Player1x3 said:
FUCK ANYONE THAT IS MORE SUCCESSFUL THAN ME !!!! I DESERVE IT MORE ANYWAYS... |
A 1% business transaction tax doesn't generically target rich people. It targets "rich bitches" - specifically, rich people who keep investing their money in very short term bursts, trying to "play the stockmarket".
Those who actually earn their money would be practically unaffected - if they invest in long term investment options, which serve to help boost the economy, they only get hit by that 1% tax once, and thus are only slightly impacted.
Those who shuffle their money around constantly, which does not serve to boost the economy at all and instead only serves to make the stockmarket and related trading context more volatile, get hit by the 1% tax every time they do it, so it all clocks up as they keep doing it.
If they want to, say, put money on one stock each day, then take it out the next day to invest in another stock, then in one year (365 days - ignoring the issue of weekends and holidays), assuming that their remaining money after the 1% tax removal is all that is reinvested, and that they make no net money, they pay 97.45% of the money they started with in tax. They effectively have to make 1.01% profit on each transaction in order to break even after tax - and that's a tall order when you're making such short investments.
Such a simple tax serves to severely discourage shuffling of money, and thus greatly prefers long investments over short ones. It's a much more efficient method than a capital gains tax that works differently for long-term investments than for short ones, because capital gains taxes only work on profits, and thus there's no risk of losing your money to the government due to shuffling of money with a capital gains tax.
You could call this a capital revenue tax, in a sense.
