This was an interesting point I hadn’t thought of before, so I wanted an alternate perspective since a Twitter meme is a little one sided:
Property taxes are ancient — they predate modern stock markets by centuries. Land was the dominant form of wealth, and crucially, you can’t hide a house from the assessor. Real estate is immobile, visible, and tied to a specific jurisdiction. Stocks are the opposite: mobile across borders, easy to hold through trusts or shell entities, and private holdings are genuinely hard to value year-over-year.
The other piece is who’s collecting and why. Property taxes are local — they fund schools, fire, roads, the stuff that directly makes your property more valuable. There’s a clean “benefit” logic: the city paves your street, your house is worth more, you pay for it. A share of Apple isn’t enhanced by Seattle paving anything, so there’s no equivalent local nexus.
Stocks also already get taxed, just at different moments rather than annually: capital gains when you sell, dividends when paid, corporate income tax on the underlying company, estate tax at death. The argument against an annual wealth-style tax is partly that the system already takes its cut, just not on a recurring basis.
A few countries (Norway, Switzerland, Spain) do tax financial wealth annually, but most that tried it abandoned it — capital flight and valuation headaches. In the US there’s also a constitutional wrinkle: the federal government can’t easily levy direct taxes on wealth without apportionment among states, which is why Warren/Sanders-style wealth tax proposals have to be carefully structured to survive a court challenge.
ExtremeDullard@piefed.social 3 weeks ago
They’re right: it is pretty complicated to tax the rich using the current tax code. And there’s a very good reason for that: they made sure it’s as complicated as possible.
krellor@fedia.io 3 weeks ago
I think the idea that taxing the rich is difficult or our tax code is too complicated feeds into the narrative around the problem being too hard to solve. I think the reality is more straightforward:
Bring back the previous top tax bracket of 39% that Republicans did away with. That will bring in a significant revenue.
Raise or add the top brackets on the capital gains taxes.
Add a new top tax bracket of you want to raise more revenue, e.g. 46% above X millions.
When you look at reports by the congressional budget office or independent budget groups, most of the other proposals are noise in the grand scheme of things. Even the buy, borrow, die strategy that gets a lot of airtime (because it rightfully violates most people's sense of fair play) only really accounts for something like 2% of the funds used by the ultra wealthy.
Most of the things like wealth taxes would require more complex legislation and be treated by the courts, certainly going to the supreme court. But the above three bullets would meaningfully raise revenues, are simple in terms of legislation, and have clear statutory authority and case law on their side.
The only thing hard is electing enough people who actually care about the budget and the people.
tburkhol@slrpnk.net 3 weeks ago
Income tax may be a solution to government revenue, but it’s not a solution to inequality.
Capital accumulates exponentially, and if you don’t address that exponential growth, then there will be ludicrously wealthy people, social immobility, and all the problems we have now. Tax wealth.
Of course it will be complicated. Of course there will be court cases. All of that is true of the current system. We can’t get to a working system if we don’t even start. Tax wealth.
MasterBlaster@lemmy.world 3 weeks ago
Forget 39%. We have greater national debt as a percentage of GDP than we did in 1944. We need to reinstitute the tax brackets from then until 1965, which had a top rate of 90%. There are reasons we had a middle class back then, and this is one of them.
Zarxrax@lemmy.world 3 weeks ago
Capital gains should just be taxed as regular income instead of having a special rate.
bufalo1973@piefed.social 3 weeks ago
Proposal:
minimum wage = 0% taxes
N * minimum wage = N% taxes
kevin2107@lemmy.world 2 weeks ago
you literally missed the point on the tax loop literally all billionaires use.
JoeBigelow@lemmy.ca 3 weeks ago
How difficult would it be to enact legislation to prevent using loans against stock/assets and avoiding income/capital gains tax? Something like “if you have things worth money you need to sell them before taking a frivolous loan.”? Idk I just hate that loophole
BlackLaZoR@lemmy.world 3 weeks ago
How about removing property tax for sake of consistency?
MyVeryRealName@lemmy.world 3 weeks ago
How is the government supposed to make money then?