I don’t believe donating $400 really feels that satisfying, the impact is fairly negligible in most contexts whereas donating $400k can very visibly improve a lot of lives.
I think this illustrates just how much a billion dollars is and maybe why a very small wealth tax can be used for a lot of good in society.
1. Net worth is significantly less than that (taxes + heavy philanthropy)
2. $400K donation is orders (plural) of magnitude off our actual philanthropic giving in total. This is just one donation.
isn't the accrued billion dollars what remains after a much larger amount was taxed at roughly 50%?
(of course could be spread across multiple years, but the essence remains)
How would the "very small wealth tax" be calculated, that you propose?
Most capital owned by billionaires is not taxed until it is sold, so in the case of Hashimoto and others they most likely have not paid tax on the majority of their wealth.
> How would the "very small wealth tax" be calculated, that you propose?
In the same way we calculate income tax, we make it up. Most numbers I see are between 1-3%. We could just start at 1% as that is the most conservative number.
It is possible to tax unrealized assets. We already do. For example, a property owner pays property tax based on the value of their property, even when they are not selling it.
It is possible for billionaires to borrow against their held assets. It is therefore also possible to calculate a tax on them.
How? It'll just go to the gov. budget which will be mostly used to pay for bloated healthcare, military and interest.
So many reasons why it's not a good idea to have a wealth tax. But the biggest reason is that nearly all our tax money is going to fraud. This is why our economy would BOOM if we got rid of a lot of taxes and reduced our fed/state governments a LOT. I just want roads, military and police. There is no reason why we should allow our government to be weaponized or turned into a nanny state when SO much of they money they collect is wasted.
Corporations that provide money for causes is often looked at because it's an investment. The world can learn a lot of free market capitalism, but it keeps pretending that half the people won't just DIE in communism.
It's not an equivalent. It's proportionally the same but it's completely different.
>>I think this illustrates just how much a billion dollars is and maybe why a very small wealth tax can be used for a lot of good in society.
If anything it illustrates taxes should be lower for people like Hashimoto. Giving even more money to the government instead of leaving it with people like Hashimoto will result in a huge net loss.
In many(most?) parts of the world, $400 is the equivalent of months of good salary.
I donated $6000 to a halfway house last year and that doesn’t even come close to covering a single bed for a year. If I was a billionaire I could have built an entire halfway house.
You have no way of possibly knowing this. And I bet you its not true.
I'm no longer a billionaire, partially because I paid an astronomical amount in taxes (I don't play the tax avoidance games). And partially because we're donating a whole lot more than $400K per year. This is ONE donation. We don't publicize most of our giving because it attracts armchair critics like you, and its distracting from the goals.
(I make an exception for Zig and technical things because my influence for better and worse usually is net positive for the initiative)
But, more importantly, I don't think playing these "my donation is worth more than yours" games is productive. If you want to think that way thats fine, I won't defend myself or my family any further than this post.
Thank you for your contributions! Although I sincerely request you stop making an exception for "technical things" and stop publicising all of your "giving". There are few things common between the lives that the likes of you live and those enjoyed us lowly "armchair critics". Your boundless sea of magnanimity is incomprehensible by us plebs; it short circuits my inferiour thinking apparatus and all I'll able to wonder is "But what truly is the value of Mitchell's "givings" relative to his net worth?". It's truly an unfair burden bourne by superior beings such as yourself.
Now if you invest $6000 and no one else was doing it, they would probably have created some percentage of 1 bed out of it. And if 18 other people invest $100 each maybe that's enough to complete the bed for a year. And if those altogether 19 people hear that the money went to good use, they donate again and they tell their friends. Maybe the halfway house in 10 years starts earning $25k per year and they keep costs low and the beds start increasing, they rent more space.
The government forced funding breaks it and turns it into a fake jobs program, the community funding it actually makes the service accountable.
Public spending on things that require (a) maintainance (as almost all things do) (b) are massively less functional if the investment is not sustained (as many things are) is inherently going to lead to suboptimal results. It's equally bad if private entities do this, but for one reason or another, people seem to bitch about this less, because, well "freedom" etc.
Public spending (private too!) is also bad if it creates unnecessary bureaucracies and unnecessary obstacles. This can be tricky because defining "unnecessary" requires a set of values and these may not be universally accepted.
So, if you have a government program that behaves as in your hypothetical example, then the problem is inefficiency, corruption and waste, not government.
>>I donated $6000 to a halfway house last year and that doesn’t even come close to covering a single bed for a year. If I was a billionaire I could have built an entire halfway house.
We need some mechanism to select people who makes the choice. Popularity/lying contest (politics) ain't it. People making money conducting honest business is the best mechanism we have.
Also, a lot more people (more than 1000x) have $400 to give than $400k so in a sense if people with $400 to give were all being very generous, they could amount to a lot more than what billionnaires could give.
What?
Also, donating appreciated stock avoids taxes. This donation may have come out of a donor-advised fund.
Rich people can make substantial charitable donations rather easily and make a big difference. I suggest we encourage them.
About liquidity, yes most people with a million net worth actually have more than half in their house, so technically it is much harder for them to throw cash than somebody with a billion and a much smaller % of their worth in illiquid assets such as property or unlisted companies. I wish I had made this point too.
I could, perhaps, see them wanting to be cautious if you appear to be having an obvious mental health crisis (but even then, as a paramedic I've heard more than one tale of families ruined by the spending of someone who was unmedicated and bipolar).
I could even potentially see there being a law enforcement issue of creating a panic or riot, exaggerated for example: "I'm going to take this money and throw it on the tracks at a train station and people can see how much risk they're willing to take to get it".
But "you have to give us an acceptable reason"? No. I am of comfortable but not exorbitant means (lower six digit salary), and my cash withdrawal limit, by default, is $15K/day. And the one time I asked for that to be raised temporarily, the only questions I got were for an additional piece of identification, and that they were able to call the contact numbers they had for me on my account to verify that it was me who picked up the call. Not "for what purpose, sir?"
[0] https://www.bitsaboutmoney.com/archive/two-americas-one-bank...
Banks try to avoid holding excessive amounts of cash in suburban branches because it makes them attractive armed robbery targets. If you have a need for a large amount of cash, you can let them know (my bank says 24-48 hours in advance), go to multiple branches, or to a large city branch. Inconvenient, perhaps, though temporary. If it's for a business or a recurring need your bank is generally happy to make that part of their regular logistics, "Monday's cash delivery needs X because asimovDev regularly wants $50,000 in cash every Wednesday".
> it has to be approved
I'm not sure what you mean by this, but I don't think it's "approved" in the sense of the bank deciding if you're allowed to do so. But hmm: multiple ID checks, or a specific seniority of bank employee doing the check. Or if you decide you want to take out $250,000 and you have to do it in cash, they might a) want a day or two to physically acquire the cash, and/or b) have additional security due to their insurance policy. They certainly might try to suggest you look at a cashier's check or wire transfer or other instrument to do so. There's going to be a CAR for any transaction involving more than $10,000 in cash.
But I'd challenge the assertion that the bank tells you you're "not allowed" to withdraw "large amounts of cash" from an otherwise unencumbered bank account.
~400–800 million people (top 5–10% of global earners) could easily pay $833/month without major struggle, assuming they earn >$100,000/year.
So 90% people couldn’t even afford to pay a whole month of salary to a median earner without major struggle.
~3.6 billion people (45% of the global population) can likely afford to drop a $0.25 coin in a hat for a street artist without financial struggle. But that might not feel exactly the same as giving a whole month of median salary, let alone 40 years of it.
EDIT2: Actually it’s more interesting. The commenters seem have changed their wording away from what I was criticizing.
Original observation: Try to purge envy from your heart. It’s a poison.
There was originally a lot of dark envy in this thread but interestingly it’s been revised out to be more subtle.
Now you might argue that “vacations” aren’t “life changing”, but I would certainly argue that if you never would have had the experience or seen the place then they absolutely can be. But even if not, I refer you back to the original thesis which is that “life changing” is relative. Because the sums of money we’re talking about would have been “pay my rent for a year”, “buy a reliable (used) car”, “reduce my student loan balance by nearly a third” sort of money. And those I think could all be reasonably said to be life changing sorts of things.
Finally I would suggest that if you are “throwing away” this sort of money on actually changing someone’s life, then you are by definition not “hoarding money” and can hardly be said to be poisoning society with your relative wealth.
I've spent a lot of time in communities trying to grow past 'money' and decided that the usual replacement is allegiance to some other ideology that aligns everyone's incentives to a common cause or cult. I'd rather have diverse incentives with a common language of cash.
If you went to school and believe what you write then you went to terrible schools.
Capitalism has done a lot of good in the world, and it has also done a lot of bad.
The problem isn't that capitalism exists, it is that far too many people treat it as a religion rather than a tool.
I don't think Humans can ever do anything other than capitalism because at the end of the day, a farmer making food and delivering it is just going to STOP working when he finds out a daycare owner has made $15 in 3 years without actually taking care of kids. And everyone just bubble wraps the explanation - and then they disallow anger. The farmer then writes up a proposal for starting a daycare and the food stops flowing. Everyone dies in communism.
Everyone dies in capitalism as well though. Everyone dies generally at some point in life.
Reality is, currently most of us are wage slaves and I'd love to work a little less and still be able to afford life. An alternative to capitalism would be socialism and killing corrupt people off.
There are just purely economic problems caused by wealth inequality too because while money numbers can just keep going up infinitely, there are only so many real assets (and services like education and healthcare) that can be bought with those money numbers, so the higher the wealth of the top relative to everyone else, the easier they price everyone else out of the economy, which we are very much seeing the effects of over the last few years as things get increasingly K-shaped and the middle class vanishes.
All of this said, the last time and place I'm going to be snarky or critical of any one person's wealth is when they are voluntarily redistributing it to improve things for the common good.