Buffet has to sell stock to pay the tax. That stock is bought by someone, probably mostly an asset manager. That reduces the amount of money chasing stocks on a per-share basis, which reduces share prices a bit. Meanwhile, millions of retirees are selling stock to fund their retirements, now at slightly lower prices.
Buffet has to sell stock to pay the tax. That stock is bought by someone, probably mostly an asset manager. That reduces the amount of money chasing stocks on a per-share basis, which reduces share prices a bit. Meanwhile, millions of retirees are selling stock to fund their retirements, now at slightly lower prices.
So, the retirees consume less.
It's so many of them and there's so much stock price volatility that no-one notices. But that's where it lands.
Buffet, who is directly taxed, now has less ability to invest (or consume). Indirectly, it impacts the income of every retiree who saved assets for retirement, but by very little. And their money is given to the poor. Because Buffet's net worth is so small compared to the government's spending over any length of time, the poor also don't notice the change.
Buffet has to sell stock to pay the tax. That stock is bought by someone, probably mostly an asset manager. That reduces the amount of money chasing stocks on a per-share basis, which reduces share prices a bit. Meanwhile, millions of retirees are selling stock to fund their retirements, now at slightly lower prices.
So, the retirees consume less.
It's so many of them and there's so much stock price volatility that no-one notices. But that's where it lands.
Buffet, who is directly taxed, now has less ability to invest (or consume). Indirectly, it impacts the income of every retiree who saved assets for retirement, but by very little. And their money is given to the poor. Because Buffet's net worth is so small compared to the government's spending over any length of time, the poor also don't notice the change.