Modeling a Wealth Tax
August 2020Some politicians are proposing to introduce wealth taxes in addition to income and capital gains taxes. Let's try modeling the effects of various levels of wealth tax to see what they would mean in practice for a startup founder.Suppose you start a successful startup in your twenties, and then live for another 60 years. How much of your stock will a wealth tax consume?If the wealth tax applies to all your assets, it's easy to calculate its effect.
- ▪August 2020Some politicians are proposing to introduce wealth taxes in addition to income and capital gains taxes.
- ▪Let's try modeling the effects of various levels of wealth tax to see what they would mean in practice for a startup founder.Suppose you start a successful startup in your twenties, and then live for another 60 years.
- ▪How much of your stock will a wealth tax consume?If the wealth tax applies to all your assets, it's easy to calculate its effect.
2 outlets in our directory ran this story, first to last over 25 hours. All of the coverage we found sits in one bucket: centre. That one-sidedness is itself worth noticing.
- ▪ With the Wealth Tax, Progressives Are After You — RealClear Markets
Paul Graham — Essays files mainly under blogs. We currently carry 219 of its stories.
Opening excerpt (first ~120 words) tap to expand
August 2020Some politicians are proposing to introduce wealth taxes in addition to income and capital gains taxes. Let's try modeling the effects of various levels of wealth tax to see what they would mean in practice for a startup founder.Suppose you start a successful startup in your twenties, and then live for another 60 years. How much of your stock will a wealth tax consume?If the wealth tax applies to all your assets, it's easy to calculate its effect. A wealth tax of 1% means you get to keep 99% of your stock each year. After 60 years the proportion of stock you'll have left will be .99^60, or .547.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Paul Graham — Essays.