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Originally Posted by sebastian_dangerfield
I actually really like that concept. The problem is fighting the argument that the policy punishes saving. You’d have to build in carve outs for the non-crazy rich savers who accrue significant wealth by simply spending less than they earn and investing wisely. That’s doable, but would be a complex calculation.
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Just exclude 401ks and you'll cover most middle class savers. But really there doesn't need to be an exception for people investing reasonably, they can still pay their fair share.
There are also a lot of investment incentives you could undo as both costing revenue and distorting the economy. Just delete the oil and gas and insurance subsections of the Tax Code. And get rid of capital gains / ordinary income differentials. You will have a similar effect as the wealth tax - you'll make investing more sector-neutral and less tax driven, while taking revenue from the broadest possible tax base.
Traditionally, there was also a class coming up by their bootstrap who invested in two-flats or farmland, but the farmland investors are now only of historical interest and the two flatters are becoming rarer and rarer.
