4/17/2005

4-17-05 - 8

4-17-05

A very fair tax that we will likely never see would be a tax on assets, not income. Completely eliminate all income & sales & other taxes. Simply look at the total value of each person's assets, counting cash, property, etc. and take 1% each year. This would be a far more progressive tax - the super rich would pay the vast majority of taxes. The very poor would pay almost nothing because their assets are close to zero. The political problem with this tax would be that it creates very bad-for-television moments, like taking away old peoples' homes because their only asset is their very valuable home. The great thing about this tax is that 1) you can't hide assets anywhere 2) it doesn't stop taxing the super rich just because they stop making profit, 3) it really is proportional to the ability to pay, 4) it's a simple flat percent, 5) it encourages spending, so it stimulates the economy, there is absolutely no government fee on transactions (income, sales, etc.) so it encourage the economy to be far more fluid.

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