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Money that just sits in your bank account does not cause inflation.

Neither wealth creation. Why should government create money to somebodys bank account? That is not the function of money.  Why should rentier accumulate this capital and not the wealth creator?

If you tax the rentier, you make sure that the rent is paid to the tax man rather than the private rentier.

You don't see the difference?

But that does not make the rent go away - the user still has to pay it.

You keep saying this, but i have never said that rents go away. Labour taxes go away.

What it does do is alter the term structure of the rent - from being paid up front in the asset price to being paid over time in taxes.

Less unproductive debt and interest.

Which is helpful in preventing bubbles, but not make the rent any lower in and of itself.

Bubbles and labour taxes (=wealth transfer from the poor to the rich).

But it does not, unless you allow scammy stuff like negative amortisation loans.

It does, if interest is not a return to productive capital.

by kjr63 on Mon Jun 13th, 2011 at 09:19:12 AM EST
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