Mastodawn

#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

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Francis Cook 6d ago

@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.

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Global thought leader

@dianshuo @Niall Well, maybe that's just the way it has to be. The null hypothesis is that we continue to pile more and more taxes onto people who earn a wage, which means your hypothetical pays no tax at all, and we continue to crush everyone else.

Yes, paying taxes sucks.