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View Diary: The Atlantic's 15 Big Ideas (27 comments)

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  •  you're right. it's not equitable. (0+ / 0-)

    the old folks might have to sell their home and move to one they can afford.

    which is what happens nowadays anyway, when neighborhoods gentrify.

    ultimately, the rich are going to own more stuff. way more stuff. however, the key "trick" here is understanding that their disposable income gets spent in places that have inflated real estate values. what makes this scheme subtle is exactly that it automatically taxes the incomes of the wealthy by raising the business costs of the businesses they frequent -- luxury hotels, downtown restaurants, sports arenas, country clubs, posh boutiques. so it is similar to a progressive VAT. it would take some extensive analysis to determine how much more taxes the couple with the $350K income would, in the aggregate, be paying than would the senior citizens. moreover, there will be downward pressure on high salaries, because businesses would be unable to avoid the tax burden of property values, and so would be forced to lower compensation at the high end.

    To put the torture behind us is, inevitably, to put it in front of us.

    by UntimelyRippd on Sat Jun 20, 2009 at 07:14:07 AM PDT

    [ Parent ]

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