> It shouldnt be difficult to determine when it is that a wealthy person hired a less wealthy person to do the unsavory thing in order to exploit the lower fine.
How? You would have to prove collusion between them rather than just a normal contractor-type relationship where the contractor does something unsavory entirely of their own volition.
> Say we return to a robust progressive income tax system where if you make over say, 10 million dollars a year, you get taxed 90%. The arbitrage loophole doesnt work because, what, are you going to split up your 10M/Year income between 20 different less wealthy people and have them spend your money for you in order to avoid the tax?
Of course. That's exactly what happens in those types of situations. As soon as you hit the 90% rate, the next thing you know the spouse is on the payroll, or the kids, the parents, brothers and sisters, in-laws, cousins, friends of the family etc.
> What am I saying, of course the rich would find a way to skirt taxes. It's like, their whole shtick. I loathe the whole "Of course I'll do every shady, up to and including illegal things, to pay less taxes because if theres a loophole I want to exploit it". No, in fact you are acting being an anti-social cretin who neglects to give back to the society that produced the material conditions that allows for your wealth.
Right, which is why you need policies they can't avoid instead of ones like this which they can.
The best way to do this is a UBI funded by a flat tax. The rich can't arbitrage a flat rate and the UBI makes it progressive (meaning net transfer from rich to poor).
To the first point, good question. I dont know how we could solve that problem writ large.
As to UBI, I am all for it but I have concerns as well. Like a super basic one being what is to stop commodity prices inflating proportionately to the new lowest possible income set by UBI. Say UBI is 20k for every human on Earth. Great, but what's to stop the rise in prices of commodities to essentially UBI adjusted income + original price of commodity? Im genuinely curious what you think.
> Like a super basic one being what is to stop commodity prices inflating proportionately to the new lowest possible income set by UBI. Say UBI is 20k for every human on Earth. Great, but what's to stop the rise in prices of commodities to essentially UBI adjusted income + original price of commodity? Im genuinely curious what you think.
So this is always the argument people make against a UBI because it sounds plausible and the answer is complicated.
The first thing to notice is that the same concern is present for any method of reducing poverty/inequality whatsoever. If the poor have more money then they'll want to buy more stuff and by supply and demand the higher demand raises the price of certain products. It's a thing that happens.
But the only way it eats 100% of the money is if everything has zero price elasticity of supply. Which it doesn't. For example, if people want more land, well, sorry, the supply is pretty much fixed. But if people want more housing, that we know how to construct, so if more people could afford it then we could just build more. (If we have asinine laws against building more housing, well, that is an independent problem with an independent solution.)
And most of the things people want are not practically limited in supply. If more people could afford a sailboat then businesses would make more sailboats. If more people could afford new clothes then businesses would make more clothes. It's not as if there is an insufficient supply of wood or cotton -- for many products the dominant cost is the R&D or some other fixed cost and having more buyers could make the unit price come down.
How? You would have to prove collusion between them rather than just a normal contractor-type relationship where the contractor does something unsavory entirely of their own volition.
> Say we return to a robust progressive income tax system where if you make over say, 10 million dollars a year, you get taxed 90%. The arbitrage loophole doesnt work because, what, are you going to split up your 10M/Year income between 20 different less wealthy people and have them spend your money for you in order to avoid the tax?
Of course. That's exactly what happens in those types of situations. As soon as you hit the 90% rate, the next thing you know the spouse is on the payroll, or the kids, the parents, brothers and sisters, in-laws, cousins, friends of the family etc.
> What am I saying, of course the rich would find a way to skirt taxes. It's like, their whole shtick. I loathe the whole "Of course I'll do every shady, up to and including illegal things, to pay less taxes because if theres a loophole I want to exploit it". No, in fact you are acting being an anti-social cretin who neglects to give back to the society that produced the material conditions that allows for your wealth.
Right, which is why you need policies they can't avoid instead of ones like this which they can.
The best way to do this is a UBI funded by a flat tax. The rich can't arbitrage a flat rate and the UBI makes it progressive (meaning net transfer from rich to poor).