No, you misunderstand. Tax on wealth ANYWHERE in the world (i.e. eliminate all tax loopholes on wealth).
The example you provide is EXACTLY the kinds of loopholes written into the Tax Code for the benefit of the wealthy. Hence, to effectively tax wealth - the tax codes need to be changed.
Example: Net worth of individuals can be calculated (roughly) regardless of where they hide their wealth. Now, TAX this net worth (regardless of where it is hidden - that is not a concern). Hence, TAX Musk's $350 billion (regardless of what state/form or location this ephemeral quantity is). THIS would be an incentive for Musk to SPEND more of his money in the REAL ECONOMY (rather than keep it in the financial economy), thus benefiting not only ordinary people but also the GDP of the country.
A Flat tax is regressive - people on the lower end of the financial socio-economical system end up paying a larger chunk of their "much-needed limited income" under flat taxes, thus increasing inequality.
Eg. Say I earn $40,000. That amount is too little to survive in the US (especially if I have a family) without going into debt. Now, if I'm supposed to pay 20% on a flat tax ($8,000), I'm left with $32,000. How do I manage to survive? If I'm a millionaire or billionaire, 20% of 1 billion is $200 million. I can survive comfortably on $800 million. Not only that - I can easily use the $800 million in the financial markets, etc. to make another $200 million that I just paid in taxes.
No, you misunderstand. Tax on wealth ANYWHERE in the world (i.e. eliminate all tax loopholes on wealth).
The example you provide is EXACTLY the kinds of loopholes written into the Tax Code for the benefit of the wealthy. Hence, to effectively tax wealth - the tax codes need to be changed.
Example: Net worth of individuals can be calculated (roughly) regardless of where they hide their wealth. Now, TAX this net worth (regardless of where it is hidden - that is not a concern). Hence, TAX Musk's $350 billion (regardless of what state/form or location this ephemeral quantity is). THIS would be an incentive for Musk to SPEND more of his money in the REAL ECONOMY (rather than keep it in the financial economy), thus benefiting not only ordinary people but also the GDP of the country.
What ever happened to the concept of a flat tax?
A Flat tax is regressive - people on the lower end of the financial socio-economical system end up paying a larger chunk of their "much-needed limited income" under flat taxes, thus increasing inequality.
Eg. Say I earn $40,000. That amount is too little to survive in the US (especially if I have a family) without going into debt. Now, if I'm supposed to pay 20% on a flat tax ($8,000), I'm left with $32,000. How do I manage to survive? If I'm a millionaire or billionaire, 20% of 1 billion is $200 million. I can survive comfortably on $800 million. Not only that - I can easily use the $800 million in the financial markets, etc. to make another $200 million that I just paid in taxes.