Solidarity Tax Kills Solidarity

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Not so long ago, a fiscal initiative referring to the taxation by 1% of the great fortunes reappeard in the public eye. This proposal is worth exploring at least in order to show solidarity with the idea of this debate. Not to mention the fact that the tax itself is one which should encourage “solidarity”, as we are told. It refers, of course, to the solidarity imposed by the crisis manifestation. Paradoxically, imposing solidarity actually kills solidarity. Even if governors aim to develop the solidarity spirit, they are going to kill it. Subsequently, those who are taxed could cease expressing desire to help their peers (if such a desire exists). Under the conditions of the solidarity tax, they are going to do this anyway. Another problem that may arise is the fact that the entrepreneurial spirit will also suffer, in addition to the solidarity one. Wealthy people will pay the tax giving up on financing some of the businesses they already run, or they will transfer their businesses in other countries, with more permissive fiscality. Society can prosper only by encouraging the increase of legitimately obtained wealth. Governments’ redistributive policies create inequity in the allocation of incomes and contribute to the “swelling” of political clients’ wealth. Taxing great fortunes discourages genuine initiatives of gaining exclusively from the private sector, but encourages those based on state relations. The real solidarity should be aimed at cutting the incentives that are so attractive for the political clients: the financing from public money.

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