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> But let's not pretend that there's no precedent for taxing unrealized capital gains. Are you mistaking property taxes for something else ? Property taxes are
by KorematsuFredt 5y ago
> But let's not pretend that there's no precedent for taxing unrealized capital gains.
Are you mistaking property taxes for something else ? Property taxes are imposed on property value and have nothing to do with the gain or loss in the value of the property.
But if you want to apply the same parallel to stocks then I think we should call it 'wealth tax' rather than anything to do with income and do not tax the gains (realized or otherwise) but the total value. So if you buy a stock worth $100 and it is $50 next day you still pay $0.5 as taxes even though you might have lost money. I do not think that is a good idea but that would be somewhat consistent with property taxes.
- dionidium 5y ago> Property taxes are imposed on property value and have nothing to do with the gain or loss in the value of the property. I don’t understand what you’re trying to say here. If the value of your property goes up you pay more in taxes. Of course property taxes have something to do with the gain or loss in the value of the property. The relationship is in fact direct and unambiguous. (I think people are just getting caught up on the article's use of the word, "income," which was indeed well-poisoning from the start.)
- KorematsuFredt 5y ago> Of course property taxes have something to do with the gain or loss in the value of the property. Which is not same as taxing the unrealized gain. Property tax is a wealth tax and not any kind of income (or gain) tax.
- dionidium 5y agoYes, as I said in another comment, I think people are just getting caught up on the article's use of the word, "income," which was indeed well-poisoning from the start. Obviously it’s not income in the ordinary sense and it’s not taxed like income.