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> Unfortunately instead, the author spends much more time on point 1, conflating wealth with income, and avoiding the obvious argument that capital gains are ev
by leroman 5y ago
> Unfortunately instead, the author spends much more time on point 1, conflating wealth with income, and avoiding the obvious argument that capital gains are eventually taxed - the rich are not escaping that.
Isn't it the point that wealth creates more wealth? and the more you have the more you can make? thus not paying taxes leaves you with more to play with?
- sudhirj 5y agoNo, the more wealth doesn't mean the "more you can make". A majority of people own homes, for instance. And these homes usually go up in value. But no tax authority comes to your house and starts taxing you on how much the value of your home has increased. You pay taxes on the profits when you sell your home, not when you sit in it. Same thing goes for shares in companies. In both cases, the home and shares, owning something that has increased in value doesn't mean you have a stack of cash in your hand. You might once you sell your assets, at which point you pay taxes in both cases.
- thechao 5y agoWhat!? I absolutely pay a rolling cost in the increase in value in my home — to the tune of 3.1% of its expected value, every year.
- sudhirj 5y agoThat's a property tax, not quite the same thing. You'd still pay it even if the home didn't increase in value, and you'd still pay it even if the home decreased in value, right? Isn't that more a local infrastructure bill?
- brewdad 5y agoThe property tax is based on the value of the home. If your home loses value, your property tax goes down, all other things being equal. Increasing home values increase your property tax bill.
- magicalhippo 5y agoHere the property tax is a function of the estimated marked value of the property. Especially fun for old people living off their pension in their family home with large, attractive gardens in areas which were way outside town but now, some 50-60 years later, has become highly attractive... https://www.oslo.kommune.no/skatt-og-naring/skatt-og-avgift/eiendomsskatt/hvor-mye-skal-du-betale-i-eiendomsskatt/ https://www.oslo.kommune.no/skatt-og-naring/skatt-og-avgift/...
- edgi 5y agoReal estate tax is literally a tax you pay to the authority that “comes to your house and starts taxing you on how much the value of your home has increased”.
- hnburnsy 5y agoJust to be precise, aren't the taxes approved by the taxing authority allocated proportionally based on the total value of the real estate in the jurisdiction? In other words if all real estate values go up, your taxes should remaing constant? Maybe in different parts of the US this varies, but should the taxing authorities get more money because the real estate market is hot and do they take less when real estate values are down?
- greedo 5y agoAppraisals can go down (mine did this year), but there's no proportional allocation by the county assessor.
- leroman 5y agoThis doesn't make sense to me, people take loans to make more money via starting a business or other ventures, loans cost a lot of money, so just having capital to loan out etc makes you money.. Money creates more money so the more you have the more you can make in a proportional way. No?