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Thousands protest in Ireland against bank bailouts (DW)
It seems that taxing the rich is the new norm, or the idea of it anyways. Per the German news source, the German leftist party is considering a 100% tax on anyone making over €500,000.
If anyone has read any economics course, or has common sense, would see why this would be a terrible mandate. Also, what is not clear is that if it only applies to people? And how much is corporate tax is going to be affected by the mandate. However, a 100% taxation on income after a certain threshold will discourage hardworking and geniune people from working and creating social value through their businesses. There is limited data on how many persons make such money. It is to be noted that it may work some very smart people from joining specific area of work. For example, if the same mandate is applied to income from financial institutions (or capped to per say a million euros), it will actually drive smart people to other industries (small businesses, technology), which may create increased value in socity as compared to banks.
Excerpt from the aricle:
The party paper said the total tax on those taking home over €40,000 per month would be used to fund social welfare and investing in the country’s future.
“Explosive inequality is threatening democracy,” said co-leader Bernd Riexinger. “I call capping income at half a million euros a democracy tax.”
The upcoming campaign for Germany’s election in September was going to be one focused on wealth redistribution, said Riexinger.
You can read the full article here.