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Two questions: 1. How will this help with wealth that's already accumulated? I get how this will slow further accumulation. 2. How about capital flight? If th

by girmad 12y ago

Two questions: 1. How will this help with wealth that's already accumulated? I get how this will slow further accumulation. 2. How about capital flight? If the US enacts a policy like this, what stops the super rich from moving to other countries?

pgodzin 12y ago
I believe the goal is some kind of universal basic income, where the developed countries affected by these changes provide similar benefits. Of course, no matter what the solution is, political and social structures will have to change drastically to accommodate this kind of change in the world.
frandroid 12y ago
1. Inheritance taxes are one part of the solution. Capital gains taxes are another. 2. Make the right to conduct financial transactions contingent on one being part of a global financial network which abides by a specific set of taxation rules. This can take many forms. The U.S. in particular is well-placed to initiate and control such a system. However, considering that Wall Street has captured Congress, I doubt the U.S. will come anywhere close to this in the first place.
estebank 12y ago
1. You're assuming redistribution wouldn't happen through heavy taxation of existing capital and property, like France's wealth tax[1], where you pay when your worldwide net worth is above 1,300,000€. 2. The US taxes citizens regardless of where they live[1], and in the case of renouncing the US citizenship it is required you pay an exit tax[2] equivalent to the capital gains of selling all your property when above $680,000. [1]: http://www.french-property.com/guides/france/finance-taxation/taxation/wealth-tax/ http://www.french-property.com/guides/france/finance-taxatio... [2]: http://hodgen.com/does-the-united-states-stand-alone/ http://hodgen.com/does-the-united-states-stand-alone/ [3]: http://www.irs.gov/Individuals/International-Taxpayers/Expatriation-Tax http://www.irs.gov/Individuals/International-Taxpayers/Expat...
jnbiche 12y ago
Two very good questions, but my ideas about those go way off topic. But with respect to question 1, the most important response is that we can't let the sunk cost fallacy stop us from adopting good ideas.

by girmad 12y ago

pgodzin 12y ago

I believe the goal is some kind of universal basic income, where the developed countries affected by these changes provide similar benefits. Of course, no matter what the solution is, political and social structures will have to change drastically to accommodate this kind of change in the world.

frandroid 12y ago

1. Inheritance taxes are one part of the solution. Capital gains taxes are another. 2. Make the right to conduct financial transactions contingent on one being part of a global financial network which abides by a specific set of taxation rules. This can take many forms. The U.S. in particular is well-placed to initiate and control such a system. However, considering that Wall Street has captured Congress, I doubt the U.S. will come anywhere close to this in the first place.

estebank 12y ago

1. You're assuming redistribution wouldn't happen through heavy taxation of existing capital and property, like France's wealth tax[1], where you pay when your worldwide net worth is above 1,300,000€. 2. The US taxes citizens regardless of where they live[1], and in the case of renouncing the US citizenship it is required you pay an exit tax[2] equivalent to the capital gains of selling all your property when above $680,000. [1]: http://www.french-property.com/guides/france/finance-taxation/taxation/wealth-tax/ http://www.french-property.com/guides/france/finance-taxatio... [2]: http://hodgen.com/does-the-united-states-stand-alone/ http://hodgen.com/does-the-united-states-stand-alone/ [3]: http://www.irs.gov/Individuals/International-Taxpayers/Expatriation-Tax http://www.irs.gov/Individuals/International-Taxpayers/Expat...

jnbiche 12y ago

Two very good questions, but my ideas about those go way off topic. But with respect to question 1, the most important response is that we can't let the sunk cost fallacy stop us from adopting good ideas.