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>The brothers were quiet for a long moment. A wealth tax, in fact, could disrupt their scheme: young people, valued by shares in their own futures, would be tax
by daenz 4y ago
>The brothers were quiet for a long moment. A wealth tax, in fact, could disrupt their scheme: young people, valued by shares in their own futures, would be taxed as wealthy before they’d ever been rich.
That's pretty funny. You can kill your success in the cradle by being taxed to death on your future potential.
- bpodgursky 4y agoI mean, this is why people hate proposals to tax unrealized gains.
- Retric 4y agoPeople hate taxes. Which they prefer is largely just a question of which ones shift the tax burden to other people.
- josephcsible 4y ago> Which they prefer is largely just a question of which ones shift the tax burden to other people. What about Georgists? Their main argument for it is that there's zero deadweight loss, not that it's more "fair" because certain people do and don't have to pay it.
- djbebs 4y agoTheres plenty of issues with georgist taxes...
- bpodgursky 4y agoThe proposal to tax unrealized gains was criticized by many people who support higher taxes on income and capital gains. It was really only supported by people who were willing or able to methodically think through the consequences.
- pjscott 4y agoEveryone I know who hates taxes on unrealized capital gains will happily tell you which other taxes they would prefer to raise the same amount of revenue from them. There are better and worse kinds of taxation!
- Retric 4y agoIt causes issues with illiquid assets etc, but over a long enough timeframe taxing unrealized gains is equivalent to a vastly larger capital gains tax. That says little about taxing all capital gains and a lot more about just how huge a tax break this is.
- pishpash 4y agoThen don't tax unrealized gains but also don't have loopholes that allow the untaxed use of unrealized gains (collateralized loans) or that eliminate unrealized gains like the stepped up basis.
- bpodgursky 4y agoSure
- jdasdf 4y agoCan you explain to me how borrowing money is actually income?
- yardstick 4y agoIf the borrower defaults, and thus cedes the collateral to the lender, does the borrower also get to default on their tax obligations now that the shares aren’t theirs? Or is that added to their debt mountain? There’s lots of schemes around borrowing but never paying it back, deferring payment until death, paying it back such a way the money is just returned to you via some other entity, etc.
- jdasdf 4y ago>If the borrower defaults, and thus cedes the collateral to the lender, does the borrower also get to default on their tax obligations now that the shares aren’t theirs? Or is that added to their debt mountain? They are taxed for the sale yes.