Why tax the rich on their income? Let's force them to spend their wealth instead.
Taxing the rich cannot solve
our deficit problems, and it will take discretionary spending dollars
out of the hands of those individuals most likely to spend in the first
place. Instead we should compel the wealthiest individuals to increase their discretionary spending, boosting the economy and ultimately creating more GDP for taxation.
Offer
a future year tax credit for excess consumption in the current year.
Or create limited current year deductions for luxury spending. Or tax
credits for large ticket luxury purchases like private jets. Or for
spending invested wealth directly on consumption. Anything to push well
off individuals to spend a little more. You could go so far as basing
this spending requirement on accumulated wealth instead of current year income.
Compulsory
consumption would be similar to taxation and stimulus except the
decision making power remains with the individual (except the decision
to spend at all). Unlike taxation, affected individuals would be free
to choose products and services most beneficial and enjoyable to them.
And since spending would be driven by choice, stimulus would be applied
to a diverse array of sectors all at once.
Rational
wealthy individuals will buy products and services that cater to their
tastes, which limits the stimulus effect to those businesses. But in
turn they will pay employees, invest and create jobs, and buy products
and services from other businesses. Top earners for those companies
would be compelled to spend as well, creating additional spending
throughout more of the economy.
This is the same effect
provided by tax cuts or direct credits to individuals, except the
government does not have to actually pay for it with debt or reduced
spending.
