Cosmin Posted October 17, 2013 Posted October 17, 2013 http://www.imf.org/external/pubs/ft/fm/2013/02/fmindex.htm -> "Download Full Text" The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability.1 The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). There have been illustrious supporters, including Pigou, Ricardo, Schumpeter, and—until he changed his mind—Keynes. The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away (these, in turn, are a particular form of wealth tax—on bondholders—that also falls on nonresidents). Theft never sounded so slimy.
Wesley Posted October 17, 2013 Posted October 17, 2013 This was how the income tax started. Just a temporary, small amount on only the wealthiest people.
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