Quite a few people are saying that they aren't that enthused about going back to low paid jobs; like they had before the pandemic. Expectations have been ratcheted up another notch by generous corona virus relief packages.
On the other hand, a lot of employers have said that they operate on a thin margin. For instance, supermarkets with discount prices and a thin overhead. Miss matches of the economy.
At the same time, there are huge windfall profits that have been made. Not necessarily at those same supermarkets and businesses that pay the wages, however.
Yesterday, I heard about someone who's house had appreciated 3 fold in value since they bought around a decade ago. They were planning to sell and move to a less expensive area reaping a huge capital gain.
I heard they have family in that less expensive area, so it's not like they are moving to total social isolation though they are moving to Kansas.🤣 After buying a house in Kansas, they will have lots of money leftover.
Washington State's capital gains tax may have missed the mark
Here in Washington State, the legislature has just passed a new capital gains tax, but from what I hear, it exempts homeowners. Maybe it comes from a "stick it to business" mindset taxing capital gains on stock transactions, but exempting windfall profits from homes.
I think we need to include windfall profits from selling homes also.
Somehow, we need to figure out how to better balance the economy for people in lower wage jobs. In a lot of cases, even the businesses these people work in are not raking in huge profits.
The wealthy are not necessarily the owners of those particular businesses.
To some extent, raising wages will raise the price of doing business in so many businesses that are on a thin margin. This means higher prices for consumers.
It's like we keep meeting the enemy and the enemy is ourselves. In so many cases, the consumer market is the ultimate employer.
Upper middle class people, eating in restaurants, will now have to "be the change they want to see in this world" if they want a more fair and equitable world.
As the September 4th end date for some of these generous coronavirus unemployment benefits approaches, there will need to be lots of patience and adjusting as we try and accommodate our ever increasing expectations for fairness and equity in society.
We also need to figure out a better deal for many of the people who rent who have seen their rents skyrocket.
Washington State's new capital gains tax is facing a court challenge so it's days may be numbered. Though I am no expert, from what I understand, the new law is based on people's income. The tax applies only if one's income is above a certain threshold. This means filling out an income tax form to the state and Washington State constitution prohibits an income tax.
Personally, I am in favor of income taxes, but that would take more heavy lifting on the part of the legislature. This capital gains tax may be struck down in its present form.
A friend of mine suggested it should have been more like a sales tax on capital gains transactions, rather than based on a person's income. Easier to do legally. Also should include homes.
Based on transactions, it could still set a threshold of high end transactions so as to exempt lower value transactions. That could fix the current legal challenge.
My friend suggested that we also need to raise property taxes on high end residential properties. There are lots of multi million dollar mansions in this state.
Similar tax ideas could be applied nationally.
I may be a bit over my head in discussing taxes, but these ideas seem to make sense to me.
I've probably lost the audience to slumber already anyway.🤣