Wealth Tax Proposal Takes Aim at Investments

Value is determined by “the last trade”. And guess who causes that trade to happen, thus setting the “value”? Yes, it’s your new neighbors!

When the new neighbors suddenly decide to pay a lot more for roughly the same house, that causes your house value to go up and be reassessed at the new value, and then your taxes rise. In some states (like mine) that does not generally apply.

Its one of the few reasons (only?) I like the consumption tax or a VAT system. Easy to calculate, easy to collect. Though I think the VAT system is harder to bypass (being collected at all points along the way) than a consumption tax is (one place of collection, therefore one place to cheat from). It’s the highly regressive nature that is repulsive to me. Lets face it, our current system is expensive to collect, easy to cheat, full of loopholes that benefit the rich at the expense of the poor.


People in UK say their VAT system is not so simple. They have multiple categories. Negotiations are not trivial.

In Missouri our official state sales tax is 4.5%. Most places you pay close to 10%. Most stores list two lines but a full list would be at least five lines. The store next door may have a different rate.

Tax is never easy. Too easy for legislators to add more or make exceptions.

If you are in business making something in Europe the VAT is a headache. The accounting is at every step of the production process.