Comments on: An income tax is not a wealth tax http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: uncle f http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/comment-page-1/#comment-4271 Thu, 16 Jul 2009 19:20:26 +0000 http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/#comment-4271 When I checked the IRS website the accumulated wealth in the USA is about 60 trillion dollars…. so a 1 percent
tax on net worth would pay for health care reform and the budget deficit. We do not tax the rich in this country we tax income…. The rich make the rules that is why this tax is never considered….

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By: jzw http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/comment-page-1/#comment-4128 Tue, 14 Jul 2009 14:52:27 +0000 http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/#comment-4128 >> Why add the adjective “unearned” before wealth. Is there a tax regime that can distinguish earned and unearned wealth?

Possibly not all forms of unearned wealth but some. For example a tax based on land price appreciation. If you buy land (with or without a house on it) and then sell it for a profit – that would be unearned income since no work was done.

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By: jonathan http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/comment-page-1/#comment-4103 Mon, 13 Jul 2009 23:54:38 +0000 http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/#comment-4103 Florida used to have a wealth tax. They taxed the value of intangibles, meaning the value of stock accounts. That is not an income surtax, which is your point.

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By: jpe http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/comment-page-1/#comment-4070 Mon, 13 Jul 2009 18:34:08 +0000 http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/#comment-4070 Good catch.

The tax is different from the usual income tax in that it’s a tax on gross income (eg, no deductions are allowed). It’s odd that the article was (accidentally) correct that it’s a different sort of tax then the feds typically levy but still missed the distinguishing difference.

“Presumably, you mean income from sources other than wages. But is that really any different?”

Yes. Inherited or gifted wealth is wholly gratuitous. Quite different than earned income or even investment income.

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By: Kyle http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/comment-page-1/#comment-4043 Mon, 13 Jul 2009 11:01:21 +0000 http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/#comment-4043 I highly doubt anyone will be so critical of any such tax once it’s planned purpose comes to fruition. Walking out of a hospital after major surgery and an extended stay without a bill that will take you a lifetime to repay should make a (maximum) 3% tax seem a pittance. Very few have the accessible capital or airtight insurance plan to produce the same result, and many who think they do will become quick to decry government inaction when their safety net shows a tear.

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By: Curmudgeon http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/comment-page-1/#comment-4029 Sun, 12 Jul 2009 16:59:44 +0000 http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/#comment-4029 Oh, Felix, just when I thought you had reasonable opinions. Unearned income is really an artificial pejorative that provides political cover for governments to extract higher tax rates; note, as an example, Massachusetts taxes “unearned income” at double the rate of salary or wage.

I have unearned income, as a middle-income taxpayer, because I spent prudently and saved over the course of decades. I recognize that I have become roped into this pejorative, not because of inheritance, of which I will never receive, but because I have exhibited supposedly good behavior in my financial life.

You, however, associate me with trust fund babies and lottery winners, and I object. Is the reason for your attitude that you are one of those who cannot spend prudently and save?

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By: Doug Pascover http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/comment-page-1/#comment-4028 Sun, 12 Jul 2009 13:49:03 +0000 http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/#comment-4028 Why add the adjective “unearned” before wealth. Is there a tax regime that can distinguish earned and unearned wealth?

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By: Dan http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/comment-page-1/#comment-4027 Sun, 12 Jul 2009 13:38:44 +0000 http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/#comment-4027 “When the people find they can vote themselves money, that will herald the end of the republic.”
– Ben Franklin

This is a reason long term outlooks by so many experts have dimmed, far beyond this recession.

There is hope in that there are different countries and states with different tax structures which showcase outcomes in terms of long-run growth differences.

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By: Linda R http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/comment-page-1/#comment-4023 Sun, 12 Jul 2009 10:25:05 +0000 http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/#comment-4023 I think Brian’s right, but I’d add that they seem to be using “Wealth” as a socio-economic class, rather than a type of income. Sort of like if they said “a tax on poverty.” I wonder how long it will take before we hear that one. If Sterling is right, I hope it will be soon. :-)

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By: Ian http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/comment-page-1/#comment-4022 Sun, 12 Jul 2009 05:39:57 +0000 http://blogs.reuters.com/felix-salmon/2009/07/11/an-income-tax-is-not-a-wealth-tax/#comment-4022 Yea, pretty sooon, we will have an AIR BREATHING TAX, and OBAMA DRIVEWAY TOLLS on our PRIVATE LAWN.

TO FUND HEALTH CARE OBAMAMIA!

MAYBE THEN WILL AMERICA WAKE UP?

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