Raglan Niall  May 27

#NZPol
Take time to explain the basics.

Wealth/asset taxes are generally based on 'Net Worth'. If you don't know what this means you will likely think an asset tax will hit you harder than the reality.

Your Net Worth is your assets minus your liabilities
Eg you have a $3 million house, a $2 million mortgage and $100k of loans. Your net worth is $900k and that's what a wealth/asset tax would be based on.

I thought a co-worker was trolling me when he loudly proclaimed he wouldn't be able to afford the Green Party wealth tax so he'd never ever vote for them. After asking some questions I realized he genuinely did not understand 'net worth' and after explaining the above he said fairly quietly, 'I did not know that'.
#Accounting #Econ
#Democracy #TaxWealthNotWork

Show threadFrancis CookMay 27
@Niall the downside is that if you have a 3million house (I assume this is based off market value) despite paying a lot less 15 years ago and paying off your mortgage you might not be able to afford your own house anymore. So hopefully you didn’t have a family or anything awkward like that.
Show threadRaglan Niall  May 27
@dianshuo read the other replies, its not so likely. If you're a couple you don't pay anything on net assets below $4million.
Show threadFrancis CookMay 27

@Niall “it’s not so likely” ?

I don’t object to wealth taxes when they actually do what they say but most of these bright ideas actually end up squeezing the middle not the top. I can’t see how this is different.

Show threadRaglan Niall  6d ago
@dianshuo that's good that you don't object to the principle. How would you structure one? Ideas are useful.
Show threadWorik6d ago
@Niall @dianshuo What successful international models are there?
Show threadRaglan Niall  6d ago
@worik @dianshuo I'm not Google
Edit: sorry that was too blunt. Try here for a good discussion: Gary interviews Gabriel Zucman https://pca.st/episode/74fcf109-e47a-4069-92f2-2da641606793
The economist billionaires fear: this is how we get a wealth tax. Meeting Gabriel Zucman

Gabriel Zucman is the most important economist in the world today. And the one billionaires fear most. His wealth tax proposals have passed France's lower chamber of parliament – and will likely…

Pocket Casts
Show threadWorik6d ago

@Niall @dianshuo

I do not really have time to listen to another podcast!

Are there any examples of wealth taxes being applied in comparable economies to ours?

Show threadMu5d ago
@worik @Niall @dianshuo in that podcast Zucman suggests setting up the tax thresholds so that the richest 100 people in the country pay around 2% of their wealth every year. He also suggests setting up tax in general such that if you are a citizen, you still have to pay taxes to the country for a few years after you leave. He's not suggesting anything as draconian as the USA tax policy of "you pay taxes to the country for your whole life" but thinks a few years would be a good idea.
Show threadWorik

@mu @Niall @dianshuo

> in that podcast Zucman suggests setting up the tax thresholds so that the richest 100 people in the country pay around 2% of their wealth every year.

Ok. I am not arguing that that seems sensible on the face of it

But what I would like to know is what has been tried, how has it worked, what went wrong, what can be done better.

Activist economists (me too) can say anything they please. Data from policies applied is gold.

Look at the experience with rent control...

May 28 at 10:03pmWeb
Show threadRobyn5d ago
@worik
If we can only try things that have already been done, are we stuck forever with a system we know does not work?
@mu @Niall @dianshuo
Show threadWorik5d ago

@RedRobyn @mu @Niall @dianshuo

If we do not pay attention to what has gone before...

...we are fucked

Show threadMu5d ago

@worik @Niall @dianshuo I think all economists are activists.

Where has it been tried before? None of the concepts are new, we have had wealth taxes in the past, we have had thresholds in the past. Most countries tax assets in various ways

I feel you're looking for more detail here than I'm able to give. It would probably be faster and more accurate to listen to the podcast. You may also be able to find a transcript somewhere?

I don't claim to be an expert in this area, that's why I'm listening to the experts.