Capital Taxation

Context:
- It can (typically) be applied to income generated from investments, such as dividends, interest income, and capital gains from the sale of assets.
- It can (often) include estate taxes, property taxes on real estate, and taxes on financial transactions.
- It can be considered less distortive to economic decisions than labor taxation, as it is levied on income generated from capital rather than labor.
- It can include wealth taxes, which are assessed on the total value of personal assets.
- It can be a tool for reducing income inequality by taxing individuals more heavily based on their wealth and investment income.
- It can be subject to debates regarding its impact on investment, economic growth, and wealth accumulation.
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Example(s):
- The Capital Gains Tax in the United States, which taxes the profit made on the sale of assets.
- The Estate Tax in the United States, which taxes the transfer of the estate of a deceased person.
- Property Tax, which is levied annually on real estate property based on its value.
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Counter-Example(s):
- Labor Taxation, which taxes wages, salaries, and other forms of compensation individuals receive for their labor.
- Consumption Tax, such as sales tax or value-added tax (VAT), which taxes the consumption of goods and services.
See: Labor Taxation, Income Taxation, Consumption Tax.

References

(Altman, 2021) ⇒ Sam Altman. (2021). “Moore's Law for Everything.” In: Blogpost. March 16, 2021 Journal.
- NOTES:
  - Capitalism and Economic Inclusivity: The post argues for a version of capitalism that ensures growth and inclusivity, suggesting a shift from taxing labor to taxing capital. The idea is to make capitalism work for everyone by distributing a portion of the wealth generated by AI and technology directly to citizens.
  - The American Equity Fund Proposal: Altman proposes the creation of the American Equity Fund, funded by taxes on company valuation and privately-held land. This fund would annually distribute its proceeds to all citizens, aiming to reduce poverty and increase economic self-determination and participation in societal gains.