Quote:
Originally Posted by Red Slinger
The most common reaction to this is more aggressive progressive taxation. But that aggressive taxation only addresses the uber-wealthy and misses (or treats as an afterthought) how that capital gets to the masses of under and unemployed (in this scenario).
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The other issue is that if you're uber wealthy, you may not be earning a whole lot of regular income (it's not like you're getting a paycheck), and to the extent you are, you're funneling it through tax havens. So the traditional income tax model isn't a great way to deal with the 21st century drivers of income inequality.
Wealth taxes and capital taxes were one attempted solution, but they simply don't work in practice, which is why they've been repealed in most places they've been tried.