Quote:
Originally Posted by Lune
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If Paris Hilton has $100 million being managed by investment bankers, in a few years it will grow to $120 million. In the next few years with a higher principle it will grow even more. Paris Hilton's wealth creation is only dependent on aggregate wealth because the wealth itself is the vehicle for income. As her wealth increases, her capacity to generate even more wealth also increases. There is no natural force in the free market that counteracts the tendency of the Paris Hiltons of the worlds' investment accounts to grow over time at a rate totally unparalleled by those who sell their labor.
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This is where we want the taxes big boys.
On passive income-- first of all (bring it in line with Britain), and then second, capital gains made during stock market speculation.
I would not increase capital gains tax on anything that was considered a legitimate investment attempt, how would I quantify what is a legitimate investment stock and what is a speculative stock, and what implications or damage that kind of regulation and taxation could cause to the marketplace, I have no idea. I just know speculation deserves higher taxes. I WOULD NOT USE TIME AS A QUALIFIER. EX. current capital gains system is based on time elapsed. I would change that to where time elapsed is irrelevant to whether you qualify for capital gains burden.
Lastly, tax penalties for not having large amounts of personal income invested in the market. I.E. the Paris Hilton's sitting on large swathes of capital with no intention to do domestic business, combined with a very high passive income. Tax it hard, same as Britain. Make them flee to a tax haven and have to renounce citizenship, same as Britain. You want your passive income and seek a passive income lifestyle, you can fucking leave and do it elsewhere.
A passive income lifestyle does not benefit the market. Equally a problem are hedge funds, which end up being black holes of capital-- sucking, killing off, and consolidating labor even when they are functioning as intended at their best. At their worst, the capital just simply ceases to exist, it disappears overnight having been eaten up by other speculators.