Thursday, July 11, 2024

Does a Wealth Tax Ever Work?

 There's some hype in Germany....at least sixty-percent of Germans favor the idea, and I expect the Greens and SPD to suggest it for their fall 2025 election strategy.

Four 1st tier offer such a program presently...Columbia, Switzerland, Norway and Spain.

Sweden did it for a couple of years....chasing out a couple of companies and a number of the ultra-rich.  After a while....they realized they lost more than they gained.

France had it for almost a decade...dumping it in 2018.

If the Germans progressed toward it?  I would suggest within four years....a fair amount of production would exit...probably going to Spain, Czech, or Poland.

Adding to it....a fair number of the German wealthy-class would re-anchor themselves and their assets....in safe countries without the tax affecting them. 

But that doesn't mean it's a no-go position.  I think the two parties are desperate for votes, and they need to attach themselves to it....to gain some advantage over the CDU-CSU party position.

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