Flat tax on unrealized capital gains
Dr. Arthur Laffer proposed a bidirectional flat tax on the annual change in unrealized capital gains as a superior, non-destructive alternative to a wealth tax.
The argument
Laffer argued that taxing the annual net change in wealth (gains minus deductible losses) at a low flat rate of 11% to 13% would close loopholes that allow ultra-wealthy individuals to avoid taxes indefinitely, without the capital flight associated with traditional wealth taxes.
The thesis, stress-tested
✓ What validates it
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▸ Risks discussed
- ▸Political infeasibility of passing a tax on unrealized gains
- ▸Liquidity challenges for non-billionaire asset holders if applied broadly
Hear it yourself
"I don't know the numbers correctly, so some of your viewers can shout at me. But I think it makes us energy net exporters, with a huge increase in the price of oil because of Iran, and the Strait Of Hormuz, etcetera. The net effect on The US economy has been positive. Mhmm. You know, The US supplies more energy oil carbon based products than it uses. And so, therefore, it has been a net plus for The US, although it's been a really bad bummer for consumers. It's been a great one for producers in The US and assuring and solidifying our position on that."
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