The wealthy will simply move money amongst themselves, cronyism will run rampant. By disoncentivising savings, in favor of investment,
you'll absolutely destroy upward mobility and moreover push middle and lower income folks into directly or indirectly paying for the investment capital of the wealthy (or politically connected) class, socializing the risk and privatizing the gains.
Even if you make the taxable reserves progressively scaled, the inflation brought about by your ubi scheme will creep brackets higher than legislators can respond. Any attempt to automate bracket movement with measured cpi rates will suffer from cpi fudging
Your proposal is a recipe for social stratification and class warfare hell. It's effectively what we are doing now, except taken to 11.
The wealthy will simply move money amongst themselves, cronyism will run rampant. By disoncentivising savings, in favor of investment, you'll absolutely destroy upward mobility and moreover push middle and lower income folks into directly or indirectly paying for the investment capital of the wealthy (or politically connected) class, socializing the risk and privatizing the gains.
Even if you make the taxable reserves progressively scaled, the inflation brought about by your ubi scheme will creep brackets higher than legislators can respond. Any attempt to automate bracket movement with measured cpi rates will suffer from cpi fudging
Your proposal is a recipe for social stratification and class warfare hell. It's effectively what we are doing now, except taken to 11.