FW: tax on capital

[Harry Veeder <eo200@xxxxxxxxxxxxxxxxxxx>]

Barry Brooks:
    Wealth held for use is not a good thing to tax because it's one thing we
want to encourage.

Income is the indication that wealth is not held for use.  Tax income
instead of wealth.

Harry Veeder:
I tend to agree, but would phrase it differently and say income reflects the
degree to which wealth is being hoarded rather than shared.

Therefore, according to this view, the purpose of taxing income would be to
discourage the hoarding of wealth.

John O'Donnell:
Very analytical, your opinions are obviously much more sensible than logic.

Harry Veeder:
Instead being smarmy, show how such a tax policy could not achieve the goal
of wealth sharing. I don't want to hear how you would tax in order to
stimulate production, because that is a different goal.

John O'Donnell:
Its really not very difficult if you replace your self-righteous opinion
with logical analysis. Start with just what constitutes wealth and income.

Wealth is the accumulation of income over expenditures plus the growth in
value of assets held. Income is current production.

Tax current production and there is less left to add to wealth. Leave wealth
untaxed and the growth of asset value goes on unrestrained. Both effects
contribute to a disproportionate increase in wealth to the wealthy over the
accumulation of wealth by the less wealthy. Not exactly a process of
enhancing "wealth sharing."
--
            -- jbod

        Tax Privilege, Not People
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