This thread is to discuss this policy proposal (which was submitted on 30/9/2018):
In a globalized economy, taxing income flows leads to the known problems of tax evasion and competition between states.
On the other hand, we can addopt the radical idea to change the tax base for natural persons and tax mainly the property (“net worth”) instead of income. Of course, this tax must be highly progressive and must have a starting threshold (around 0.5 million EUR) and much lower rates than income tax (e.g. between 0.1 and 2%). Thomas Pickety has proposed this type tax after extensive research on the subject of inequality.
I cite below some advantages of this tax:
It is much easier to enforce as property is much harder to hide than income. For instance a state require the tax subjects to declare all ofshore property with the penalty of confiscation of any undeclared property.
It enhances economic dynamism as people are always encouraged to produce.
It is a motive for investment as it has the same goal of negative interest rates.
It is a much fairer tax as it takes into account the yearly imbalances in income (a progressive income tax will tax more heavily someone with .
It attacks more the parasitic rentiers than dynamic enterpreneurs.
It encourages young people and new businesses to emerge and grow
Note:In this text, the words “property” or “wealth” have the meaning of the net value of all assets in the property of a person (of any type: real estate, money, securities etc.) minus that person’s debts.
Any comment, critique or polemic welcome