Posted on 12/12/2019 5:38:01 PM PST by karpov
Most USA millionaires are private business owners.
How will that work?
Will an army of IRS appraisers calculate the monetary value of businesses they know almost nothing about?
And, even more important, most business owners DO NOT WANT partners or shareholders.
That means the asset tax will come straight out of their take home pay, or it will have to be borrowed.
And the “2%” asset tax is extremely deceptive.
That is NOT an extra 2% of income tax. That is 2% on the total value of your business EVERY YEAR.
In a bad year, that 2% could swallow 100% of your take home pay.
Complete insanity.
“Even worse, if they have to liquidate assets, there has to be someone left with the money to buy.”
not to mention, coming up with a single number for each person that defines their “wealth” would require a new tax code that at least doubles the complexity of the existing one, and would require the number of auditors at the IRS to over double ...
6% is roughly 1/16th. That’s a pretty steep drop in total wealth.
The inflation and tax adjusted return on the SP 500 (all dividends reinvested) for the last 90 years is about 7% per year.
Since 90% of investment professionals UNDERPERFORM the SP 500 over any given 10 year period, an annual 6% asset tax is literally insane.
Speaking of micro-returns on your money, did you know that a “lepton” is (was) 1/100th of a Greek drachma?
The Greeks use the Euro now, no more drachmas.
Anyway - I like your screen name “lepton,” which, as I recall, commonly refers to irreducible particles like electrons and neutrinos.
Speaking of micro-returns on your money, did you know that a “lepton” is (was) 1/100th of a Greek drachma?
Yes, I did. My “about” page references that: A small sliver of silver.
Both meanings are an admonishment of my small significance. :)
Au contraire...
In the world of physics, it means you are indestructible!
And, almost every time you get punched by a photon, you instantly punch back.
Ezra Pound:
“The ant is a centaur in his dragon world.”
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