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The rich convinced us that taxing them is too complicated but everyday people can be taxed pretty easily (discuss.online)
submitted 2 months ago by to c/workreform@lemmy.world
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[–] 15 points 2 months ago (2 children)

I am a dumb average guy who is not an economist. Could you please explain the differences?

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  • [–] 1 point 1 month ago

    Sure - no condescension. Imagine you have $100,000 in your emergency savings fund.

    Now imagine there's a 20% wealth tax on that. You also already paid income tax on the money that you put into that savings account.

    So, after one year in the savings account you now have $80,000. 2 years, you now have 62,000. Year 3 it's around 48,000.

    That doesn't include the effects of inflation, which does the same thing as that tax would do but usually at 2% per year (currently at 4% per year) and it's less visible because it's reducing the value of those dollars rather than taking them away.

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