More on "an idea whose time has come"

My first post (4/23) on Thomas Piketty's book and theory about economic growth and inequaliy was about Piketty's analysis of the problem, based on extensive data analysis.

His book also offers a remedy, and this is the more controversial part.   What he calls for is a "global tax on wealth."   Those four words, as Walt Whitman would say, "contain multitudes."

First, it would tax a person's net worth (his assets minus liabilities) rather than income.   Now, the very wealthy get most of their income in ways that are either taxed at lower rates (capital gains) or have various tax exemptions and loopholes.   This is why very wealthy people often wind up paying very little taxes.   The tax code is designed to favor people with lots of money and very smart tax lawyers who know how to take advantages of the special treatment that their influence and money have been able to get passed through congress.

Second, it is global.   If only one country decided to tax wealth (as some do now), it would encourage corporations and wealthy people to simply transfer ownership to tax havens in other countries.

So that is the difficulty.   If a tax on wealth had any chance of getting through the U. S. Congress, would it stand any chance of getting the cooperation of all the other countries to make it a universal, global agreement?

Not too likely, say most economists and political observers.  But Piketty says it could be done.  All you have to do is get enough people to want to do it.    Structurally it is not impossible;  it's all in the motivation.   And Piketty is stirring lots of interest and even excitement.

Still, as a practical thing, it's not likely to happen anytime soon, short of some global catastrophe.   And, from my point of view, that's too bad.

Ralph