Inequality and Risk

Other spins …

Instead of “confiscate”, use “cost of doing business”. Set the baseline (minimum standards for available education, housing, health, retirement), and tax only above the baseline. Taxes are (or should be) simply a “fair share” of the costs of running the country, instead of a seemingly arbitrary amount.

Better yet, make the tax rate float based on the expenditures of the government. Bet that would knock down excess spending in a hurry - when increased spending showed up in next year’s tax bill. The decoupling between tax rates and spending allows politicians to “pass the buck” to later generations. Remove the decoupling, and you can bet politicians are going to be very careful about spending (and annoying voters).

As to risk and reward, if you lessen the risk, you don’t need as big a reward, or as big a chance of success. When Bill Gates started Microsoft he was running at zero risk. When Gates started Microsoft his biggest worry was that he might have to borrow money from his father (who had plenty). That’s not much of a risk, and you have to count Microsoft as a success story.