tag:blogger.com,1999:blog-3580247703206240142.post3459132411025663377..comments2023-05-16T02:08:42.858-07:00Comments on Degringolade: Churn (Partie Deux)Degringoladehttp://www.blogger.com/profile/11893964959960977677noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3580247703206240142.post-74091243788852382292012-08-28T16:07:53.378-07:002012-08-28T16:07:53.378-07:00"You see, taxing income is just a way of sayi..."You see, taxing income is just a way of saying that we are going to stick it to the little folks."<br /><br />True, but only part of the story. Payroll taxes are the other part. In spite of being highly regressive, the very wealthy still collect on their "fair share" of the proceeds upon retirement.<br /><br />Russell's contention is also only half of the story. Only people who aren't uber-wealthy enough to put their assets in family trusts, or into shell corporations (which are then held offshore) are taxed on their wealth. The exception, in some cases, is the property taxes on land.<br /><br />Granted, the wealthy get away with tax murder and they shouldn't. But the only reason we all let them get away with it is because most of us are still convinced we'll eventually be let into that exclusive club too. NoHypehttps://www.blogger.com/profile/00878723265198868160noreply@blogger.comtag:blogger.com,1999:blog-3580247703206240142.post-20626503929703278602012-08-28T09:20:09.251-07:002012-08-28T09:20:09.251-07:00You don't really win by taxing wealth either. ...You don't really win by taxing wealth either. We already have a hard time saving money as it is, wealth taxes tend to be taxes on savers.<br /><br />Part of the reason for the churn is because only a very small amount of our current resources are needed to keep up the basic necessities. Obviously if input prices change (oil and fuel mostly) that would also change.<br /><br />Taxing the churn, may slow up the churn some, but taxing the wealth has to be done very carefully. Since assets usually only have value through the rents they can collect, it tends to promote even more rent seeking behaviour. At some point, you have to find an income stream to match the tax, or the wealth will disappear.russell1200https://www.blogger.com/profile/16258915475311426433noreply@blogger.com