On the economics of Wealth Taxes

Nobel economics laureate Eugene Fama provides a very simple numerical example (see Fama, Eugene F., June 2019, Wealth Taxes, available at https://ssrn.com/abstract=3403782) which demonstrates how a wealth tax of only 2% can (hypothetically) cause stock prices to drop precipitously. Basic finance is useful for many things, including seeing past the fog of politics and into the light of financial reality!

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