goes in the toilet), so it does need the revenue. You can't ignore either revenue generation or spending reduction in that equation. To do so is a fool's errand.

Although I will agree with you that a wealth tax does have serious problems with real estate values being highly subjective - the recent bubble being a prime example. However, property taxes have been in use on a local level since this country was founded, which have been highly successful in funding things like schools, infrastructure, etc. I wouldn't discount that type of tax completely.

In all honesty, the reason a true wealth tax will eventually be implemented is because of the trends of the past few decades. We are in the fast lane to creating a de-facto economic nobility, which is inherently dangerous for democracy.
 

Brigandier

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Feb 12, 2008
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The problem is, with the FRB, the most profitable sector is finance, and that is not good for any economy that wants real growth.

China has the correct idea, build as many factories as possible. Factories can be retooled to new conditions, financial institutions, not so much.
 
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