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Did I say mandatory? I meant optional! You're "free" to die in a cardboard box under a freeway as a market capitalist scarecrow warning to the other ants so they keep showing up to make us more!
The top 10% own 67% of the wealth in the U.S.
The tax rate during the New Deal (which corresponded with the largest jump in GDP and middle class growth) on people earning $200k and over (now would be like earning $2.5 million/year) was 95%.
During the 50's through the early 80's, that tax on the wealthiest was at 70%.
Now it's at 37%, less than half of what it was during the best years of growth our country ever experienced.
This Unrealized gains tax would only impact people worth more than $100 million who do not pay at least a 25% tax rate on their income.
Additionally, you'd only pay taxes on unrealized capital gains if at least 80% of your wealth is in tradeable assets (i.e., not shares of private startups or real estate). One caveat is that there would be a deferred tax of up to 10% on unrealized capital gains upon exit.
In short, it would not apply to most startup founders or investors, but would impact top hedge fund managers.
They can afford it. TAX THEM.
I don't agree with unrealized gains taxes in general, but the instant they are used as collateral, or if value in any way is extracted from them (even loan value), they become realized gains, and should be taxed.
I don’t agree with unrealized gains taxes in general, but the instant they are used as collateral, or if value in any way is extracted from them (even loan value), they become realized gains, and should be taxed.
What you're suggesting would also mean you're advocating for middle class homeowners to be taxed on a full value of a Home Equity Line of Credit (HELOC) even if they haven't spent a dime of it yet. Was that your intention?
Homeowners are excluded from capital gains tax for the first 250k for individual filers.
I believe you're referring to rules on sale of a home where there is a capital gain, meaning you bought the house for $100k and sell it for $350k, no cap gains taxes. We're in uncharted waters with what @[email protected] is proposing. That user (possibly) suggesting it for HELOCs too.
So with a 401k loan, which is kind of this, you are limited to borrowing against it by like only up to 50% of its face value due to factors such as market volatility. And then all payments made to that loan are with alreaey taxed income, so you aren't securing money in any way that dodges taxation.
Also using shareholdings is no different from using a house or property as collateral... property equity has unrealized value until it is sold too. One might argue you pay property taxes on that equity, but ideally, the company behind the stocks you own pays property taxes for its ownings annually, so that's still happening. So the real problem is large companies dodging taxes due to exploiting broken tax code loopholes.
Also, i think income tax is double taxation. Businesses are the key market players in an economy so why not orient all taxation around them? Do away with personal income tax and property tax. Keep/increase sales tax, luxury tax, sin tax. And clamp the largest salary in a company to be allowed no more than 20x the average salary in the company to address wage disparities. If the CEO deserves a 1 mil bonus, the average employee deserves at least a 50k bonus. Also, no worker's rate can be paid less than 1/20th the salary than the average employee. The more spread out the dollars are, the better it is for the economy.
Yea this is a bad idea. All this will do is force small investors-think people that have made maybe a million dollars in their life and are retiring at 70-to pay taxes they don’t have cash to pay.
The Harris proposal kicks in at 100 million dollars lol if you have over 100 million dollars in unrealized gains you are not a small investor and should pay your taxes.
Like how the Revenue Act of 1913 only applied the new "income tax" to $3000/year ($90k/year in today's dollars) and up.
? Sure yeah ?
And just like how federal income tax rates have been and are adjusted constantly over the years due to inflation since 1913, it's safe to assume these tax brackets will be updated also
most people don't understand how tax brackets work
Yeah and most people like to pretend someday they could have that much money too, not realizing it's strictly generational and they'd already have it.
If the rich and the poor are fighting, no one can protect the Republic. The founding fathers intended no income tax and for corporations to pay the entire bill. It's time that became a reality.