Regressive taxes can be counterbalanced by redistributive policies. Sales taxes are regressive too for example and bring much much more revenue. The issue is sales taxes disincentivize consumption whereas gambling taxes disinventivize gambling.
> Sales taxes are regressive too for example and bring much much more revenue.
That's because "tax the rich" is actually pretty bad tax policy because the rich really don't make a lot more income than the upper-middle to lower classes.
If you look at countries with robust social safety nets, they don't get there by taxing the rich.
They dont get there by making rich untaxed, uncontrolably powerful and above the law either. Taxing the rich is a necessary component, just like the justice system that applies to rich too.
They do on the other hand hold a significant portion of the wealth. Unfortunately wealth tax is complicated, both because actually measuring the wealth for tax purposes can be hard, and the rich can (and will) just move away from any sufficiently effecient tax scheme.
The really bad part is that the middle/upper-middle class is the real cash cow, the top ~75%. These people are incredibly numerous and have good to incredibly good disposable income.
But since they are such a large cohort, you cannot form a policy around increasing the burden on them. And after all, the tech family pulling $450k/yr are still a "working grunts".
So it's all eye's on the top 1%, but a true wealth gap fix would actually come mostly from harvesting the wealth of the top 20-30%.
It's easy to tax certain assets, such as land. LVT is actually the ideal tax in many ways, since a LVT is undodgable. Actually it doesn't matter whose name is on the title.
Sufficiently high LVT will deter speculation, leading to collapse in land price and encouraging efficient usage of land and drastically affecting our political landscape.
That’s not the only reason. Well to an extent it is, because the rich are much better at optimizing taxes, however you can close the “loopholes” and such, then there are wealth taxes.
The problem is that the rich are ultra mobile, just like their capital, so unless you restrict that they’ll just move somewhere else where taxes are low.
So countries basically end up competing with each other by lowering taxes to attract them while destroying their middle classes..
Do they, though? The vig is 10%, very transparently shown in the odds, and paid immediately. It proves very little disincentive. The tax is paid annually and only if you win; for most people, it is 0%. Are we really going to argue that the tax is a serious factor in discouraging the behavior?
Taxing something almost always decreases usage. By how much depends on the rate and the elasticity of demand. Gambling demand is probably very inelastic, much like cigarettes and alcohol. (Your argument supports this too) If the rate is low too I can see your point about not having much effect. But it still has an effect. Excessive sin taxes can be the sign of a nanny state, but otherwise I agree with it. All taxes are bad anyways, some are just less worse.
When you describe a tax that is "paid annually and only if you win", that's plain generic income tax.
That's not the gambling-activity-specific taxes that Stoller's article discusses - typically applied to gambling businesses' revenues, not bet winners specifically.
Huh? Cigarette and alcohol taxes are levied on the vendor in exactly the same way a gambling tax is. Make your own alcohol and drink it yourself, share some with your friends, and you'll never pay an alcohol tax.
Cigarette and liquor taxes are levied on the purchaser, just like gas taxes. Gambling taxes are taxes on the gambling houses/platforms not excise taxes.
