Taxing Wealth

Since Elizabeth Warren proposed a wealth tax, it has become the topic du joir in tax policy circles. Let me propose a few options. 

An Asset VAT of 22.5% in dividends, rental payments and capital gains, with no tax payment recognition for assets gifted or inherited and no tax on transfers to a qualified ESOP could gain revenue at each sale (even to other retirement accounts).

Raising marginal rates is not a revenue maximizing tool. It is meant to prevent CEO rent seeking. The point is not to hit Laffer but to get to the side where income is lost.

A wealth tax is an ex post facto income tax. A better alternative would be a prepaid one. Either should go to debt repayment or items normally funded by debt: war and net interest.

Transfers to families and workers should be funded by consumption taxes, which would replace payroll taxes and income taxes paid on salaries, with an additional surtax or a second and third tier rate ssubtraction VAT. These taxes are collected by employers now, but with filers duplicating the paperwork.