Comment on Wealth inequality seems like the only outcome in a system where capital gains are taxed less than labor

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DrFistington@lemmy.world ⁨14⁩ ⁨hours⁩ ago

Yeah, so you completely missed the point. A sales tax is based on consumption rates. People with more money will consume more and pay a higher tax which is appropriate because it’s proportional to not only their income but also they’re spending power. This brings us to our next point a person spending power doesn’t have anything to do with their earned income at least in the United States. If you were born rich and you never worked a day in your life you would never pay an income tax you would pay a nominal 15% capital gains tax on the trust fund that your parents set up for you and then keeping sales taxes low and property taxes low basically just subsidizes you.

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