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Global wealth inequality- 62 people are now as wealthy as world's 3,6 billion poorest
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Brodiaga Offline
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RE: Global wealth inequality- 62 people are now as wealthy as world's 3,6 billion poorest
(01-21-2016 08:02 PM)zero1 Wrote:  The thing is though,if you could return 5% interest, risk-free, on a billion dollars, you'd be very well sought-after. This is actually very difficult to do and would make holding on to the money very difficult. Not to mention most business ventures fail anyway. Just look at the inheritance of heirs and how quickly they often squander their wealth since they lack the wisdom that accumulated that wealth to begin with. I'm all for taxing the oblivion out of inheritance though, since that truly was free money which didn't provide a service to anyone.

I'm not talking risk free. Investments are never risk free.

The idea behind setting the floor at, for example, 10 million, is that even if a person chooses to not invest his excessive wealth but keep it in a checking account, anything less than 10 million will not be subject to wealth tax. So, even if the tax will result in depleting the part of his savings above the 10 mil cut-off over time, the person who is subject to tax will still keep the 10 mil and have enough to be comfortably off for the rest of his life (400K/year using the generally accepted 4% draw rule).

Again, the specific cut-off is debatable, so is the 4% draw down rule I'm using, which some people argue should be 2% or even less in the current environment, but I'm talking about the general idea which is to tax excessive wealth and avoid excessive concentration of wealth in the hands of the elite.
(This post was last modified: 01-21-2016 08:23 PM by Brodiaga.)
01-21-2016 08:19 PM
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RE: - zero1 - 01-21-2016, 07:33 PM
! - DjembaDjemba - 01-21-2016, 12:11 PM
RE: Global wealth inequality - poutsara - 01-21-2016, 11:24 PM
RE: Global wealth inequality- 62 people are now as wealthy as world's 3,6 billion poorest - Brodiaga - 01-21-2016 08:19 PM

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