How about a progressive Capital Acquisitions Tax?

[Purple]

Another tax on work and wealth creation

(Pension pots are predominantly accumulated from earnings, as pension contributions funded from passive income don't qualify for tax relief.)

Taxes on earnings are taxes on wealth creation. The deferred income tax on your pension is a deferred tax on wealth creation. A tax on the appreciation of the value of your pension fund is a different thing but yes, it's not nearly as clear cut as a property tax.

 

[Purple]

I only misunderstood it because you didn't communicate it concisely, as evidenced by the fact that you later clarified it. And I did query it literally minutes after you posted it.

If that makes you happy then that's fine by me.

 

[Purple]

Well, you are determined to think that it is.

taking wealth from someone or some business through taxation and spending it on something else is wealth redistribution. There's nothing wrong with that.

 

[T McGibney]

If that makes you happy then that's fine by me.

Ditto.

 

[Purple]

Ditto.

All's well that ends well

 

[Itchy]

Great discussion folks, this line got me through the last page and a half...

We're talking about creating wealth, not creating bicycles. If I'm currently keeping sheep on the best site in the world for creating bicycles....

 

[The Horseman]

Their wealth improves but if it improves through asset price inflation then they are not creating wealth. If it improves through working in the traded goods and services sector then they probably are creating real wealth in the economy. They are also not improving their wealth through their sacrifices, but rather due to the appreciation of existing assets. I'm in favour of taxes that encourage real wealth creation rather that taxes which penalise it. I'm not in favour of a greater net tax take but a shift away from taxing wealth creation and onto wealth retention.

Yes, people who improve their wealth through their sacrifices, in other words through their work, should not be punished. High taxes on labour do exactly that.
People who choose not to make sacrifices but simply own assets are currently rewarded by the hard work of others; their assets appreciate due to the economic activity of others but those hard workers are taxed up to the hilt. That doesn't seem fair to me.

If people increase their wealth through sacrifice (earning more than they spend) and use this excess to purchase a home or invest I apension they shouldn't be penalised with wealth taxes.

People acquire assets through sacrifice, they either earn income above their needs or they have acquired them from family. Whether you accept it or not at some point these assets are a result of foregoing spending of income either by the owner of the asset or by the person who has given the asset.

High taxes do indeed punish labour but so too do wealth taxes. A wealth tax acts as a disincentive to better oneself and plan for the future. One of the main reasons people better themselves is to enjoy a better standard of living as they get older.

Imposing a punitive wealth tax (even a small yearly % figure) when compounded over the medium term can equate to a significant figure.

 

[Purple]

If people increase their wealth through sacrifice (earning more than they spend) and use this excess to purchase a home or invest I a pension they shouldn't be penalised with wealth taxes.

I agree, and we penalise that hard work with income taxes and charges of over 50%. Reduce the income tax and introduce a wealth tax to balance things out.

People acquire assets through sacrifice, they either earn income above their needs or they have acquired them from family.

Acquiring them from their family is not a sacrifice.

Whether you accept it or not at some point these assets are a result of foregoing spending of income either by the owner of the asset or by the person who has given the asset.

Yes, but a sacrifice by someone else is not your sacrifice.

High taxes do indeed punish labour but so too do wealth taxes. A wealth tax acts as a disincentive to better oneself and plan for the future.

Over 50% marginal income tax rates are more of a disincentive than a small wealth tax.
The property tax on a €1.3 million house is €1,400 a year. That's ridiculously low. If the owned can't afford to pay it and it rolls over as an estate tax it's still tiny.

One of the main reasons people better themselves is to enjoy a better standard of living as they get older.

Better themselves? That's a very broad definition of increasing your net wealth.

Imposing a punitive wealth tax (even a small yearly % figure) when compounded over the medium term can equate to a significant figure.

The property tax above, compounded over 30 years is still well under 10% of the value of the property. Is that going to stop you buying the house? Is that going to mean you stop saving and investing?