Applying both would radically simplify our tax code and transform our attractiveness to performance minded corporate entities and assets, while freeing companies and individuals from the annual ritual of income based tax accounting.
You make a lot of dubious claims with no supporting evidence. How would taxing wealth simplify our tax code?
The average taxpayer has a hard enough time calculating their taxes currently even though their employer hands them a document stating exactly how much they earned. All they have to do is figure out their deductions and credits.
How do you figure they’d do when they have to figure out the personal/family net worth? That TV you bought last March. How much has it depreciated? And those antique vases your Aunt Trudy left you in her will. How much have those appreciated? How much has your car depreciated? What’s the current fair market value of your real estate holdings? What is the current fair market value of all of your clothes?
If you think the current annual rite of filing income taxes is difficult, you’ve seen nothing compared to people wandering around their home trying the calculate the value of every asset they own.
A tax on wealth does not need to be so onerous as to prevent wealth accumulation. However, it more directly addresses the problem of dead and inefficient distribution and investment of money…
Well it would certainly do that. A tax on wealth discourages saving and investment (i.e. means of building wealth) in favor of spending. Taken to extreme ends, it would eliminate investment entirely. At lesser extremes, it would only make investment available to those with extremely high incomes that can afford to pay significantly higher interest rates. Banks would cease giving people loans for cars, houses, college educations etc. They wouldn’t have access to the funds to make those sorts of loans. People would be dissuaded from investing in their own IRAs/401Ks, etc… leaving then entirely dependent on Social Security to fund their retirement.
The problem with eliminating an income tax and changing to a wealth tax is that it would encourage spending money on things that have no lasting value.