One more thing about Paul Krugman’s liquidate-the-kulaks column today. Regarding Senator Warren’s asset-confiscation plan, he writes:
Would such a plan be feasible? Wouldn’t the rich just find ways around it? Saez and Zucman argue, based on evidence from Denmark and Sweden, both of which used to have significant wealth taxes, that it wouldn’t lead to large-scale evasion if the tax applied to all assets and was adequately enforced.
Denmark repealed its wealth tax in 1996. Sweden repealed its wealth tax more than a decade ago. Iceland repealed its wealth tax in 2007 and instituted some other very business-friendly tax reforms.
I wonder why.