Wealth Tax Stages Comeback in France

[cawacko]

Many countries in Northern Europe, including Germany, have had some good luck with an extremely high capital gains tax. It incentives not taking profits, and instead reinvesting in the business. Germany had people who would be considered billionaires today who were making upper middle class income, and so paying much lower taxes than you would expect a billionaire to pay. It did make the economies of Northern Europe less dynamic, which was harmful.

The problem with a wealth tax is it can tax people who have not taken any income from their company. Imagine an entrepreneur who invests everything he has into his startup, both work and money. The company looks good, but has not made a profit yet, so he is taking nothing from it. Someone invests $1 billion into the company for 10% of the, valuing the company at $10 billion. That billion went to building capacity for the company, so the entrepreneur got nothing at this time. The entrepreneur is still on the hook for taxes with no way to pay them.

It works better in small tax haven economies like Liechtenstein. There they are dealing with people who have liquid assets, and are happy to pay lower taxes to store them.

You shifted to capital gains which isn’t the same thing. The thread is about wealth taxes, and the fact that France, Sweden and Germany all abandoned them because they raised little revenue and discouraged investment. That’s the history.

 

[Walt]

You shifted to capital gains which isn’t the same thing.

Marginal earned income taxes are often even higher, which drives people to capital gains.

Anyway, when we are talking about wealth, there are two ways to tax it: wealth taxes, or capital gains taxes. It is a natural comparison. Do we want to tax the wealth at the time of sale, or before the time of sale.

The thread is about wealth taxes, and the fact that France, Sweden and Germany all abandoned them because they raised little revenue and discouraged investment. That’s the history.

The Romans had wealth taxes, while the Judeans had income taxes... I wonder which conquered the other.

 

[cawacko]

Marginal earned income taxes are often even higher, which drives people to capital gains.

Anyway, when we are talking about wealth, there are two ways to tax it: wealth taxes, or capital gains taxes. It is a natural comparison. Do we want to tax the wealth at the time of sale, or before the time of sale.


The Romans had wealth taxes, while the Judeans had income taxes... I wonder which conquered the other.

Dodge mode activated, my man.

 

[Nordberg]

The wealth gap gets worse and worse. In America, the millionaire's wealth went up 20 percent since Trump. When the people get pissed off , the rapid distribution of wealth is frightening. Look at the French Revolution for an example.

 

[Hawkeye10]

The wealth gap gets worse and worse. In America, the millionaire's wealth went up 20 percent since Trump. When the people get pissed off , the rapid distribution of wealth is frightening. Look at the French Revolution for an example.

COVID was the biggest wealth transfer to the top in American history I am told, but the COVID program was not Trumps, it was not his fault.

 

[cawacko]

The wealth gap gets worse and worse. In America, the millionaire's wealth went up 20 percent since Trump. When the people get pissed off , the rapid distribution of wealth is frightening. Look at the French Revolution for an example.

You refuse to answer the question I asked multiple times about why other countries repealed their wealth tax (because it failed), because what matters to you is intent and not results.

 

[Nordberg]

You refuse to answer the question I asked multiple times about why other countries repealed their wealth tax (because it failed), because what matters to you is intent and not results.

The countries that have leveled off the wealth have done so with great success. Read the Gini Coefficients and see which nations are happier. I will help. It is the Scandinavian countries and others who provide the powerless workers with a safety net and universal healthcare. Trickling a huge part of the wealth that workers create up to the super wealthy, who do not need it, but want it badly, is not a way to make a pleasant society.

 

[cawacko]

The countries that have leveled off the wealth have done so with great success. Read the Gini Coefficients and see which nations are happier. I will help. It is the Scandinavian countries and others who provide the powerless workers with a safety net and universal healthcare. Trickling a huge part of the wealth that workers create up to the super wealthy, who do not need it, but want it badly, is not a way to make a pleasant society.

You’re shifting the topic again. The thread is about the wealth tax. Multiple European countries tried the wealth tax and repealed it because it didn’t work. The question you won’t answer is why you think they will work this time.

Only you can say why you keep avoiding that question, which is the premise of what we’re discussing.