> The issue with a wealth tax is it’s inflationary
If it encourages people to undervalue, or lower the value of something, I don't see how that's inflationary. Could you explain how it would be inflationary?
Because you can’t undervalue things with clear values like stocks. You have to actually sell them. The IRS doesn’t accept shares for taxes, it accepts USD. Selling -> increased money velocity -> inflation.
Lower asset values aren’t deflation because “asset inflation” isn’t inflation. You can’t eat assets and it doesn’t matter if their prices go up because you can buy fractions of them. Asset inflation (the theory that 2010 QE was causing inflation “in the stock market” even though we didn’t see it in goods) is a crank theory from online people who think central banks print money.
If it encourages people to undervalue, or lower the value of something, I don't see how that's inflationary. Could you explain how it would be inflationary?