The idea is that “rich people spend their money” - which, let’s be honest, is blatantly untrue.
The rich don’t spend their own money. They trade favours. Hell, if you have $1mil on your hand, you can easily walk into a “rich people bank”, open an account and get free shit every month, beyond the very generous interest rates. Free concert/theatre tickets, and such. It’s like a casino hotel that tries to get you to stay with the freebies, but on an “I have a few million dollars in your bank” level.
Frankly said, whether they spend their money or not is their business. If they are involved in shenenigans like you described that needs to be regulated, because it sure looks like tax evasion.
And regarding the proposed tax (quoting the linked article):
“The Millionaire Tax will impose an additional 2% income tax on the top 1% in NYC, who are earning over $1 million per year”.
So this tax in no way designed to tax their wealth, but merely their income by another measly 2%.
Nobody will become poor because of this. Some income millionaires just become slightly slower even more rich than they already are.
Have them move elsewhere and see whether they can keep their annual income in the millions there.
I, for one, am willing to call their bluff.
And once that is done, implement a wealth tax for the people who own x million USD.
To keep them from freaking out, it can be as low as 5% annually, because that would still allow them to generate a net increase of their wealth.
If they complain, increase the tax and start draining their fortune.
Mist of their true income won’t be touched. You don’t get taxes for holding stock. You don’t get taxed for borrowing. So, a lot of billionaires borrow against their stock to have spending money without paying income taxes.
And that is the real reason they want interest rates to be low. So the leech class can get better rates on their untaxed income from borrowing against stocks.
Borrowing against stocks should be considered realizing gains from them and taxed as such.
And even if some of them really move: is it worse them not paying taxes while not being there at all?
I don’t see the the core of their threat.
The idea is that “rich people spend their money” - which, let’s be honest, is blatantly untrue.
The rich don’t spend their own money. They trade favours. Hell, if you have $1mil on your hand, you can easily walk into a “rich people bank”, open an account and get free shit every month, beyond the very generous interest rates. Free concert/theatre tickets, and such. It’s like a casino hotel that tries to get you to stay with the freebies, but on an “I have a few million dollars in your bank” level.
Frankly said, whether they spend their money or not is their business. If they are involved in shenenigans like you described that needs to be regulated, because it sure looks like tax evasion.
And regarding the proposed tax (quoting the linked article): “The Millionaire Tax will impose an additional 2% income tax on the top 1% in NYC, who are earning over $1 million per year”.
So this tax in no way designed to tax their wealth, but merely their income by another measly 2%.
Nobody will become poor because of this. Some income millionaires just become slightly slower even more rich than they already are.
Have them move elsewhere and see whether they can keep their annual income in the millions there.
I, for one, am willing to call their bluff.
And once that is done, implement a wealth tax for the people who own x million USD.
To keep them from freaking out, it can be as low as 5% annually, because that would still allow them to generate a net increase of their wealth.
If they complain, increase the tax and start draining their fortune.
Mist of their true income won’t be touched. You don’t get taxes for holding stock. You don’t get taxed for borrowing. So, a lot of billionaires borrow against their stock to have spending money without paying income taxes.
And that is the real reason they want interest rates to be low. So the leech class can get better rates on their untaxed income from borrowing against stocks.
Borrowing against stocks should be considered realizing gains from them and taxed as such.
Ok, let’s call it ‘taxable income’ then to have a basis of what is going to be taxed (more).