This just begs the question though, what is the right way to tax?
Assuming that you are redistributing wealth (as you describe above), taxing wealth instead of income has a profound effect. It creates an incentive for every individual to increase the total wealth in the system, no matter who creates it, or where it's created. When you tax income, it makes no difference to you whether the income was created wealth, or merely captured.
Assuming that you are redistributing wealth (as you describe above), taxing wealth instead of income has a profound effect. It creates an incentive for every individual to increase the total wealth in the system, no matter who creates it, or where it's created. When you tax income, it makes no difference to you whether the income was created wealth, or merely captured.