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Joined 3 years ago
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Cake day: June 14th, 2023

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  • Most of the current plans for wealth taxes start in the region of $5-$50 million, taxing wealth above that bracket (like other progressive taxes). Do you expect to save $5 million, let alone $50 million? If not, you won’t pay any wealth tax.

    Many plans also exclude your ‘family house’ from that, so you could have a $3m house and $4m in the bank and still pay no wealth tax - you’re rich, but not filthy rich.

    Most of the seriously proposed tax rates are also in the 1-3% range, maybe 5% on the very high end. Again, of wealth above that threshold.

    There is also some argument about hoarding that $200k (again, more like $20m) you saved rather than using it. If you spend it eating out, drinking, getting your house renovated, flying somewhere - then you end up paying tax and spending money and there’s some trickle down. If it sits in a bank account or in stocks or real estate, less so.