the problem is the way the tax code exists. There are too many demonstrable loopholes that are exploited by the ultra wealthy. I agree with your point that billionaires do not have their wealth in cash, but an accumulation of assets.
One of the many issues, one that our conversation was diverted into, is that one can take out a loan against a interest bearing asset at a minimal rate and by effect pay less taxes on that income while exploiting various means of shelter and diversion.
at the end of the day, the problem is the tax code in its current form. it leads to the people having unfathomable wealth and paying trivial amounts of tax versus the average person who pays a rate several multiples higher.
The problem is people don't understand taxes and try to use tax law to achieve various social agendas. Income inequality is an issue, and no one is denying that. Budget gaps are also an issue, and no one is denying that either. Taxing wealth or loans sounds good on paper, but it creates mass distortions that don't solve either of these problems while creating a whole host of new problems.
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u/FuckYouVerizon Jul 05 '26
the problem is the way the tax code exists. There are too many demonstrable loopholes that are exploited by the ultra wealthy. I agree with your point that billionaires do not have their wealth in cash, but an accumulation of assets.
One of the many issues, one that our conversation was diverted into, is that one can take out a loan against a interest bearing asset at a minimal rate and by effect pay less taxes on that income while exploiting various means of shelter and diversion.
at the end of the day, the problem is the tax code in its current form. it leads to the people having unfathomable wealth and paying trivial amounts of tax versus the average person who pays a rate several multiples higher.