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Agreed that's how taxing income currently works. But we're talking about taxing wealth. What you're describing is this: Buy at 1K Sell at 10K Taxed
by mLuby 7y ago
Agreed that's how taxing income currently works. But we're talking about taxing wealth. What you're describing is this:
Buy at 1K
Sell at 10K
Taxed on 10K
Buy at 10K
Sell at 1K
I understand your concern about volatile assets, but aren't all assets (even currency and gold) risky over a long enough time period?
- kbutler 7y agoThe point is: Buy at 1K Hold while value goes up to 10K Tax on wealth at 10K (Next year) Tax on wealth at 20K ... (N years later) Sell at 1K With a liquid asset like stocks, it is at least possible to pay the tax by selling part of the stock, and you could get a credit in future years for capital losses. But what if the wealth is your elderly mother's home? Or the family farm or small business? It's really hard to sell part of those things to pay a "wealth tax" every year.