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Old 09-02-2019, 04:51 PM
Wrenching Spanners is offline
Join Date: Jun 2011
Location: London
Posts: 538
Originally Posted by Ludovic View Post
I calculated that we could get a similar amount just from the multibillionaires that are a small fraction of the 1%. The list of American billionaires is almost 1000 long so it wouldn't surprise me if they had $2 trillion total net worth, and by assuming they earn around 5% on that money (probably more for stocks, less for other categories) they have an income of $100 billion which would yield taxes of $10 billion, since right now they're paying less on this money than everyone else, so we could easily alter it so they are paying only slightly more.
How is that 5% being determined? Dividends? Definitely that income should be taxed. I'm pretty sure it currently is, at least for direct payments to the investor. Wealth from stock price increases? You're going to force people to realise they're investments - sell their shares before they're wanting to - in order to pay for the stock going up. Probably that would lead to some sort of rebalanced equilibrium between share increases and dividends, but if there's any volatility in the stock market, which there will be, finding that equilibrium on tax day is going to be impossible.