Monday, March 20, 2023

Figuring out how to tax wealthy individuals without smothering business

People often talk about taxing the rich, business and corporations all in the same breath. Then Republicans, who are usually anti tax, say that taxing business will hurt the economy; thus hurting consumers and workers.

I think the discussion needs to look more carefully on what the wealth is being used for. In some cases, it's the buildings and things that a business needs to provide it's goods and services to the public. Taxing that away will effect the flow of goods and services to the public.

In other cases, it's just wealthy people spending money on their own luxuries, such as homes, yachts and so forth. I think that wealth should be more taxed. In some cases, it's money that corporations and individuals spend on corrupting politics as in campaigns and lobbying. That wealth should be taxed more as well.

The tax codes do try and differentiate between legitimate capital expenses, to run and expand a business, versus just individuals getting rich.

Public discussion needs to take into account this difference as well.

With income and wealth inequality getting worse, we need to figure out ways to tax the excesses of the wealthy without crippling the functioning of the businesses that consumers, workers and communities depend on.

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