The reason why the amount was 200K in USD was that then 5 Finnish marks was 1 USD or so, hence that 200K was 1 million Finnish marks. Hence the tax was deliberately a tax on millionaires. If you got wealth worth a million FIM, why shouldn't you pay? Millionaires ought to pay wealth tax!!! And now a labour union would introduce a wealth tax on everything over 100K Euros with the exception, of course, of one's home. Simple reason, the vast majority of people don't have wealth over 100K besides their home.
And let's make another thought experiment: Let's assume that everybody had to pay a wealth tax. So if your unemployed and your home is foreclosed, but you still have this minibus (that the government decides is worth 9K) where you sleep, well, have to pay 90$. Wouldn't that sound fair? — ssu
I get what you're saying, but I'm not interested in
over-taxation. You're making a slippery-slope argument that cannot aptly be applied to Bernie's plan. Yes, wealth taxes have been poorly coded and implemented in the past, and failed, and yes it would be a bad thing to burden the poor even more than they already are...
Accounting for some amount of inflation, a similar figure to Bernie's opening number would be nearly 100 million Finnish marks (Shirley would have a hard time drumming up sympathy at that level). I agree with the principle that it is unproductive to tax existing wealth, but after a certain threshold of wealth concentration, it becomes unproductive
*not* to tax it. The earning power of the middle and lower class isn't going anywhere, while corporate and upper-elite profits have never grown faster.
In short, sometimes when we let the chips fall where they may, things get so screwed up that we need a do-over, whether by vote or by force. Once Besos has a personal wealth of over 1 trillion dollars (probably will never happen because he will start giving it away to charities and causes of his choosing), would you agree with me then?
If we one day find ourselves utterly without lands and viable livelihoods due to the extraordinary concentration of ownership, would you participate in efforts to redistribute wealth? I know this sounds outlandish, but as automation and AI advance, human labor is fast becoming uneconomical. What will we do once Amazon and Walmart no longer require
human associates to operate their businesses? Yang proposes a universal basic income (after-all, people people buy less stuff as unemployment and underemployment rise) so that we can carry on existing as we are now, but Bernie's plan seems more direct.
If not wealth redistribution, then what? Even if we amply apply anti-trust measures to the corporations that are essentially more powerful than some nation states, there's still no promise that wealth owned by them will trickle down to the rest of us. I get that impeding on individual ownership rights is a serious action, but I see no other remedy. Wealth creation is not a zero sum game, but it is not an infinite sum game either. In Finland you have universal healthcare, but American's don't. Raising taxes on everyone could pay for it, but this would diminish the earnings of the bottom class even further. A wealth tax on the
actually rich could pay for it, among other things (such as education). Is there really so big a difference between slowing the flow of gold to the dragon (income tax) vs reducing the size of its hoard (wealth tax)?
I think that the tax revenues of a wealth tax would be dismal and likely be squandered of in foreign wars or in a currency crisis when the rich scramble away with their money. So it's not a great idea in my view. — ssu
Bernie's estimate is something like 4 trillion in 10 years. The rich are always going to scramble away with their money. Always. That's how most of them got rich (not by creating wealth, but by winning and keeping it better). Washington admin failures not withstanding, at least this way the middle and lower classes get
something.