Reply #7: wealth is also, albeit imperfectly, subject to property taxes

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it's not exact, and varies from town to town, but you have to be fairly well off to be subject to taxes on a multi-million dollar house.

moreover, wealth and income are linked in the sense that great wealth can effortlessly generate great income. a billionaire can put it all in a savings account and generate more income than most of us will earn in a lifetime of labor.



taxing income as a proxy for wealth, even if theoretically incorrect from a policy standpoint, has a few pragmatic advantages over taxing wealth. primarily, it is much easier to detect income and enforce a tax on it. by definition, there is a counterparty in the case of any income, and so there is a fear that the payer will report the recipient. wealth, on the other hand, can be more readily moved or hidden or disguised. the exception is property, and surprise, surprise, there's a tax on that.


one more thought, i'm not sure the constitution permits a wealth tax. there's an amendment explicitly permitting an income tax.