Can We Appropriate the Rich? (Re: Surplus NOT from CapitalGainsReceipts

[Max Sawicky]

> > Second, once you tax some wealth away,
> > it's not there next year to tax, either
> > thru a wealth tax or an income tax. You
> > can't keep pounding on the same asset
> > indefinitely, as you can with an income
> > tax.
>
> This is wrong. The only thing that's not there is the
fraction you took. In
> your 8% return, 1% tax example it works out as follows:
>
> year 1 wealth - $1,000,000
> year 2 wealth - %1,000,000 + 80,000 - 10,000 = $1,070,000
>
> The wealth isn't "taxed away". It just doesn't grow as
fast.   bill

A tax rate on income of less than 100% is taxation.
A rate in excess of 100% is confiscation or expropriation.
A two percent wealth tax when the ROR is one percent is
the latter.  What you confiscate this year is not there the
following year, either to tax or confiscate.  A consistent
policy of confiscation does not mean slower growth;
it means negative growth.

mbs