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what's your favorite tax rule
(lemmy.world)
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this post was submitted on 03 Aug 2023
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A capital gains tax works well for the rich that have the majority of their wealth tied up in stocks.
Except billionaires take advantage of a loophole whereby they can take out loans using stock as collateral, instead of selling the stock, meaning they pay no capital gains.
https://www.propublica.org/article/the-secret-irs-files-trove-of-never-before-seen-records-reveal-how-the-wealthiest-avoid-income-tax
If we taxed land, it would be essentially impossible to evade, even with fancy accounting and shell companies and all that stuff the rich love to employ. All this is exactly why the how of taxing the rich is so important.
Yeah land value taxes are cool, but ultimately taxes are just a bandaid solution to rampant inequality. As long as billionaires keep their vast economic (and therefore political) power through control of the means of production, they have the power to undermine any attempt to tax their wealth away. Which is why we need a fundamental reorganization of the economy that places the power in the hands of the people. Otherwise known as socialism :)