Republicans Have Only Themselves To Blame For Piketty And The Pope
...What? After denouncing Piketty’s wealth tax, a free-market, pro-growth conservative is proposing a tax on wealth? Yes, it’s called the FairTax, and it would involve the confiscation of a portion of the present value of all existing wealth.
The FairTax would be a federal retail sales tax, and it would be levied on the purchase of all new goods and services. Replacing payroll taxes, the income tax, the capital gains tax, the corporate income tax, and the death tax with a (say) 15% (inclusive) FairTax would produce explosive economic growth.
With a stable U.S. dollar and the FairTax, every big company in the world would move its headquarters to the U.S (and U.S.-based Pfizer, the world’s largest drug company, would not currently be trying to escape to the U.K. by buying AstraZeneca).
The FairTax would induce every billionaire on earth to relocate to the Land of the Free. Capital would pour in from all over the globe, and make the U.S. the preferred location for manufacturing for export. Within a year, it would seem as if the Bush 43/Obama Great Stagnation had been nothing more than a bad dream.
Because all existing wealth will be liquidated and spent someday, and because assets earn a compounded return until that someday arrives, a 15% FairTax would be equivalent to a 15% tax on the present value of all existing wealth. It would also amount to a 15% tax on all future income.
The tax system proposed by Thomas Piketty would destroy both income and wealth in a doomed and futile effort to get more than can be gotten. The FairTax would multiply both income and wealth, almost as if they were loaves and fishes (maybe Pope Francis would approve of that). The FairTax would then tax away a small share of both, leaving both the people and the federal government much better off than they are now...
This article is published in full, here.