upvote
All of the people I mention wealth tax to give me the same two counter cases: Grandma and Elon.

I think there's no reason why a wealth tax can't be progressive. Just making up numbers here, it could be zero for your first 30 million, and rise to some palpable amount for your first billion.

This would protect granny from being taxed out of her house, and in fact would affect relatively few salary earners.

I'm not overlooking the possibility that such a tax structure could create an effective wealth cap at some level.

The problem in California is that it's very hard to change laws. Likewise in my state, where many aspects of the tax system are constrained by the state constitution.

reply
Sure. The issue I’d see is in 20 years inflation might mean that applies to almost everyone, like AMT, but that is a future us issue.

The biggest personal complaint I have is why should the government be getting more tax money when all they seem to use it for is blowing up random countries in the Middle East and spying on law abiding citizens for whatever random reason.

reply
These wealth taxes are not proposed to apply to everyone evenly, that would be a regressive tax policy. There is a wealth cutoff, most commonly proposed to be around $50M.

If grandma has $50M in her house and pension, she can afford to pay a tiny tiny tiny fraction of her wealth to make sure her grandkids still have a place to live that's not falling apart.

reply
You obviously didn't read the thing. 20% is not on wealth. The argument in the piece is that 1% on wealth is the same as 20% on income, and therefore 1% on wealth is obscene.

Please read before making replies that don't make sense in context. When I refer to 20% I'm referring the PG's characterization of a 1% wealth tax as an effective 20% income tax, not a 20% wealth tax.

reply
I read it, and was replying in context.
reply
> 20% tax on wealth

Thank god no one is talking about this, then. According to Graham, a 20% wealth tax is equivalent to a 400% income tax.

reply
Read my comment - it likely would be equivalently impossible. That is my point.
reply
Read my comment - it is completely irrelevant to the discussion being had about the linked article, and no one on the planet is suggesting a 20% wealth tax. That is my point.
reply
The argument was that it was ludicrous to say a wealth tax of x percent > income tax of x percent in actual impact, yes?

It is clearly the case if you try to apply the income tax rate as a wealth tax using concrete real world examples.

Even a 3% property tax makes it very difficult for many normal people to own those assets in many real world economic circumstances.

reply