4 ms·

This is a twist on a somewhat similar system used in the Netherlands, I think. Over there, you pay 4% (or something like that; some amount of gains are 'assumed

by rmk 5y ago

This is a twist on a somewhat similar system used in the Netherlands, I think. Over there, you pay 4% (or something like that; some amount of gains are 'assumed') on the assets you are holding, such as stock, every year. https://en.wikipedia.org/wiki/Taxation_in_the_Netherlands#Box_3:_savings_and_investment https://en.wikipedia.org/wiki/Taxation_in_the_Netherlands#Bo... Here, the proposal is that if the asset is held and grows in value, then it will be taxed without it being sold (i.e., the unrealized gains will be taxed). I very much doubt if this will pass without legal challenges, and it may not stand up to close scrutiny in court.

kevinventullo 5y ago
That would be a wealth tax, which seems to be verboten in the US.
- rmk 5y ago
  No, it's not a wealth tax. Wealth Tax is usually understood to be the tax imposed on wealth transfer, for example when a wealthy person dies and the estate passes on to his heirs. Wealth Tax is not verboten in the US, it's actually very much a fact (it's known as Estate Tax), and wealthy people spend considerable time and money dealing with it. The current wealth tax exemption limit is $11.7 Million (i.e., you don't pay a penny of estate tax if your estate is valued at this number or below). Estates larger than $11.7 million are subject to Estate Tax. And large gifts made during the lifetime of the person whose estate is taxed also bite into the exemption amount of $11.7 million.
  - kevinventullo 5y ago
    Wealth Tax is usually understood to be the tax imposed on wealth transfer, for example when a wealthy person dies and the estate passes on to his heirs Agree to disagree. What you’ve described is an Estate Tax or Gift Tax, which are not the same thing as a Wealth Tax. A Wealth Tax is usually defined as a tax on the net wealth a person holds; transfers are not necessary. This is how both Wikipedia and Investopedia define it.
    - rmk 5y ago
      In the USA, Estate Tax is synonymous with Wealth Tax, and it is the commonly-understood usage. There are very few countries that tax (financial) assets where no gain is realized (i.e., they are not sold or exchanged). The Netherlands (and a handful of other European countries) have the system of taxing unrealized gains, but this usage of 'Wealth Tax' is pretty much obsolete all over the world.
      - kevinventullo 5y ago
        In the USA, Estate Tax is synonymous with Wealth Tax, and it is the commonly-understood usage. That is simply not true. - Estate Taxes are about taxing the transfer of assets upon someone’s death. - Wealth taxes are about taxing the overall net wealth someone has at a given point in time. Gains have little to do with it; there could be ten billion dollars in cash under your mattress and you would still be subject to a hypothetical wealth tax. In case you are not convinced, here are an overwhelming number of links using this definition: https://en.m.wikipedia.org/wiki/Wealth_tax https://en.m.wikipedia.org/wiki/Wealth_tax https://www.investopedia.com/terms/w/wealth-tax.asp https://www.investopedia.com/terms/w/wealth-tax.asp https://www.pgpf.org/blog/2021/03/what-is-a-wealth-tax-and-should-the-united-states-have-one https://www.pgpf.org/blog/2021/03/what-is-a-wealth-tax-and-s... https://taxfoundation.org/wealth-tax/ https://taxfoundation.org/wealth-tax/ https://berniesanders.com/issues/tax-extreme-wealth/ https://berniesanders.com/issues/tax-extreme-wealth/

by rmk 5y ago

kevinventullo 5y ago

That would be a wealth tax, which seems to be verboten in the US.

rmk 5y ago
No, it's not a wealth tax. Wealth Tax is usually understood to be the tax imposed on wealth transfer, for example when a wealthy person dies and the estate passes on to his heirs. Wealth Tax is not verboten in the US, it's actually very much a fact (it's known as Estate Tax), and wealthy people spend considerable time and money dealing with it. The current wealth tax exemption limit is $11.7 Million (i.e., you don't pay a penny of estate tax if your estate is valued at this number or below). Estates larger than $11.7 million are subject to Estate Tax. And large gifts made during the lifetime of the person whose estate is taxed also bite into the exemption amount of $11.7 million.
- kevinventullo 5y ago
  Wealth Tax is usually understood to be the tax imposed on wealth transfer, for example when a wealthy person dies and the estate passes on to his heirs Agree to disagree. What you’ve described is an Estate Tax or Gift Tax, which are not the same thing as a Wealth Tax. A Wealth Tax is usually defined as a tax on the net wealth a person holds; transfers are not necessary. This is how both Wikipedia and Investopedia define it.
  - rmk 5y ago
    In the USA, Estate Tax is synonymous with Wealth Tax, and it is the commonly-understood usage. There are very few countries that tax (financial) assets where no gain is realized (i.e., they are not sold or exchanged). The Netherlands (and a handful of other European countries) have the system of taxing unrealized gains, but this usage of 'Wealth Tax' is pretty much obsolete all over the world.
    - kevinventullo 5y ago
      In the USA, Estate Tax is synonymous with Wealth Tax, and it is the commonly-understood usage. That is simply not true. - Estate Taxes are about taxing the transfer of assets upon someone’s death. - Wealth taxes are about taxing the overall net wealth someone has at a given point in time. Gains have little to do with it; there could be ten billion dollars in cash under your mattress and you would still be subject to a hypothetical wealth tax. In case you are not convinced, here are an overwhelming number of links using this definition: https://en.m.wikipedia.org/wiki/Wealth_tax https://en.m.wikipedia.org/wiki/Wealth_tax https://www.investopedia.com/terms/w/wealth-tax.asp https://www.investopedia.com/terms/w/wealth-tax.asp https://www.pgpf.org/blog/2021/03/what-is-a-wealth-tax-and-should-the-united-states-have-one https://www.pgpf.org/blog/2021/03/what-is-a-wealth-tax-and-s... https://taxfoundation.org/wealth-tax/ https://taxfoundation.org/wealth-tax/ https://berniesanders.com/issues/tax-extreme-wealth/ https://berniesanders.com/issues/tax-extreme-wealth/