I've never been in favor of a wealth tax before, but it's clear that ultra rich people like Bezos, Bloomberg, Gates and others are a blight on society and something needs to be done about it.
I'm not sure what the answer is but the current path is not sustainable.
Let’s say you wanted to tax Bezos at 20% of his wealth. Well, the majority of his wealth is tied up in Amazon. Amazon is worth more now, so the value of his stock went up.
Now, in order to tax that, he’ll have to convert some stock to cash. Selling that much Amazon stock would devastate the share price, lowering its value, and by extension Bezos’ wealth that you just taxed him on.
Time for a wealth tax on everyone worth over $200 Billion.
I've never been in favor of a wealth tax before, but it's clear that ultra rich people like Bezos, Bloomberg, Gates and others are a blight on society and something needs to be done about it.
I'm not sure what the answer is but the current path is not sustainable.
Wealth isn’t always liquid assets.
Let’s say you wanted to tax Bezos at 20% of his wealth. Well, the majority of his wealth is tied up in Amazon. Amazon is worth more now, so the value of his stock went up.
Now, in order to tax that, he’ll have to convert some stock to cash. Selling that much Amazon stock would devastate the share price, lowering its value, and by extension Bezos’ wealth that you just taxed him on.
That’s why wealth taxes don’t work.
If it's a gradual thing done over a period of years it would not devastate the share price.