Endowment Taxation

[iamrefreshed]

I’ve been having an interesting discussion on another thread about taxation.

One proposed method of taxation is called Endowment Taxation. I am curious if many know of it and if so, support it.

Here is a brief description.

Under endowment taxation, individuals are taxed according to their native ability to command resources, rather than according to any actual index of goods or expenditures, such as income, consumption or wealth, that might otherwise be thought relevant to imposing tax burdens.

So, someone holding a doctorate in medicine would be taxed on his potential earnings. He would be responsible to pay this tax even if he chose not to practice medicine and instead took a job paying considerably less money.

Thoughts?

 

[mapleoak]

I’ve been having an interesting discussion on another thread about taxation.

One proposed method of taxation is called Endowment Taxation. I am curious if many know of it and if so, support it.

Here is a brief description.

Under endowment taxation, individuals are taxed according to their native ability to command resources, rather than according to any actual index of goods or expenditures, such as income, consumption or wealth, that might otherwise be thought relevant to imposing tax burdens.

So, someone holding a doctorate in medicine would be taxed on his potential earnings. He would be responsible to pay this tax even if he chose not to practice medicine and instead took a job paying considerably less money.

Thoughts?

I will think on this for a while. Of course if someone held a particular qualification, he would have an out by merely having to prove his incompetency.

 

[iamrefreshed]

I will think on this for a while. Of course if someone held a particular qualification, he would have an out by merely having to prove his incompetency.

In the case of our hypothetical doctor, I fear to think of the incompetency required.

 

[puzzleannie]

oh thank goodness I thought us fuller figured girls were getting hit with an excise tax. i think future earning potential only comes into play when assessing mega-awards in liability lawsuits.

 

[Joe_Kelley]

I presume that would free politicians from taxes entirely.

 

[Corki]

Another anti- family idea. As a professional with a Master Degree who choses to be a SAHM and use my skills in the volunteer arena, this sounds like I would be taxed and forced to pay taxes AND day care ---- NOT!