'This Is Insanity': Democrats Discuss New Plan to Help Pay for Massive Spending Bill - An annual tax on unrealized capital gains on liquid assets for the very rich.

Townhall ^ | 10/25/2021 | Leah Barkoukis

[Empire_of_Liberty]

Yes, this is insanity, it will never happen.

I would say that about most of what is going on, today.

[CodeToad]

Completely riddled with wishy-washy regulations, no doubt.

[cgbg]

Good post.

Yup—the real rich will never pay the taxes. Their tax attorneys will come up stunningly creative lease back schemes/life insurance arrangements/offshore entities and other legal strategies to control assets without owning them.

Then the Democrats will say “oops—we need more revenue—guess we will have to lower the brackets...not our fault...none of the “experts” ever saw this coming...”

[cpdiii]

When compared with the tax-rate increases in the House bill, the emerging Wyden proposal would be significantly more progressive, in that it would raise its money from the very, very rich—likely fewer than 1,000 taxpayers—instead of the merely rich.

The original tax rate in 1913 was 7% in the highest bracket. Congress over the years raised it multiple times. Congress will do the same with this obscene idea. It will eventually encompass everyone. Congress is a hungry beast.

As Will Rogers said: “The difference between death and taxes is death doesn't get worse every time Congress meets.”

[1Old Pro]

Zuckerberg, who is the world's fifth richest person, has now winnowed his stake in Facebook to about 14%, down from 28% at the time of the company's IPO. Since Facebook went public in May 2012, Zuckerberg and CZI have sold more than 132 million shares of the social media giant, worth nearly $15 billion in total.

Then I'd short companies that the CEO is holding significant shares as if they are forced to pay taxes on billions in unrealized gains then they will need to sell for the liquidity or borrow, I imagine they'd sell some shares.

[Starboard]

Yes, this is insanity, it will never happen.

**************

Insanity is a daily occurrence these days.

[DuncanWaring]

If I’m one of the individuals affected by this proposal, and my assets go up in value 10% one year, and I pay the tax on that, and the next year they go down in value, do I get a deduction/refund on that?

[TigerClaws]

Yes. That’s quite a list.

Liberals control media and education. They can propose something that today seems radical and in ten years make it to norm. Next generation is indoctrinated with 42 genders, etc. it will continue to get worse.

They even signal the next social agenda target. Right after “gay marriage” was made law of the land by the Supreme Court - inventing rights where none exist - they did magazine covers on transgenders. All planned well in advance.

If we have no control over education and media, not sure we do anything other than watch a slow collapse of our country.

[rarestia]

They’re not even trying to hide their plans to destroy America and her economy.

[taxcontrol]

Democrats have fallen in love with every single tax that has been proposed to them.

[usconservative]

Yes, this is insanity, it will never happen.

You're not paying attention to current events much are you? It *will* happen precisely because it is insanity!

[jigsaw]

So for example, I buy $1000 of stock ...

In one year it appreciates to $1500 ...

At the end of the year I pay perhaps $100 tax on the unrealized gain ...

Then the stock falls back to $1000 ...

And I am $100 poorer thanks to these marxist bastards ...

Am I right?

[Fai Mao]

How about a 100% tax on all corporations that donated to democrats?

[Pollard]

President Biden’s $2 trillion spending package

How may are there? 1.2 trillion, 3.5 trillion, now 2 trillion.

[bk1000]

Today, taxes are merely a boot on our throats. The federal government just prints whatever money it wants.

[Pollard]

Yup—the real rich will never pay the taxes. Their tax attorneys will come up stunningly creative lease back schemes/life insurance arrangements/offshore entities and other legal strategies to control assets without owning them.

Charitable Foundation. Everyone needs one.

[Alberta's Child]

The only reason to propose this is to come up with a completely unrealistic estimate of future tax revenues to offset the ludicrous spending package Congress is considering right now.

"We can spend another $5T because this tax will generate $5T of additional tax revenue!"

Of course, the revenues would never materialize because billionaires with $100 million of annual income will have no trouble modifying their investment decisions to minimize their tax exposure.

[Alberta's Child]

Perhaps one of the only positive sides of this ludicrous scheme is that the market capitalization figures for these tech companies that are allegedly worth hundreds of billions of dollars but have never paid a penny in dividends will start to reflect the actual values of these companies.

[Fish Speaker]

“I wouldn’t call that a wealth tax” - Are you going to call it what it really is (i.e., Theft)?

[cgbg]

I have a wealthy relative who owns a lot of art.

Their tax attorney is on speed dial now.

If a bill like this passed they would probably go on a week-long retreat with the tax attorney to plot strategy.

My guess would be that they would set up off-shore entities to own the art and then lease the art from the entity—but of course it would depend on the exact wording of the legislation.