Please critique my tax idea to help decrease inequality.

This could be arranged in such as way to stop people hoarding assets

You're describing rent seeking. Capital Gains Tax exists to counter the effects of rent seeking.

The main cause of inequality IMHO is money, or more specifically the monetary system being inflationary. And this is not just a question of inflation reducing the purchasing power of wages but of price distortions in leveraged markets.

The Chicago plan is an old, mostly forgotten, set of banking reforms that claims to address these problems. Its a good place to start if you want to learn more.

Tax essentially should not exist on wages. But because a nations workforce is used as collateral on government debt and that government debt is (or maybe was) considered one of the safest forms of financial asset (because people have no choice in paying it), government debt forms the base asset used by banks on top of which they create their own assets when people choose to go into debt.

Its a very screwed up system that can only be truly understood by looking the very long history of it.

Debt: The First 5,000 Years covers why it has ended up like it has.

Economics is made up of competing schools of thought. Modern Monetary Theory is the only school that bases its analysis on the above history and the scientific method. The others are all essentially metaphysics or worse.

Understanding the Modern Monetary System covers the details of how the system works today. But beware that there are many changes happening so some aspects might be out of date.

A simple explanation of how money moves around the banking system is a much shorter and simpler version of the above.

Why is the UK banking system so big and is that a problem is the Bank of England on the subject.

/r/ukpolitics Thread