Wealth Tax Proportional Suffrage Proposal

In trying to determine what is the best form of taxation, for when suffrage is in proportion to taxes, I am proposing a certain form of wealth tax.

All wealth will be taxed proportionally by some fixed rate as determined by the legislature.

Wealth is the assets owned by a citizen minus their liabilities, effectively their net worth.  This includes physical assets (like houses and cars), financial assets (like cash and securities), and their own body.

The value of these assets and liabilities, besides their body, are determined via GAAP, where the value is the transaction price of the asset or liability.

The value of the citizen’s body will be determined as the 5 year moving average of that citizen’s income minus income derived from physical or financial assets which are already taxed, multiplied by the current average market price to earnings ratio (PE).  If their value is determined as negative, then it will be set to zero.

The current average market price to earnings ratio (PE) will be determined by last fiscal year’s recorded incomes and prices of all equities.

The assets or incomes of equities (corporations and companies) will not be taxed.  Only the equity itself will be taxed.

If the value of an equity is less than that equity’s income multiplied by the current market PE, then it will be revalued at its income multiplied by the current market PE.

Under the premise of suffrage being proportional to taxation, I believe this mode of taxation would be quite fair and hopefully not too bureaucratic, although when it comes to accounting, there is risk there.

I believe the fundamental purpose of government should be the enforcement of property rights.  Taxation is the price of property rights.  The more property you have at stake, the more you should pay.

Accounting is the tool through which we can quantify the value of property, although in its current form, it fails to quantify the value of productive, sovereign human beings.  This is due to the fact that people are not bought and sold, and as such, they do not have a transaction price to reference.  Instead, we must extrapolate the wealth of human beings as a form of self-owned equity, where their value is derived from their income.  The wealth of human beings needs to be taken into account in order to have fair representation across society, especially for those who are productive, but have yet to accrue wealth.

In a lot of ways a wealth tax is superior to an income tax, although a bit more bureaucratic.  An income tax could lead to very large swings in suffrage among citizens year to year.  Also, people may end up having little or no suffrage even when they still have significant property in society.  This would be so for those capitalists who newly invest into society and need some time before earning an income.  Also when there are societal downturns and the income drops for many across the board, people will still represent their wealth.

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