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Propublica and OP talk about taxing gains (as though the gains were income), while this wiki link refers to taxes on wealth. Those aren’t the same thing. The we
by fshbbdssbbgdd 5y ago
Propublica and OP talk about taxing gains (as though the gains were income), while this wiki link refers to taxes on wealth. Those aren’t the same thing. The wealth tax would be a low rate that applies to your entire wealth each year, while the tax on gains would be higher but only apply when the gains occur.
- alex_young 5y agoI’ll grant that these would be two different ways to achieve very similar results, but I don’t read where propublica proposed a direct tax on capital gains rather than a more generalized wealth tax, which very much is a real thing.
- fshbbdssbbgdd 5y agoPropublica calculates a “true tax rate” which uses the unrealized capital gains as the denominator. They don’t make any public policy recommendation in the article, but I think computing the tax rate in this way implies that the unrealized gains should be taxable income. They also mention that Senator Ron Wyden has proposed doing this.
- md_ 5y agoWhy? Calculating the tax rate as “taxes paid” / “net wealth” is just what the effective wealth tax would be if one existed. This is consistent with advocating for a wealth tax, which, as I noted elsewhere, does in fact exist in other OECD countries than the US.
- fshbbdssbbgdd 5y agoWealth taxes use wealth as the denominator. Propublica uses change in wealth as the denominator.
- md_ 5y agoTrue. I find the denominator chosen to be weird.