Yes, I mean more than now. Transactions will all but stop. Who would sell anything if he thought that a nearly 50% tax on capital gains is insane and thought that some how insanity would be stopped? Wouldn’t he just hold and wait? If relief did not come the damage would be done.
People dependent on transactions would not have work. Properties would not be sold. Long term leases maybe? But what about intangible property? What about people wanting to cash out stocks for living expense? I suppose they could hold the amounts down to below the 200 to 250k threshold. It is not certain that these sales would be included in income though. Maybe there is a loophole there?
Business owners would also find it very hard to sell and wouldn’t. Some other transaction might take place though such as long term leases again.
Of course, this is just more of eat the “rich”. The real rich will probably never see a problem though.
I am signed up to handle a legal plan in the USA & Canada that includes IRS tax audit coverage. I predict that’ll be a big selling point with both individuals/families and small business owners, which are covered under different plans. Hope my health improves enough to get out there and sell that and my other ventures.
No. Transactions will continue but they will be off the books, under the table.