Thread by @Noahpinion

OK, so, today's @bopinion post is about wealth taxes.

Wealth taxes are a good idea, and they have some advantages you might not have realized!

bloomberg.com/opinion/articl…

Wealth taxes raise a lot of money!

Elizabeth Warren's proposed 2% wealth tax (3% on wealth above a billion) is expected to raise as much as $275 billion a year.

That's almost FOUR TIMES as much AOC's proposed 70% tax on top incomes!

warren.senate.gov/imo/media/doc/…

Here's an example of some of the stuff you could pay for with $275 billion a year:

Also, wealth taxes seem like a pretty fair tax.

Most Americans already pay wealth taxes, in fact. Property taxes! That's a wealth tax!

Except rich people hold most of their wealth in stocks instead of houses. Why should middle-class people's wealth be taxed more than rich people's wealth?

And would they hurt the economy by discouraging entrepreneurship and innovation?

Seems pretty unlikely, given the evidence on income taxes, plus common sense!

In fact, some economists like @fatihguvenen suggest that wealth taxes could make the nation more productive, by taking money out of the hands of rich people who don't invest it wisely!

stlouisfed.org/connecting-pol…

Adding another layer to the tax system would also probably cut down on avoidance. And since only a few people would be paying Warren's wealth tax, it wouldn't add cumbersome tax preparation requirements for normal folks.

So wealth taxes have TONS of advantages.

But in fairness, I should mention that they also have a couple of disadvantages:
1. Writing down asset values to reduce tax
2. Moving money out of the country

But the biggest obstacle to wealth taxes might be the legal one. Experts disagree on whether the Constitution allows it.

If we do pass a wealth tax, it's going to be a hell of a legal battle.

motherjones.com/kevin-drum/201…

What happens if we lose that legal battle?

Well, fortunately, we have a really good backup plan ready to go: INHERITANCE TAXES.

bloomberg.com/opinion/articl…

Note that inheritance taxes are much more than just estate taxes! An inheritance tax taxes ALL sorts of family transfer income, including gifts, trusts, etc.!

Here's an explainer of how it works:

equitablegrowth.org/silver-spoon-t…

So one way or another, we CAN tax great fortunes.

And we should!

And given the way public sentiment is moving, it seems clear that we will.

bloomberg.com/opinion/articl…

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