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 ...
Not trying to defend billionaires, just pointing out there will be a natural progression to then also tax millionaires.
Middle class has massive wealth of unrealized capital gains from housing to retirement accounts without the ability to move their wealth around that billionaires have. Billionaire Perot used to have his wealth in tax free municipal bonds which are exempt from federal and state income taxes.
Eventually the Unrealized Capital Gains tax will force homeowners to pay capital gains tax on increases in their home values.
Perfect for farmland grabs.
That’s fine and dandy where you can just sell some shares from your account if you need cash to pay the tax.
But try that as a farmer already scraping by in debt, trying not to lose his or her land.
What about the present value of your home??? My husband built our home in 1985 and I mean literally: framed, sided, shingled, plumbed and put in electric himself. We used our savings and a $25 K mortgage @ 13 1/2% (still recovering from the Carter years) to pay for the materials. It is worth a couple of hundred thousand more than what we put into it then. We would be forced to sell it to pay the tax on its increase in value and have no place to live. What a plan!
terrify is a bit strong
“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?”
If tomorrow the government confiscated the wealth of the top 1000 Americans, it still would be less than 1% of the national debt.
>>Regardless it is still a tax, and remember above you are not ever removing money from the fund.
Same is true of a savings account, at least back when they actually paid interest - wether you take it or not, you earned it - if you want tax-free growth use a retirement account.
Mutual funds incur capital gains because they are constantly buying and selling (and paying dividends) which are all taxable events, just because you didn’t spend the money, doesn’t mean you didn’t earn it.
Maybe they should try taxing people's unrealized income from unrealized jobs.
Those are the jobs people used to have, or tried to get but couldn't. The unrealized income is still "money they have not earned or received," except that it's from an unrealized job instead of an unrealized capital gain.
-PJ
The difference is Mutual funds distribute those gains. Unlike holding an individual equity long term.
I do not understand the supposed difficulty here, not that I support it.
Every local authority already has a decades-old taxing system on the average American’s largest wealth item — their home.
It’s property tax — levied on your biggest single wad of wealth. Don’t pay it, and the gov’mt takes your home.
Just put all wealth in the same bucket; physical property (e.g., home), bank holdings, etc. Pass a wealth tax — the progressive shiteheads would love calling it that. Tax and seize until gov’mt owns all private property. One important step to installing a true communist system — something every progressive has always wanted.
Want to see what the end game is? Don’t bother with Cuba or Venezuela, they are pikers. NorthKorea.
My house is worth 3 times what I paid for it 15 years ago. I have not sold it and thus “have not” realized a capitol gain but the government would like me to pay about about 100,000 dollars on an “unrealized gains.”
This is simply theft.
It’s conditioning for a future wealth tax on everyone. At the end of every year in addition to getting W2s and 1099S you will get a net worth statements.
Get a new accountant...that is wrong, you never pay taxes until you actually sell the asset...
What tax rate are they proposing? Anyone know?
It is like a death tax without having to go cold.
Ummm, no. That's not how it works in a taxable mutual fund. You're not taxed on the growth, but on the proceeds (capital gains) that were generated during the fund year by the selling of stocks internal to the fund. You have the option of taking the proceeds in a payout or being reinvested into the fund. That's different than holding an asset that appreciates and doesn't generate proceeds that can be taken.
bmp
I agree, your assets are encumbered, to feed us. Government is not your or our friend.
You will admit that selling shares to pay taxes, is equally responsible for screwing the investor whether farmer with equipment loans and cash poor. It is government taking what doesn’t belong to it, but take it they will.
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