Tag Archives: Wealth tax

Wealth Inequality and Wealth Taxes

In a series of blog posts, John Cochrane criticizes the Saez-Zucman proposal for higher wealth taxes. In posts #1 to #4 he argues that economic arguments for wealth taxes are inconsistent or not convincing. In post #5 he concludes that Saez-Zucman truly are motivated by political objectives which are grounded in the view that wealth of the rich is ill-gotten or that the rich have a disproportionate, negative influence on politics.

Saez and Zucman want to confiscate billionaires’ wealth, because they think billionaires have too much political power, billionaires all got their money unjustly, and somehow though big government cronyism is the problem, bigger government is the answer.

Cochrane rejects this view.

India’s Fight Against Shady Cash Holdings

India follows suggestions to fight tax evasion by taking high denomination notes out of circulation … and introducing new ones. Until the end of the year, Indians may exchange the old banknotes against new ones, at banks or post offices, by identifying themselves. On his blog, J P Koning discusses earlier demonetization episodes in Iraq and Sweden.

India’s move does not exactly follow the well publicized suggestions currently debated. But it might work.