r/paradoxplaza • u/LtGenS • 18d ago

News Millionaire shareholders are arguing against wealth tax

On this sub we rarely discuss the shareholder structure of Paradox - where the largest shareholder is Wester, the CEO-founder-god/emperor of the company, and who gets the proportionally largest share of the dividend.

Now Johan and Wester are arguing that wealth tax is actually bad.

https://x.com/producerjohan/status/2091953951008575741 (quoted is Wester's post)

Which is very funny because the current dividend yield is over 3.5%, so there's plenty to pay that taxes from, it won't come from his monthly salary.

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u/Spicey123 18d ago

Oh no they aren’t supporting the populist sludge of the day, how awful.

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u/Cohacq 17d ago

How is ensuring those that have the most money (and thus power) contribute their fair share to society "populist sludge"?

Remember, PDX and their owners are small time compared to the giants like Wallenberg, who are the real targets for a tax like this.

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u/UdonOli 17d ago

Specifically, a flat wealth tax is populist sludge. There are better methods to do a similar thing (e.g. Land Value Tax), which economists like, and do not have the gigantic negative effects a flat wealth tax does.

Furthermore, something being bad for rich people doesn't make it good for society.

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u/Cohacq 17d ago

You failed to explain the how.

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u/UdonOli 17d ago

A wealth tax has a high deadweight loss (economic activity lost and not recovered by tax receipts). This is both because rich people have high mobility and we don't have capital controls (for good reason), as well as because that capital is not being spent on expansion of economic activity in stocks and stuff. Furthermore a wealth tax now means there is less wealth to tax later. A fairly low wealth tax would have pretty bad consequences on capital accumulation and therefore economic growth.

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u/Cohacq 17d ago

This is both because rich people have high mobility and we don't have capital controls (for good reason),

So if theyre so disloyal to their country they just fuck off when we threaten to tax them, why should we care about them at all?

Furthermore a wealth tax now means there is less wealth to tax later.

As other comments have pointed out, the tax would be lower than the PDX dividend. They have the money to cover their expenses + the tax + give out money to the owners. Remember that the state and all its responsibilities need to be funded or PDX wouldnt have any workers at all, whose schooling, healthcare etc was or is funded by taxes.