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Jonathan Schofield (urlyman@mastodon.social)'s status on Saturday, 22-Jun-2024 19:00:26 JST Jonathan Schofield

The point of a wealth tax may not be to raise revenue. I confess I’m confused about whether tax pays for anything at all.
Let’s say it doesn’t, because:
- https://mastodon.social/@urlyman/112551829309979263
- https://mastodon.social/@urlyman/111918887148493591
But, taxing wealth is still *vital*.
More equal societies are happier and healthier. And also the *only* route to low carbon economies (other than collapse).
The point of a wealth tax is to make it socially unacceptable to be obscenely rich
In conversation about 5 months ago from mastodon.social permalink
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  Jonathan Schofield (@urlyman@mastodon.social)
  
  from Jonathan Schofield
  
  …Is it perhaps the case that if we clawed back the crazy transfer of wealth to the already wealthy that there has been, in the form of taxation, that that **wouldn’t pay for anything**. But what it would do is: 1. Contract the money supply thus creating the breathing space for productive investment in things that are actually good (education, health, housing) 2. Reduce inequality which is then a dampener on resentment 3. Lower inflation
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  Jonathan Schofield (@urlyman@mastodon.social)
  
  from Jonathan Schofield
  
  Tax ‘A’ is an economic actor with a tax obligation. (Without tax there is no need for the currency.) 1. A instructs its commercial bank to settle their tax obligation 2. A’s commercial bank: - debits A’s bank account by £X of *commercial bank money* - debits £X of *base money* from its own Central Bank Reserve Account (CBRA) 3. Central Bank instructs the goverment’s tax office to settle A’s tax liability Outcome: the money supply has *decreased* by £X

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