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@TheUnderdog
which would cause the stock market to lose almost all its rate of growth
Dude the stock market isn't going to "lose almost all its rate of growth" over a chunk of Amazon and Tesla being sold.
My main concern with a wealth tax
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@TheUnderdog
The net effect of any and ALL government spending is lowered production and lowered standards of living through broken window fallacies which affects all people.
That's the actual cost and the actual tax that pays for government spending because the government can never produce anything. They can only reduce production.
Some might say subsidies are the method by which government "produces" products, but nowhere is the broken window most evident than in the case of subsidies. The government seizes wealth from the production of successful companies and transfers it over to incompetent industries that produce a substandard level of production. That is the essence of the broken window fallacy. The actual cost is the loss of products society would have enjoyed from competent producers. The loss of this opportunity that is not immediately apparent. It's the opportunity costs associated with all broken window government spending.
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@triangle.128k
Annually, the stock market rises about 10% annually. An 8% wealth tax causes the stock market to only rise by 2% a year. This would cause many people to sell their stocks in search of investments with better returns. This causes the stock price to fall even more. If the annual return falls below 0%, everyone sells all of their stock, which causes a depression that the rich probably will use to buy stock cheaply. Congratulations, since the government stuck its long nose into the economy, you have caused the typical stock owner to be deprived of their stock.
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@TheUnderdog
Annually, the stock market rises about 10% annually. An 8% wealth tax causes the stock market to only rise by 2% a year.
Wtf you have no understanding of the stock market if you think an 8% wealth tax would reduce the growth of the entire stock market by 5 fold.
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@triangle.128k
10%-8%=2%.
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@TheUnderdog
A 8% wealth tax doesn't equate to taking away 8% of the stock market's growth, where on Earth are you getting such a stupid thought?
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@triangle.128k
If the government takes 8% of the stock owned by billionaires, then the only way the gov will get money from that stock is by selling the stock into the market. Due to the law of supply and demand, if the supply of stock in the market increases by 8%, this will cause the rate of increase to the stock to decrease by 8% as well.
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@TheUnderdog
If the government takes 8% of the stock owned by billionaires,
That's not how wealth taxes worth
Due to the law of supply and demand, if the supply of stock in the market increases by 8%,
The "supply" of stocks isn't changed
this will cause the rate of increase to the stock to decrease by 8% as well.
That's not even how supply and demand works
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@triangle.128k
Then how do wealth taxes work, because most billionaire assets are in stock?
The supply of stock market in the stock skyrockets because the billionaires don’t own it anymore.
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@TheUnderdog
Well, if that's you're main concern then allow me to instantly relieve you. The IRS does not accept stock certificates in lieu of cash. Section 14 of the Federal Reserve Act prohibits the US Govt. from owning any stock.
From the 3rd post in this thread. Also,
Annually, the stock market rises about 10% annually. An 8% wealth tax causes the stock market to only rise by 2% a year.
I'm not informed in the slightest on economics, but intuitively, there are several fundamental flaws in your logic in that
1. Billionaires do not own the entirety of the stock market
2. Wealth taxes are invariably progressive taxes
3. You can't directly add or subtract percentages of different "things".