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 ...
It appears you missed my point. Passbook savings accounts are readily available cash on hand. They were never designed to be necessarily a means for retirement, but a way to earn interest on money you needed access to.
Thanks for making a point I chose not address based on the length of my previous post.
Has nothing to do with accountant and everything to do with tax law. It isn’t called a taxable account for nothing.
I’m sure you saw the words capital gains mentioned. I failed to talk specifically about reinvesting the gains. The point is despite reinvestment those gains can go poof in a short period of time as easily as they can grow. It’s called risk.
They’re not my assets and you are wrong. An investor just sells some shares. A farmer may well be forced to sell his farm. Is that really so hard to understand?
They don’t consider it to be your money.
I want to see Warren Buffet taxed. He is paying under 1%.
Why not? They’re now arresting people for crimes they have not yet committed.
This reminds me somewhat of a proposal that I thought was once credited to Bill Clinton back when he was in office. What I can remember was that it was a proposal to tax a person for the rent that could be collected IF you rented out your home. If you didn’t rent it then obviously you weren’t collecting any “capital gains” to pay the tax. The idea was quickly shut down as I recall. This sounds like the same thing. Can’t figure out as to how anyone would think this could possibly work, but it’s not much different than a bank robbery.
How are they paying for their stuff? With no taxes.....
I think the tax would be a great idea! Imagine all the oligarchs having to pay taxes on the multi-million dollar paintings and land holdings. How about that mansion in the Hamptons they bought 25 years ago, or their NYC real estate holdings? Or that Amazon stock or FaceBook stock that the tech giants and hedgies have? But does anybody think that the same politcos who could not bail out crooked Wall Street types quickly enough is really going to pass it? Dream on!
See post #49.
But what If I own ZXZ company on the NYSE....and I've $2 k profit in it...but I still own it.
Are they going to tax me on this un-realized gain??????
What if I don't sell it and down the road I held for a loss....but I've already been taxed?!?!!?
These people are nuts.....
What this whole scheme looks like is a situation whereby the Democrats can buy their way out of a situation where they have placed the nation into a debt & deficit that could never be paid off..... At the expense of every private citizen, of course.
Probably unconstitutional...unrealized cap gains are not “income”:
https://www.linkedin.com/pulse/build-back-better-legislation-tax-unrealized-capital-steven
https://www.wsj.com/articles/democrats-billionaire-tax-constitution-11635258358
You have been given bad information...I am referring to tax law. You are mistaken on what you think the tax law is in this issue...
You have not produced facts to prove your case.
Let me rephrase so you understand.
Investment firms send reports of taxable activity to the IRS.
The same firm sends reports to the investor signaling a taxable event and how much money is involved.
Should my tax return or anyone else’s return differ from the reports the IRS has received regarding income or capital gains, or any other taxable event, you are likely to be questioned about the disparity.
Gathering those reports in some cases is a chore. You always have the option of going to the IRS and asking for what they have in your file for the year in question.
What is owed is as clear as the IRS can make it, which in many cases is not clear, but I and the CPA make my tax return match what the IRS has for data in their possession.
the real reason you seem to be confused is you apparently don’t understand that underlying stocks in a mutual fund are constantly being bought and sold, and that is a taxable event for investors in the fund. The investor hasn’t sold his shares in the fund, but the firm has sold their position, which triggers taxes for investors.
This is one reason ETF’s have become popular due to better tax efficiency for the individual investor. Tax efficiency is about to go out the window for everyone if this idea of taxing unrealized capital gains is allowed to gain traction much less pass into law.
What’s difficult to understand is your harping on the issue.
Obviously selling shares for taxes in my opinion is not the same as losing a farm. I don’t think that was my point. It seems to be yours.
That is different from your original post..of course any assets sold are subject to capital gains. The law being presented has nothing to do with that. You need to understand...you have managers you pay to manage your funds..they represent you. When they sell your stocks contained within your fund you are responsible for paying taxes on gains. Conversely if you lost money on some you can write that off the gain...
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