Typically, increased taxation takes the form of greater income, property, and consumption taxes because these forms of taxation are the most effective at raising revenues. Wealth and inheritance taxes are sometimes also increased,9 though these typically raise very little money because so much wealth is illiquid that it is practically difficult to collect on, and forcing the taxpayer to sell liquid assets to make their tax payments undermines capital formation. Regardless, transfers rarely occur in amounts that contribute meaningfully to the deleveraging (unless there are “revolutions” and
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