Posted on 10/27/2021 2:48:49 AM PDT by Kaslin
Not trying to defend billionaires, just pointing out there will be a natural progression to then also tax millionaires.
Middle class has massive wealth of unrealized capital gains from housing to retirement accounts without the ability to move their wealth around that billionaires have. Billionaire Perot used to have his wealth in tax free municipal bonds which are exempt from federal and state income taxes.
Eventually the Unrealized Capital Gains tax will force homeowners to pay capital gains tax on increases in their home values.
Perfect for farmland grabs.
That’s fine and dandy where you can just sell some shares from your account if you need cash to pay the tax.
But try that as a farmer already scraping by in debt, trying not to lose his or her land.
What about the present value of your home??? My husband built our home in 1985 and I mean literally: framed, sided, shingled, plumbed and put in electric himself. We used our savings and a $25 K mortgage @ 13 1/2% (still recovering from the Carter years) to pay for the materials. It is worth a couple of hundred thousand more than what we put into it then. We would be forced to sell it to pay the tax on its increase in value and have no place to live. What a plan!
terrify is a bit strong
“If the government goes after billionaires unrealized capital gains what will stop them from eventually going after the middle class and their unrealized capital gains?”
If tomorrow the government confiscated the wealth of the top 1000 Americans, it still would be less than 1% of the national debt.
>>Regardless it is still a tax, and remember above you are not ever removing money from the fund.
Same is true of a savings account, at least back when they actually paid interest - wether you take it or not, you earned it - if you want tax-free growth use a retirement account.
Mutual funds incur capital gains because they are constantly buying and selling (and paying dividends) which are all taxable events, just because you didn’t spend the money, doesn’t mean you didn’t earn it.
Maybe they should try taxing people's unrealized income from unrealized jobs.
Those are the jobs people used to have, or tried to get but couldn't. The unrealized income is still "money they have not earned or received," except that it's from an unrealized job instead of an unrealized capital gain.
-PJ
The difference is Mutual funds distribute those gains. Unlike holding an individual equity long term.
I do not understand the supposed difficulty here, not that I support it.
Every local authority already has a decades-old taxing system on the average American’s largest wealth item — their home.
It’s property tax — levied on your biggest single wad of wealth. Don’t pay it, and the gov’mt takes your home.
Just put all wealth in the same bucket; physical property (e.g., home), bank holdings, etc. Pass a wealth tax — the progressive shiteheads would love calling it that. Tax and seize until gov’mt owns all private property. One important step to installing a true communist system — something every progressive has always wanted.
Want to see what the end game is? Don’t bother with Cuba or Venezuela, they are pikers. NorthKorea.
My house is worth 3 times what I paid for it 15 years ago. I have not sold it and thus “have not” realized a capitol gain but the government would like me to pay about about 100,000 dollars on an “unrealized gains.”
This is simply theft.
It’s conditioning for a future wealth tax on everyone. At the end of every year in addition to getting W2s and 1099S you will get a net worth statements.
Get a new accountant...that is wrong, you never pay taxes until you actually sell the asset...
What tax rate are they proposing? Anyone know?
It is like a death tax without having to go cold.
Ummm, no. That's not how it works in a taxable mutual fund. You're not taxed on the growth, but on the proceeds (capital gains) that were generated during the fund year by the selling of stocks internal to the fund. You have the option of taking the proceeds in a payout or being reinvested into the fund. That's different than holding an asset that appreciates and doesn't generate proceeds that can be taken.
bmp
I agree, your assets are encumbered, to feed us. Government is not your or our friend.
You will admit that selling shares to pay taxes, is equally responsible for screwing the investor whether farmer with equipment loans and cash poor. It is government taking what doesn’t belong to it, but take it they will.
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