Higher CGTs, corporate taxes, & taxes on wealthy, will not have negative effect on the economy & investment (as opposed to *investors*), until we move from an environment of capital abundance to one of capital scarcity (below).

https://lt3000.blogspot.com/2020/01/demystifying-post-gfc-economics-problem.html

https://lt3000.blogspot.com/2017/02/do-corporate-tax-cuts-help-or-harm.html

The long-form arguments for why are in the blog entries above. A lot of people will argue such taxes will have such negative effects, but those arguments are either self-interested, or are due to erroneously applying capital-scarcity economics to environments of capital excess.

However, that is not to say *investors* won't be harmed. It is perfectly possible to significantly harm investors and significantly lower asset prices, but for that to not only not harm the economy, but even benefit it. That will only be true up to a point though.

Redistributing income from rich to poor can help the economy when you have excess capital, as the poor have a higher marginal propensity to spend (or if deficits increase, the government spends the money for them), and it won't harm investment until there is a scarcity of capital

However, if it is taken far enough, and you see inflation & high enough taxes, capital will be eroded (through large real losses by investors) to the point where capital ceases to be in excess and you move into a shortage. Interest rates will rise significantly at this point.

At this point high taxes will become very damaging to the economy, and "capacity scarcity economics" will kick back in, which includes concepts like "crowding out" (government deficits monopolizing savings which reduces private sector investment for lack of funding/high CoC).

The developed world currently has too much capital. That's why the cost of capital is so low; rates are so low; and multiples are so high. We are drowning in capital. Until that's no longer the case, confiscatory taxes won't harm the economy & investment - only investors.

PS should read *capital scarcity economics* in second to last tweet.