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> Taxes on unrealized capital gains would be a start A start to what? There is no way of taxing unrealised capital gains that makes sense. You're taxing theore
by sofixa 7mo ago
> Taxes on unrealized capital gains would be a start
A start to what? There is no way of taxing unrealised capital gains that makes sense. You're taxing theoretical value that may or may not actually exist. Rebates (e.g. you're taxed on theoretical current value, but when you realise the actual gain, you get back the difference if there is any) just moves the problem around, makes everything complicated, and penalises attempting growth.
- Scarblac 7mo agoIt's not hard. Tax the amount the stocks are valued at at january 1. Make exceptions for investments in illiquid things.
- sofixa 7mo agoOk, and on the 2nd the price crashes, company goes bankrupt, stock is worth zero. You were taxes on theoretical value that you can't sell at to pay that tax. What then?
- BrenBarn 7mo agoFor me, a lot of these issues become immaterial if the threshold is high enough. If the threshold for a particular tax is assets over $100 million, or a billion, then the answer can just be "you are totally screwed" and I'm basically fine with that. If you don't want that risk, just don't get that rich.
- dontwannahearit 7mo agoThat doesn't sound like it could be gamed, at all.
- squeaky-clean 7mo agoThis would destroy every retirement investment vehicle for the middle class more than it would affect the 1%
- BrenBarn 7mo agoThat can be mitigated by setting high thresholds on the whole process (e.g., the tax doesn't apply if your total net worth is under $10 million).
- squeaky-clean 7mo agoNow no one has a billion dollars but they have 100 companies they control each worth 10 million. These lawsuits have to be designed with the idea that the people with the most resources will try to exploit them, and the people with the least resources will be unable to.
- BrenBarn 7mo agoI said tax it on the total net worth. Splitting your wealth among different companies shouldn't affect anything. > These lawsuits have to be designed with the idea that the people with the most resources will try to exploit them, and the people with the least resources will be unable to. Agreed! That is why the goal needs to be to just directly and explicitly reduce the wealth of those with the most.
- bdangubic 7mo ago> There is no way of taxing unrealised capital gains that makes sense. There is - tax it when it is being used as realized gain (e.g. when you get a loan like our billionaires do). fine to leave it alone as unrealized and not be taxed but as soon as you use it as real/tangible thing you gotta pay taxes, it is that simple
- BrenBarn 7mo ago> You're taxing theoretical value that may or may not actually exist. If it's real enough to, say, use it as collateral for a loan, it's real enough to tax. > penalises attempting growth There is a lot of growth going on that should absolutely be penalized.