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Consumption taxes are generally considered the best taxes, but they are pretty damn regressive. This sounds... really good from an efficiency standpoint, is appropriately targeted on the wealthy (though we need some way to exclude middle class HELOCs) and seems much harder to game than a consumption tax too. Go run for office.
Only apply it above a given net worth that even very lucky and geographically well situated middle class people will not reach.
I would consider it- I'd make a good crank candidate- but I suspect the background checking would result in this very forum shutting down, and besides, it's incredibly expensive.
Stolen valor! Get your own presidential run-viable topic!
I like this one solely for the interesting incentive structure it could create where prospective political operatives deliberately risk sending themselves to prison and then bribe during the selection.
Only if we survey everyone who would want to as a Top Secret poll and then exclude them from the selection process. I'd rig an election for this idea.
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yes HELOCs seem to be the corner-case that presents a problem, and unfortunately any carve out there is just likely to be repealed later down the line. The government loves another way to get free money. I think the easy answer is to tie to just capital gains based collateral, not property.
Ewww. Probably says something about me that I find the idea of being a politician relegated to the narcissistic and sociopathic.
HELOCs are a bullet I am willing to swallow. Tax-free consumption out of unrealised capital gains on primary residences is the same mischief as tax-free consumption out of unrealised capital gains on founders' stock, and causes the same social problems in a more distributed way. Protect the middle class with a $100,000 lifetime exemption.
I'm not sure how you distinguish a concentrated zero from a distributed one.
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