Comment by hello_moto
7 days ago
what you're saying in short is that the US economy has changed from Manufacture-based to Service-based, just like China.
People don't realize this but China is moving toward Service-based, naturally, as they raised their standard of living, thus education.
What's missing is not raising tax on Income but taxing Wealth: the super rich has their wealth sitting and growing unproductively (house appreciating is not productive, buying farm lands and rent it to other farmer isn't productive). Holding Limited version of a Ferrari isn't productive. Feel free to find other Assets.
Once the super rich completed their journey in this world, they will inherit billions to their kids, whose productivity output does not match the wealth they inherited, again, not productive.
Tax their Wealth.
Even if this were implemented, any country taxing wealth would see a flight of capital to other countries not taxing it.
Good, I'll help you pack your factory into your suitcase.
The US wouldn't as it taxes global income.
More generally, you'd probably get the OECD together and make a deal if you wanted to do this.
Not many billionaires will move to the Congo, regardless of how much they are taxed.
So? Less capital chasing after housing means housing prices fall. If the capital was not destined to be used in the first place, then it only serves to inflate the economy
The other countries will bear inequality and servitude.
Let them swallow that pill.
The rich can’t bring their assets without divesting and get taxed first.
Can you imagine if someone like Elon Musk got wealth taxed at 75% of his $400Bn?
He’s still a billionaires and USA coffers will increase by $300Bn.
He can’t replicate his success outside USA because USA has the market and the appetite to spend.
You wanna cut income tax? Get Wealth Tax in place. Not Tariffs and cutting Govt. That’s billionaires playbook.