The reason why the most difficult capitalists have to base themselves on economic taxes

You are a successful capitalist and you are proud to be rich by investing more than you do. You are also better known for your political views, not for your own benefit. So you agree that something needs to be changed in order for the economy to work for everyone, or for it to be kept in check.

What changes could you make regarding your answer above? Surprisingly, you may want to accept income tax.

It seems true that the tax rate for shareholders is increasing. Be sure to use more government and financial services it is very strong for many years. In the same way, the value of an asset grows faster than the value of money (wealth to the extent of household goods has doubled since the 1980’s), donations that can be used to the public fund should also follow.

This political change is a trend that capitalists may reject in vain. Instead, they should work hard to earn a living for themselves and for capitalism. Moving forward wealth tax and the annual tax on the taxpayers’ wages – all of their assets to deduct their debts – is paid at a higher rate.

Only a handful of countries have it, but it also includes other more developed countries such as Switzerland and Norway. In the US, economic tax has been paid by Elizabeth Warren and Bernie Sanders, who was left out of the final presidential election. In the meantime Biden management’s reluctance to raise taxes it does not show interest in paying such a tax. Successful investors should expect this to change.

All countries already have tax revenue. They do not always pay their taxes. Instead, they levy taxes on property exchange rates, such as taxes levied on performance by stamps, or on transfers from one person to another, such as property taxes and gifts. In addition, all countries pay multiple taxes on the economy as real estate.

All of this makes capitalism less effective. Paying taxes only on sales gives rewards to investors rather than just soliciting or exchanging money for any capitalists they think is most useful. It is also frustrating to give wealth to younger generations at a time when they can make the best use of it.

The impetus for existing financial taxes is not just idleness. Some of them are confusing. Inheritance taxes and gifts put more strain on the property of those who live longer or save their property than those who die prematurely or give away promptly. Property taxes are controlled by the value of the property, so a person with a 90% mortgage pays the same as a person who owns the same property and is richer than ever.

Income taxes it punishes those who make the right choice by taxing only the economy and reducing costs. It also ignores the fact that the ability to pay taxes depends on what a person has done instead of depending on how much they are getting. In short, such a government also divides from the millions who sell well to the billions who misappropriate money. Total income taxes do the opposite.

Heavy economic taxes are also well compared to the taxes they earn from big business – profits, dividends and interest rates. It is similar when your income increases and the more you spend, the more you pay taxes. Again, if you put a billion in the wrong, you could be taxed a little bit if you put a million dollars in it.

With net economic tax, property tax depends on its return. It follows that the most successful investors return their savings and see their income increase. It is a type of New Testament tax the parable of the talents.

Over time, this can put a lot of money into the hands of those who distribute it effectively. The model benefits the success and promotes the potential for capitalism in the destruction of the environment. Sustainable economic taxes, over time, will contribute to the growth of a small economy – a very small but very stable economy.

What is clear is that, by all means of taxation, progressive economic taxes are a government that is passionate about capitalism and favors a wealthy democracy. And, it is the social culture that is associated with capitalists over time – even those who are the richest but the worst of whom the economic tax will suffer the most.

martin.sandbu@ft.com