Seems obvious the parent comment was making a point about how much money it is and not just whether it feels nice to donate money. 400k can go a long way
If you assume Hashimotos net worth is one billion dollars, a $400k donation is equivalent to a $400 donation if your net worth is one million dollars.
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.
> If you assume Hashimotos net worth is one billion dollars, a $400k donation is equivalent to a $400 donation if your net worth is one million dollars.
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.
While we have you here, I would like to say thanks, I disagree with you on a bunch of stuff in terms of opinions, perhaps less than I would expect, but I appreciate people who can and do put effort in supporting things they care about. And building things one can just feel good about, rather than always chasing a financial end game.
I am personally just tired of it, and it's brilliant to see someone thriving outside of the zone to working for work's sake. Even if the realities are different.
Hope we had more people like you whom we all could disagree with but mutually respect.
Cheers to a better future. (hope it wasn't too much waxing poetic but I feel like we are just too damn trapped in this tech bubble to value good moments these days)
> wasn't the accrued billion dollars the remainder after being taxed at a much higher rate (around 50% federal and state, if California) as it was being accrued?
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.
50%? No, that’s for high wages. And previous taxation is irrelevant: we as a society get to choose what is taxed, and there’s no inherent reason why only a single tax should apply to someone. Sales taxes, for example (which disproportionately burden those with less wealth) are paid out of one’s already-taxed income.
> How would the "very small wealth tax" be calculated, that you propose?
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.
People with that much wealth should keep their money and use it where they see fit. A "wealth tax" forces some people to sell stock since not everyone has liquid assets. The CA "wealth" tax was written in a way that they could instantly turn $1B -> $1M or $100K overnight without a vote.
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.
While I agree that tax money gets wasted by the government, I must note that there exist other countries, explicitly not free market capitalist, where getting ultra reach is not the aim (crazy, eh?) and in the last 40 years they have come a long way in creating prosperity for everyone.
>>If you assume Hashimotos net worth is one billion dollars, a $400k donation is equivalent to a $400 donation if your net worth is one million dollars.
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.
How is it out of touch? I donated much more than Hashimoto did relative to our net worths, but I cannot deny that I would have felt much more satisfied making a 1000x impact if I was a billionaire.
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.
A few things to note. 1 billion isn't a thousand times a million. If you make a conservative 5% let's say out of your net worth, you still need to work with a million, whereas you don't with a billion. So, technically, $400 with a million is some amount of work hours, whereas $400k with a billion is just pocket change taken out of more than most people lifetime's of earnings that is just 1 year of your interest.
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.
Pledge what you can. If everyone does this, it adds up. I have a $100/month slush fund I have set aside for Patreon/OS projects I like and use. It's a drop in the bucket, but something. Even $5/month can go to VPS hosting or something.
Your bank might ask you why you want 400K in cash versus a wire transfer or some other mechanism, but it's not "to approve of your reasoning". They might require some time to physically bring $400,000 in cash to the branch you're at.
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?"
i guarantee you it was a stock transfer, that's where the real tax write-offs come in.
you give a $200k donation, get a $200k writeoff, saves you about 50% (100K) in taxes you owe, so it's like the government is kicking in $100k and you are kicking in $100k and whatever the govt would otherwise spend the $100K on goes unfunded.
It's the norm in the US (and pretty much everywhere else with well-implemented developed financial infrastructure) for banks to apply extra scrutiny and roadblocks to large withdrawals. There's a patio11 article going over some of the reasons [0], but it notably generates paperwork for the bank reporting the withdrawal to the government and enables a lot of fraud to allow immediate access.
Somehow I feel it’s probably less satisfying if your contribution pays for a couple hours of developer time compared with the annual salary for an entire team. It’s probably more satisfying to be able to move the needle than not.
A salary of $400,000 is approximately 40 times the world median salary, which is estimated to be around $10,000 per year.
~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.
I don't feel the parent post is about bad envy. There is also good envy, when you feel happy for someone's blessings. But you also would like to have it for yourself.
In a working society, nobody should be able to throw away life changing money. Being rich is poisonous to society. Most of us suffer due to people hoarding money and humanity needs to overcome the concept of money generally.
“Life changing” money is relative. We take some family friends and their kids on a vacation every two years. Sometimes the bill is split, sometimes we cover most or all of the cost. We’re not rich, we just have extra money they don’t because of different life circumstances. But as a result we can help give them and their kids experiences they never would have had. Likewise some friends who are better off than we are were able to take us on a trip we could not have afforded on our own. Again they’re not rich, just a different set of life circumstances.
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.
Hoarding money is not economically prudent in a system designed with mild inflation. Money loses value sitting still, to grow wealth there has to be some action with a positive return. The trouble will billionaires is the oligopolizing of power and influence, not that they're sitting on gold that could otherwise be yours...
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.
Seems obvious the parent comment was making a point about how much money it is and not just whether it feels nice to donate money. 400k can go a long way
If you assume Hashimotos net worth is one billion dollars, a $400k donation is equivalent to a $400 donation if your net worth is one million dollars.
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.
> If you assume Hashimotos net worth is one billion dollars, a $400k donation is equivalent to a $400 donation if your net worth is one million dollars.
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.
While we have you here, I would like to say thanks, I disagree with you on a bunch of stuff in terms of opinions, perhaps less than I would expect, but I appreciate people who can and do put effort in supporting things they care about. And building things one can just feel good about, rather than always chasing a financial end game.
I am personally just tired of it, and it's brilliant to see someone thriving outside of the zone to working for work's sake. Even if the realities are different.
Hope we had more people like you whom we all could disagree with but mutually respect.
Cheers to a better future. (hope it wasn't too much waxing poetic but I feel like we are just too damn trapped in this tech bubble to value good moments these days)
> I think this illustrates ... why a very small wealth tax can be used for a lot of good in society.
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?
> wasn't the accrued billion dollars the remainder after being taxed at a much higher rate (around 50% federal and state, if California) as it was being accrued?
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.
1 reply →
50%? No, that’s for high wages. And previous taxation is irrelevant: we as a society get to choose what is taxed, and there’s no inherent reason why only a single tax should apply to someone. Sales taxes, for example (which disproportionately burden those with less wealth) are paid out of one’s already-taxed income.
> How would the "very small wealth tax" be calculated, that you propose?
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.
> why a very small wealth tax can be used for a lot of good in society
How? It'll just go to the gov. budget which will be mostly used to pay for bloated healthcare, military and interest.
People with that much wealth should keep their money and use it where they see fit. A "wealth tax" forces some people to sell stock since not everyone has liquid assets. The CA "wealth" tax was written in a way that they could instantly turn $1B -> $1M or $100K overnight without a vote.
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.
While I agree that tax money gets wasted by the government, I must note that there exist other countries, explicitly not free market capitalist, where getting ultra reach is not the aim (crazy, eh?) and in the last 40 years they have come a long way in creating prosperity for everyone.
>>If you assume Hashimotos net worth is one billion dollars, a $400k donation is equivalent to a $400 donation if your net worth is one million dollars.
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.
That is a very privileged out of touch comment to make, no offense.
In many(most?) parts of the world, $400 is the equivalent of months of good salary.
How is it out of touch? I donated much more than Hashimoto did relative to our net worths, but I cannot deny that I would have felt much more satisfied making a 1000x impact if I was a billionaire.
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.
8 replies →
A few things to note. 1 billion isn't a thousand times a million. If you make a conservative 5% let's say out of your net worth, you still need to work with a million, whereas you don't with a billion. So, technically, $400 with a million is some amount of work hours, whereas $400k with a billion is just pocket change taken out of more than most people lifetime's of earnings that is just 1 year of your interest.
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.
> 1 billion isn't a thousand times a million.
What?
6 replies →
The type of money I can throw at stuff wouldn't pay a salary of a full-time dev for 2.5 years (if not more).
Pledge what you can. If everyone does this, it adds up. I have a $100/month slush fund I have set aside for Patreon/OS projects I like and use. It's a drop in the bucket, but something. Even $5/month can go to VPS hosting or something.
i don't think my bank will let me withdraw 400k in cash with the reasoning of "I want to throw it"
Just call your dedicated wealth manager.
Your bank might ask you why you want 400K in cash versus a wire transfer or some other mechanism, but it's not "to approve of your reasoning". They might require some time to physically bring $400,000 in cash to the branch you're at.
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?"
Maybe it was a bank transfer.
i guarantee you it was a stock transfer, that's where the real tax write-offs come in.
you give a $200k donation, get a $200k writeoff, saves you about 50% (100K) in taxes you owe, so it's like the government is kicking in $100k and you are kicking in $100k and whatever the govt would otherwise spend the $100K on goes unfunded.
Those are limited to $25k/day for my current bank. Are those not limited elsewhere?
3 replies →
your bank owns your money?
It's the norm in the US (and pretty much everywhere else with well-implemented developed financial infrastructure) for banks to apply extra scrutiny and roadblocks to large withdrawals. There's a patio11 article going over some of the reasons [0], but it notably generates paperwork for the bank reporting the withdrawal to the government and enables a lot of fraud to allow immediate access.
[0] https://www.bitsaboutmoney.com/archive/two-americas-one-bank...
Think of it less as "the bank owns your money" and more "the government likes to watch large cash flows moving around".
yes, I have to apply in advance if I want to withdraw large amounts of cash and it has to be approved.
2 replies →
Somehow I feel it’s probably less satisfying if your contribution pays for a couple hours of developer time compared with the annual salary for an entire team. It’s probably more satisfying to be able to move the needle than not.
there are many non profits that rely on volunteer labor, but they still need funds to operate, amounts of $10k can move the needle quite effectively
A salary of $400,000 is approximately 40 times the world median salary, which is estimated to be around $10,000 per year.
~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.
EDIT: comment was under incorrect parent. my error. moved it to correct location.
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.
I don't feel the parent post is about bad envy. There is also good envy, when you feel happy for someone's blessings. But you also would like to have it for yourself.
Nah this is definitely bad type of envy you can look at the full discussion and additional comments from the user.
In a working society, nobody should be able to throw away life changing money. Being rich is poisonous to society. Most of us suffer due to people hoarding money and humanity needs to overcome the concept of money generally.
“Life changing” money is relative. We take some family friends and their kids on a vacation every two years. Sometimes the bill is split, sometimes we cover most or all of the cost. We’re not rich, we just have extra money they don’t because of different life circumstances. But as a result we can help give them and their kids experiences they never would have had. Likewise some friends who are better off than we are were able to take us on a trip we could not have afforded on our own. Again they’re not rich, just a different set of life circumstances.
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.
Hoarding money is not economically prudent in a system designed with mild inflation. Money loses value sitting still, to grow wealth there has to be some action with a positive return. The trouble will billionaires is the oligopolizing of power and influence, not that they're sitting on gold that could otherwise be yours...
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.
8 replies →
Wicked people will be wicked with or without money.
1 reply →