Comment Re:Quite the opposite (Score 1) 196
Shares where? UK can tax UK shares.
UK can't tax non uk companies
So what happens when the company pays a dividend equal to the spending of the rich person. They pay tax on the dividend, which is their spending after tax.
End result, they don't get taxed on their entire earnings, because the earnings are the companies.
Now I can see your response. Ah, we tax share ownership. We make it penal to own shares. Not without considerable side effects, but the rich just put the ownship into trust, and its game over.
That's the way the game has been played and will be played more and more.
So countries are going to have to resort to taxing consumption, and non-tradeable goods. However, that won't substain current spending, or service the debts. So its defaults.
How can the poor be reimbursed when they don't have the money to re-imburse them?
Ah they can print it. Perhaps that's the plan. The problem is that the off the book debts that the poor are so dependent on, welfare and pensions, are inflation linked. You can't print your way out of inflation linked debt.
So its going to be default, and that hits the poor.
It's pretty dire, but the root cause is states running a Ponzi, rather than the people paying 50% plus of their income and then being denied services.