- Sep 30, 2007
- Reaction score
- St. Louis, Missouri, USA
- Political Leaning
- Very Liberal
Typically, debate of US national debt focuses on the proper mix of spending cuts and revenue increases and revenue increases almost always are discussed in terms of income taxes. Here's another perspective on the dichotomy.
Taxing wealth is a great idea. One of the most frequently heard arguments against taxation is the disincentive to production it is said to create. That's the basis of the Laffer Curve. We don't have that problem with wealth taxes. Wealth taxes will be completely independent of work. They will reflect the community's fair share of wealth accumulated by any means whether productive effort or just good fortune. Wealth taxes are an idea whose time has come.IF you’d like to know where American political debates are headed, the data suggest a simple answer. The next major struggle — in economic terms at least — will be over whether taxes on personal wealth should rise — and by how much.
While virtually every government could pay off its debts by taxing wealth, such taxes are often politically unacceptable. In other words, fiscal problems are best regarded as problems of dysfunctional governance.
Higher wealth in a nation means that there is more to take, and growing inequality means there are more problems that its government might seek to remedy. At the same time, however, this new economic configuration will mean greater political influence for the holders of that wealth, and that will make higher wealth taxes harder to achieve.
Wealth Taxes: A Future Battleground