And rates of tax evasion are high enough to justify further entrenchment and subsidization of banking institutions?
> The country that is the subject of this HN post does not have the death penalty.
Fine, lifetime imprisonment on trumped up charges. Please don't be disingenuous, coercion is coercion whether the loss of liberty is death or imprisonment.
Perceived ates of tax evasion are high enough to justify further actions to make it harder to avoid tax.
They are definitely perceived high enough.
In Europe salary earners are taxed on the income as they receive it through Pay As You Earn and similar and it is difficult to avoid. The public wants it as difficult for all others to find it as difficult.
Whilst FAANG pay very little tax.
Even in the US Warren Buffet says he pays a lower rate of tax than his secretary.
The basic rule is that tax is progressive and rich people should pay a larger percentage than normal workers.
Of course -- taxes should be progressive. But this doesn't address "rich people" evading taxes, it addresses transactions from people from all slices of the socioeconomic spectrum, with a cap that is entirely too low and invasive.
For example: if and when your country goes to pot, and you have a moral obligation to get your family out because we have this perceived notion of borders and sovereignty based on history we didn't agree to, a $3k block on transactions may well block you. We don't have to imagine very hard -- the US withdrawal from Afghanistan is a recent prime example. Social order is delicate.
As a more mundane example, perhaps I purchase an item at auction, art or contents of a storage locker. Reporting burden should be on the records of the facility and subject to occasional audit, not on every single transaction that goes through. That'd be like implementing a carbon toll for every mile that I use a bus, walk with shoes, ride a bike, or use any form of motor vehicle. There are much better ways to do that.
Yet, it still doesn't address the core issue, tax avoidance by the wealthy.
Further, implementing a road tax would require cumbersome monitoring generally (and especially if making it progressive) or, if equally treated, would be horribly regressive.
> The country that is the subject of this HN post does not have the death penalty.
Fine, lifetime imprisonment on trumped up charges. Please don't be disingenuous, coercion is coercion whether the loss of liberty is death or imprisonment.