(Replying to PARENT post)
The drawback of taxing wealth is that it distorts markets, it discourages saving.
EDIT: Can't comment ("You're posting too fast, blah blah blah"). Here are some replies to the comments bellow:
> It's encouraging people to make their money be productive instead of stashing it under a mattress.
When you have money in the bank, you're effectively lending most of it to other people. Your money is "productive", which is encouraged by the interest.
> Everything distorts markets. The question is how to distort markets into providing the best outcome.
Neutral tax (https://en.wikipedia.org/wiki/Optimal_tax) doesn't. But of course, market distortion is not the only or primary factor in policy decision-making.
👤RivieraKid🕑8y🔼0🗨️0
(Replying to PARENT post)
We tax real property, which is a form of wealth taxation.
👤khuey🕑8y🔼0🗨️0
(Replying to PARENT post)
Many top corporate executives in Norway & Sweden will evade this by "living" in Switzerland for >183 days a year.
👤nickoakland🕑8y🔼0🗨️0
(Replying to PARENT post)
Inflation is not deductible, so the US (and most other countries) have defacto wealth taxes to the tune of INFLATION RATE * CAPITAL GAINS TAX RATE, or roughly 0.48% annually to high earners in the USA.
👤cjlars🕑8y🔼0🗨️0
(Replying to PARENT post)
Just to clarify, nobody in the US is doing this, but it's not unheard of elsewhere. For example, Norway has a wealth tax of about 0.85% and there are some other examples at https://en.wikipedia.org/wiki/Wealth_tax#Current_examples .