A tax on financial trading, such as was proposed in S. 1371
I support a tax on financial trading, as long as it’s small enough to not impact retirement pensions.
with the closing of the carried interest loophole that makes hedge fund income taxable
I don’t support this, for two reasons. The first is that the number of people in the country that can avail themselves of this in an egregious fashion is tiny, so getting rid of it for them doesn’t raise any money. The second is that it changes the equation on how much money venture capitalists are willing to put at risk, and thus poses a threat entrepreneurs.
There are a thousand different ways to institute consumption taxes that would only impact wealthier people, the revenue from which could create a more equitable distribution of wealth. VATs for cars costing over $100k. For houses more than $2M. For yachts greater than 40 ft. This is called, “paying back to a society from which you’ve disproportionately benefited.”
You should be aware that the “luxury tax” idea was tried in the 1990s, and destroyed the domestic yacht business, which was ironic because much of that business was centered in Maine, which is where the Senate supporter of the bill, George Mitchell, was from. (Then, Mitchell had to embarrassingly flip, and support George Bush’s repeal of the legislation.)
And, of course, this article just talks about yachts. Much more has been written about auto dealerships, which taken together is a major source of good-paying blue collar jobs, having to lay off workers because of the taxes. (Even if the dealerships were “normal”, in that most of their vehicles sold were not subject to the luxury tax, those vehicles in their lineups that were in that class accounted for a disproportionate amount of the dealerships revenue and profit.)
Point here is that means-tested consumption taxes, are tricky things; if you set a auto luxury tax at 100K, for example, it will amaze you how many cars are suddenly priced at $99,999. And how the used market for luxury cars suddenly heats up. Because out of all of us, the rich have by far the best ability to jockey funds around to their advantage.
The lesson from the 90’s was that something that sounds simple and sounds fair can have virtually no effect on revenues whilst destroying American jobs.
Blaming the bogeyman of regulation is fun, until someone asks the complainer, “exactly which regulation is preventing your business from reaching its potential?”. Then there’s crickets, because regulation, as a concept, is considered bad.
Well, you gotta listen, Ron. :-) Besides, you have an evidentiary problem that’s starting to well up. We passed and implemented a lot of new regulations during the Obama period. GDP got stuck at 2%. Trump’s been unable to get anything passed while in office, so all he’s really be able to do is roll back regulations by executive order. Now, we’re running at 3%.
Interesting datapoint. And more:
To Help Small Business, Cut Regulation
One of the best ways for Congress to help small businesses would be to reduce their regulatory burden, which is heavier…
Government Is Standing In The Way Of Millennial Entrepreneurs
This article is coauthored with Jonathan Nelson and the second part in a series on millennial entrepreneurs. In Part 1…
Regulation ensures the food you eat isn’t poison.
Nobody is arguing that we need a no-regulation environment, Ron. Stop with the straw men arguments.
And these are the regulations that Republicans attack first.
What they attack first are regulations that have a high cost of compliance and are not proven to have a substantial benefit. Second on the list tend to be regulations which stifle new business startup.
Actually, he’d benefit greatly, since more people would have more disposable income to go on vacation and enjoy his resorts. See? Everyone wins.
Somehow I doubt if people making minimum wage are suddenly going to get so much of a benefit that they’re going to start booking $500 a night resorts.
Besides, even if that were to happen, the moment he noticed that he’s regularly turning away business, he’d jack the price up. Supply and demand and all that.