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At current income tax levels, if we go to an indirect 'wealth' tax route via unrealized gains, would need to decrease significantly to be viable without being f
by novok 3y ago
At current income tax levels, if we go to an indirect 'wealth' tax route via unrealized gains, would need to decrease significantly to be viable without being forced to effectively liquidate your business within a couple of years to the government. Imagine if property tax was %10-50 of your property value vs. the %0.5-%2 it is today. Nobody would own their properties anymore in a span or a year or two.
Unrealized gain tax would create a huge industry trying to put valuations on random restaurants and car dealerships, and the market for small businesses like that are very illiquid, so they will get detached from reality fairly fast.
- rrrrrrrrrrrryan 3y agoWealth taxes generally only apply to the wealthy. The current proposals kick in at $100 million net worth. The restaurants you're concerned about are going to be fine. The idea is to tax people who make their money through asset appreciation at the same rate as the folks who make their money by selling their labor. > Imagine if property tax was %10-50 of your property value vs. the %0.5-%2 it is today. Nobody would own their properties anymore in a span or a year or two. I'm not sure if this is a disingenuously hyperbolic argument, but on the off chance you literally believe the government is trying to charge recurring, annual, double digit percentage taxes on the entire value of the assets, that's not how it works. The tax is only on the appreciation. If the asset doesn't appreciate, no tax is owed.