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Originally Posted by GGG
How do you prevent the eventual concentration of all capital in the hands of very few people if you are unwilling to tax Capital after it’s been acquired?
I agree with you at the 99% population level that there isn’t a need to tax estates or Capital after it’s been acquired but there needs to be a redistribution method for the outliers.
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I'm always curious - genuinely - how Conservatives would address wealth inequality. By every measure it has increased massively in the past forty years, and continues to get worse. Historically, this inequality has unerringly led to instability and worse.
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The reason the gap grows is compound interest on investments - and taxing more doesn't solve the problem - The gap just grows slower - But with compound interest it still ends up at the same spot and same 'problem.'
Maybe businesses over a certain size should be required to put a % (larger % - I will admit I am not sure how deductions work) in the CPP or a similar program - Where employers are then forced to pay for employees savings. (Leaving aside the CPP and the way it is run and distributed by the government....)
It is easy to accumulate wealth slowly if you have even a small amount of disposable income - $250 a month for 45 years (20-65 years old) means you end with a million $$ (inflation ignored)
As long as anyone is able to earn investment interest/income at a higher rate then inflation they will see the gap grow over those who cant. And it grows exponentially because of compound interest. The wealth gap can not be controlled with taxing, just slowed.
And its really all irrelevant with the amount of $$ banks/countries are printing. While 10 million sounds big, the reality is the tax the rich vs the budget makes zero difference. The government just prints more money that the 'rich' are already funding in the future with their taxes as they pay the majority of taxes which pay for the interest on the debt!
The rich/asset owners are secretly praying for universal income. The money all ends up back with them through buying of good/services/assets and its the non asset owning middle class who again would suffer.
The problem is math and compounding numbers. You mathematically can not close the wealth gap - you can just slow the rate it grows