> With a wealth tax it can be highly variable year to year and out of one's control.
It could be designed to be closer to property tax.
> you could find yourself in the situation of having to liquidate assets to pay taxes
Maybe. There are many other ways: the stock pays enough in dividends to cover the tax, the owner has other sources of income, the owner borrows against the stock to pay tax, and so on. In many dual-class structures the privileged class stock becomes common stock when sold so some founders could maintain control even after selling.
Private companies are trickier but still manageable. I don't want to turn this into a long post though.
> many of its proponents see it as a means of reducing inequality and "leveling the playing field".
I see it as a way to reduce income taxes. Welfare states are currently funded by income and payroll taxes aka taxes on labor. For the math to work out you need higher and higher tax rates or more and more workers. And you're fighting an uphill battle because improving productivity constantly reduces the need for workers.
Instead let improved productivity pay for the welfare state. Stop penalizing people for working by taxing them more.
It could be designed to be closer to property tax.
> you could find yourself in the situation of having to liquidate assets to pay taxes
Maybe. There are many other ways: the stock pays enough in dividends to cover the tax, the owner has other sources of income, the owner borrows against the stock to pay tax, and so on. In many dual-class structures the privileged class stock becomes common stock when sold so some founders could maintain control even after selling.
Private companies are trickier but still manageable. I don't want to turn this into a long post though.
> many of its proponents see it as a means of reducing inequality and "leveling the playing field".
I see it as a way to reduce income taxes. Welfare states are currently funded by income and payroll taxes aka taxes on labor. For the math to work out you need higher and higher tax rates or more and more workers. And you're fighting an uphill battle because improving productivity constantly reduces the need for workers.
Instead let improved productivity pay for the welfare state. Stop penalizing people for working by taxing them more.