Posted on 10/27/2021 2:48:49 AM PDT by Kaslin
Our current secretary of the Treasury, Janet Yellen, is busy trying to find a way to tax wealth without calling it taxing wealth. She has eyes on taxing unrealized capital gains. What this means simply is taxing people for money they have not earned or received. That's it in a nutshell. That definition should leave even those who have never had a course in accounting or finance shaken.
Not only is Janet Yellen considering this, but the Democrat party is on board as well. Democrats claim that it is needed in order to pay for their agenda. You know — the one that President Biden says pays for itself. The idea of taxing you for the income you have not made is also a policy speaker of the House Nancy Pelosi proposes. Apparently, there is some confusion here.
Looking at this from my point of view, I recalled a picture of Casey Stengel, nicknamed "the ol' Professor," when he was the manager of the New York Mets in 1962 — a team considered the worst team to ever play in the major leagues. He had his hat off and scratched his head with the caption: "Can't anybody here play this game?"
Think about how absurd this idea is. Imagine if an Internal Revenue Agent showed up at your house and said, we decided that you have to pay tax on the money you never earned. Aside from how insane that sounds on the surface, one need only ask: "If I didn't receive or earn that money, with what do you expect me to pay the tax?" That, in a nutshell, is the entire problem.
(Excerpt) Read more at americanthinker.com ...
I guess their Inflation tax is not stealing enough for them.
All purpose headline: “ Why Democrats’ Scheme to (insert policy here) Should Terrify You
crazy idea, and will never work - BUT, I do believe allowing people like Musk and Bezos and Gates and Zuckerberg to accumulate $100’s of billions in wealth, borrow tax-free against those appreciated assets instead of taking a paycheck (which would generate a tax bill), and then ultimately, when they die, being able to pass on those appreciated assets to their heirs - also without being taxed because of the stepped up basis rules, is a system that is rigged for the ultra-rich and if there is a way to tax the hell out of these rich liberals, I am OK with it.
Problem is, they will find loopholes and the average guy will get screwed instead.
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?
Sounds to me like IRA’s, ROTH’s, and such will soon be targeted.
Yeah and John Roberts called the ACÁ penalty a tax.
The stepped up basis is out last I heard. So that’ll hurt small farmers and business owners worse. The Rich Liberals won’t mind being taxed, they’ll just raise their prices to cover their expenses.
Just wondering if there’s a crash in the market, will the Rich Liberals get a refund?
Home equity would be a big one.
Close the Interest Carry Forward Loophole that allows Wall Street and Hedge Funds to avoid paying taxes.
Eventually the Unrealized Capital Gains tax will force homeowners to pay capital gains tax on increases in their home values.
Then the depreciation and any associated expenses on ANYTHING you own, buy or acquire should be deductible from those gains or added to the basis like home improvements. Gas, utilities, groceries, ammo, tools, education, time and labor, etc.
I think they are trying to tax success and hoping you will keep trying to be successful...like Sweden does.
To hear business guys there tell it, it’s their duty to earn for the state.
Dumblecrats suck at every level.
Anyone who believes this will actually impact the wealthy are total morons.
The other part of this legislation is the repeal of Trump’s SALT cap that forces the wealthy to pay more, especially if they live in a high-tax blue state.
So, all this “tax the rich” nonsense is nothing but a smokescreen.
BUT!!!! Good luck if there is a bust in the housing values like 2007-10! My house decreased 30% in value, so would that be a tax deduction?
Same with unrealized investment gains. The "dot-com bust" of 2000-02 had investors crying. Would these IDIOT LEFTists think that neither of these RECENT market corrections could happen again?
The stupidity ... it BURNS!
Half the people will pay taxes on money they have not received and the other half will receive tax credit payouts for money they have not earned. Brilliant!
Mark-to-market accounting
https://en.wikipedia.org/wiki/Mark-to-market_accounting
Or they will go to countries that will treat them better. That’s the thing about socialism, other than it has never, ever worked - you can’t stand in a bucket, lift the handle, and expect to rise above ground.
Less government is better government, and one set of laws for everyone. Pretty simple.
The reality is, this has been going on to an extent since long long ago. Example you have a taxable mutual fund account. It does well year after year, meaning it is making you money and thus growing, making you more and more money as it grows. After ten or twenty years taxes begin to be a burden.
You do not remove money from the fund ever, but if your account grows by 30,000 thousand dollars, you owe tax on it at the end of the year on top of all your other taxes. The tax is called capital gains meaning your rate comes under capital gains not off your paycheck rate. Regardless it is still a tax, and remember above you are not ever removing money from the fund.
You may consider it your retirement vehicle even thought that should be in an IRA, for the tax advantage you chose to have a taxable account and it continues to do well. You owe more and more in tax. Money your account has received that can hit the skids tomorrow. Money that is NOT in your pocket, only a figure in your account on the last day of December every year. Money that due to the ups and downs of the market can be gone the next day, but by April, the government wants it’s share of your fund in taxes, regardless of the worth in April.
You are paying taxes on money that you do NOT hold in your hand. Period. Anyone with a taxable mutual fund account has been dealing with this issue for years. Adding thirty forty or fifty thousand dollars or more in capital gains taxes to your limited income, that the government wants in CASH, is a burden on anyone and especially on those trying to save for the time you can no longer work.
Remember the idea of investing for your future, is not taking money out until you are old and unable to work. It truly is for a rainy day. The government doesn’t see it that way and they want CASH for your privilege to earn money they think they are owed for your good fortune yearly, rather than at the point you begin to receive the money not on paper in your account, but actual cash in hand.
By this time you will be well aware of the tax advantage of an IRA, but you may not be aware of all the rules regarding those accounts until after 70 and a half when the government in it’s lack of wisdom demands that you then remove a portion of the fund whether you need it, want to or not. You are mandated to remove it, stop it from further growth etc. always and ever in a relentless effort to relieve you of cash for their ever luvin benefit, not yours. They aren’t demanding you remove all of it, just a portion each year based on a formula on your remaining years as calculated by government actuaries.
The proposal Yellen and the Democrats are talking about is much much much broader than what I have explained here, and would pretty much cover any wealth you try to gain. Including your house. Speaking of being able to survive in your old age without the means of survival. We who attempt to save will be assaulted by taxes beyond belief, even as those owning taxable investment accounts with mutual funds have been assaulted every year if our accounts have grown that year. The years they don’t grow you are not getting a refund, but your surely will be taxed when they do grow.
Your government, always thinking of ways to extract what you have never seen in your hand but they see a portion as owed to them, for use as they see it. As some tv progressive used to say, “What’s not to love?”
“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?”
Perhaps, but it was billionaires who stole the election from Trump, probably more than any other group. They can STEW in this tax and they can fight it. I’m sick of defending them.
As to the middle class, we have FAR MORE near-term tax threats than a billionaires tax eventually drifting down to our brackets...starting with basic income taxes, carbon taxes, driving (mileage) taxes, meat taxes - the list is endless.
The REAL birth of crypto?
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