Posted on 01/26/2021 9:35:30 AM PST by amorphous
They would force people to sell assets?
I’m a retired CPA, and I can tell you that this would be a bookkeeping nightmare.
If you exercise options, even if the value of the underlying shares falls to 0, you still owe taxes on the whole amount.
didnt clinton suggest something similar? imputed income..if you can rent your house or a room in it, you are taxed on that. whether you rent it or not.
geez, I hate liberals and their attitude of 'everything that is yours belongs to the government'..
No more so than any other tax!
Next up unrealized income gains.
They should not want this because such a system would then allow the claim of losses that have not yet materialized. Bought stock at $100 and the price is now $90 so a “loss” of 10% yet have not sold the stock yet.
Next up is a sales tax due on January 1 based on the amount of money you plan to spend that year.
Where does it end????
Remember dems and the yacht tax??? Was going to raise millions,instead the rich stopped buying yachts,yacht businesses went idle and middle class people lost jobs..What looks good on paper always destroys...
They would force people to sell assets?
+++++
It would be one of the greatest sell offs in history. I would recommend shorting the stock market but of course my huge capital gain would be taxable and I’d have to sell my short positions to pay the taxes.
A really, really fast track to the destruction of a nations economy.
That would be too fair. I’m betting this plan disallows losses. Just like when you sell your house.
Pay on gains, no loss offset.
Taxation of unrealized capital gains, on what exactly? Stocks, Bonds, Realestate, Self improvement? Does education become a capital gain?
No, the idea is that if you have a stock or mutual fund share and it appreciates from $50 to $70, you’d have to count the $20 as capital gains and pay tax on it, even though that “gain” is only on paper and didn’t put any cash in your pocket, rather than figure out the gain when it’s sold and pay tax on the total gain then.
Meant to add, it’s a really really stupid idea.
Per Austrian economics, a thing has no value until you sell it, and then its value is what someone is willing to pay. Someone please correct if I misstated Austrian economics theory.
if you havent been paying attention
one of the wildest things in awhile is a group on Reddit attacking highly shorted stocks
GME halted AGAIN today.
the swings are wild
https://www.mondaq.com/unitedstates/capital-gains-tax/1009226/biden39s-tax-plan
IMO, Biden will go with whoever has his ear at the time. If this becomes law, it puts the USofA on par with Venezuela.
The HarrisXiben Regime crushing the non-institutional investors.
“No, the idea is that if you have a stock or mutual fund share and it appreciates from $50 to $70, you’d have to count the $20 as capital gains and pay tax on it, even though that “gain” is only on paper and didn’t put any cash in your pocket, rather than figure out the gain when it’s sold and pay tax on the total gain then.”
So if it appreciates from $50 to $70 you pay the unrealized capital gains, then it falls from $70 to $40 you probably do not get unrealized capital losses from these socialists. Nutsoid.
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