The book's central thesis is that when the rate of return on capital (r) is greater than the rate of economic growth (g) over the long term, the result is concentration of wealth, and this unequal distribution of wealth causes social and economic instability. Piketty proposes a global system of progressive wealth taxes to help reduce inequality and avoid the vast majority of wealth coming under the control of a tiny minority.
PGs attack on the wealth tax is how much a zero effort investor could lose in 60 years. 45% in one case. 40hr per week income tax rates are very often higher than that. PGs paen to the idle rich is absolutely ridiculous. Some one who works hard like Musk will be barely affected by such a tax. It only mildly hurts the idle rich.
> 40hr per week income tax rates are very often higher than that.
You do realize that the wealth tax is on top of the income tax, right?
> It only mildly hurts the idle rich.
And therefore there's no issue! Lol. I shared elsewhere that France tried the wealth tax and then killed it after 42k French millionaires left the country. Why would it work in the US when it didn't work in France and 8 other European countries?
You do realize that a wealth tax of 1% on 5% gain is basically a 20% tax on idle asset appreciation. American middle class pays 1% property tax on their primary asset without flinching.
It is not applying taxes on income. There is a separate tax for it - it is called income tax. A tax cut friendly premier repealing tax laws means nothing. France did not implode in the decades it had a wealth tax. Its not like the USA with a rapidly declining middle class is a fine counter example.
And why are you so hurt at the thought of a 20% tax on asset appreciation on the idle rich? No one really gives a shit.
I come here to learn and hopefully also share some insights with others. I thought you were genuinely trying to teach me something, which is why I engaged with you. But justifying sloppy arguments with "no one really gives a shit" doesn't really do it for me.
3. Pretending to be the only person who understands algebra
If so, I thought you must be made of thicker skin; able to take what you dish out. My adoption of your style might not do it for you, but no one really gives a shit.
PGs attack on the wealth tax is how much a zero effort investor could lose in 60 years. 45% in one case. 40hr per week income tax rates are very often higher than that. PGs paen to the idle rich is absolutely ridiculous. Some one who works hard like Musk will be barely affected by such a tax. It only mildly hurts the idle rich.