Quote (RedFromWinter @ 28 Mar 2021 15:52)
The wealth gaps are growing faster than people can move ahead or up the socioeconomic ladder. It's annoying because those with enough wealth can just sit on the top of the figurative ladder as more rings get inserted for those climbing. Mainly, being able to earn more than household income from a wealth stash devalues our society. I commend those who can work and then do well on their investments. Those who just milk investments for 'work' have a harmful parasitic effect on our economy. Those people need to get knocked down the ladder, or get taxed so they move down over time unless offering real value through real work.
Yep, there's even a term for these harmful tendencies: neofeudalism.
The trick is to have the effective tax rates on capital gains be higher than that on income. The problem is that the effective tax burden on ordinary folks who are earning their living via working is so astronomically high once you add up all the various taxes and dues that it is politically completely unfeasible to raise capital taxes up to a similar level. Essentially, what Western societies would need are tax cuts for the lower 85% and tax hikes for the top 5-10%, particularly for the top 0.1%.
Good luck coming up with policy which achieves that and can win enough political support to get passed into law.
This post was edited by Black XistenZ on Mar 28 2021 05:49pm