The Most Effective Way to Tax Wealth: the IN-KIND Method
The Most Effective Way to Tax Wealth: the IN-KIND Method
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There’s a lot of talk about how taxing share grants and stock options potentially harms innovation, as it impacts startup employees. Startup doesn’t have enough cash to attract top tier employees, so they’re offered stock grants as part of compensation which is fair enough. But if they’re taxed, and the stocks are illiquid (pre IPO), the employee is going to end up paying a whole bunch of tax on something that might, in the future, be worth a certain amount.
Collecting the taxes in-kind is a simple and incredibly obvious solution now that I see it.
conservatives like to float the idea of a national sales tax and im always fine with it provided it applies to all financial transactions. Honestly though the land value really seems good but I would like that to really replace all local taxes. Less tax for the person living in an efficiency condo in a complex and more for the mcmansions.
A sales tax disproportionately impacts people who are lower income, as a greater percentage of their earnings go towards purchasing essential goods - and defining exclusions for sales taxes is a whole exercise. Food, easy; heat, ok. But what if i heat with electricity and also drive with electricity? Should clothes be taxed? Where do we draw the line on what constitutes luxury clothing when people buy carhartt for very different reasons depending on their income source. What about diapers, people choose to buy disposables. Condoms? Period products are a shoe-in but what about cups or reusable panties?
I don’t hate the idea, but it is complex. Like most tax schemes…
it does not if all transactions are taxed. every stock and bond sale for instance.