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0 pointsmarcosdumay1y ago0 comments

If you add financial instruments into the tax (what is a tax on investing, not spending), it will become proportional. What is still not very good.

This blind kind of tax also has horrible impact on the production of goods with high added value.

0 comments

scotty791y ago

> what is a tax on investing, not spending

Money changes hands so it's taxed with a purchase tax as a general rule.

> it will become proportional. What is still not very good.

Progressive tax currently is just a theory. Rich actually pay regressive tax. I'd take proprtional tax over ostensibly progressive tax but in reality regressive tax any day.

marcosdumayOP1y ago

> Money changes hands so it's taxed with a purchase tax as a general rule.

That's called a "transaction tax". It has lots of well known issues that are incredibly hard to remedy.

scotty791y ago

Can you point me to some reading about its drawbacks?

I know it is used widely for larger transactions of private individuals like buying a car or a house albeit with a small rate of about 2%

Since ownership of houses and cars is carefully tracked it's pretty impossible to dodge.

j / k navigate · click thread line to collapse

0 pointsmarcosdumay1y ago0 comments

If you add financial instruments into the tax (what is a tax on investing, not spending), it will become proportional. What is still not very good.

This blind kind of tax also has horrible impact on the production of goods with high added value.

0 comments

scotty791y ago

> what is a tax on investing, not spending

Money changes hands so it's taxed with a purchase tax as a general rule.

> it will become proportional. What is still not very good.

Progressive tax currently is just a theory. Rich actually pay regressive tax. I'd take proprtional tax over ostensibly progressive tax but in reality regressive tax any day.

marcosdumayOP1y ago

> Money changes hands so it's taxed with a purchase tax as a general rule.

That's called a "transaction tax". It has lots of well known issues that are incredibly hard to remedy.

scotty791y ago

Can you point me to some reading about its drawbacks?

I know it is used widely for larger transactions of private individuals like buying a car or a house albeit with a small rate of about 2%

Since ownership of houses and cars is carefully tracked it's pretty impossible to dodge.

j / k navigate · click thread line to collapse