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juancntoday at 4:58 PM1 replyview on HN

There's a secondary side effect of wealth taxes: they redirect investments (I'm Argentinian and we have wealth taxes).

Investments shift to things whose tax value updates slowly, for example property which typically adjusted more slowly than other financial assets. This tends to rise property prices and concentrate ownership.

It causes other distortions in allocation depending on the tax details, but wealthy people tend to adjust more aggressively to changing conditions.


Replies

warkdarriortoday at 7:03 PM

> This tends to rise property prices and concentrate ownership.

We are already there in US. Real estate is already controlled by companies, and rental costs are through the roof.