As in the 1920s this will be a recession triggered by galloping inequality. How to treat it:

Index tax rates to the gini coefficient:



I sent this index tax rates to the Gini Coefficient policy idea to Moralmoney/Gillian Tett, who expressed interest in writing about it:

"I read your moralmoney intro right after attending the TBLI impact investing conference in Zurich. One idea that resonated was this policy idea to use the Gini Coefficient to reduce inequality to a sustainable level within states and companies:



Reverse the trend toward increased inequality by embedding the policy outcome in the tax system: index the tax rates of those who benefit from startup unicorns/IPOs and central bank policy driven asset bubbles to the gini coefficient. Lower income taxes on the top 2-3% income tranches if the gini coefficient drops, raise them if the gini coefficient rises. Embed the indexation in tax accounting software packages like Turbo Tax so indexation by gini coefficient becomes a fait accompli that doesn't create an annual political argument. Frame it as a purely technical change that's a two way street. Lower inequality will lower corporate and high net worth individual tax rates. This idea is the reverse of the usual fiscal policy idea: it's outcome-driven and easy to implement. Nobody across the political spectrum says openly he's in favor of more inequality. This policy idea would force its opponents into looking like they favor increased inequality."



I'd appreciate hearing your thoughts on this idea. Feel free to use your megaphone to spread it around.

I'm an angel investor in eight startups and the founder of another. I have never, ever considered tax rates before making an investment.



Best wishes from sunny Russian money laundering Jurmala, Latvia, where we'll benefit from climate change until our beachfront parking lot is under water.



Kind regards,



Lester Golden

www.fundlink.info