• 2 Posts
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Joined 1 year ago
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Cake day: August 5th, 2023

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  • It’s the same as in every business: those making decisions think that the decision making is the hardest and most important part of the equation. Not only that, they believe that it is their right and that they worked very hard to get where they are.

    There are two reasons they have to believe that:

    1. if they didn’t, they’d feel that they didn’t deserve it
    2. it also explains (to them at least) why there is inequality

    The common argument that is brought up against change now is capital flight: “if businesses and rich people were taxed too much, they’d leave the country”. There is a great fear that they will leave and take all the good jobs with them. The counter argument to that is: they aren’t the only ones with brains to get a business going. Rich people aren’t smarter than non-rich people, businesses that leave did employ people from whence they left and they also probably sold to the people in that area or country.

    Now, of course the speed of departure, the political reaction, and the location are important.

    Speed: instant departure can have a serious impact as the jobless might not be able to find other employment quickly. A graduated departure allows that however and also makes it possible for people to focus on other jobs/specialisations in the first place.

    Political reaction: depending on where you are, providing recertification and training courses, having good welfare programs, and most importantly having an exit tax can help soften the blow of departure

    Location: A big employer leaving a small town can be devastating. A small employer leaving a city, less so. A big employer leaving a city can burden the city, but the other factors are important.





  • Every year paying 2% on the wealth above the threshold means you have to make at least 2% ROI on these assets to stay neutral with the money

    2% is nothing mate. Nothing. The wealth of the rich grew by 30% during COVID IIRC. Housing prices dropped in some places but only marginally and went right back up. It wouldn’t surprise me if financial assets / instruments were not included in this bill either. The rich have been getting richer at rates way past inflation and I think by now it’s common knowledge that it doesn’t happen with income and nearly everything but.

    Again, 2% is a starter, but still a joke. Most of their assets can still sit there and accumulate value at rates that easily surpass inflation.