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.
Sounds to me like IRA’s, ROTH’s, and such will soon be targeted.
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.
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.
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
The REAL birth of crypto?
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
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
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.
What tax rate are they proposing? Anyone know?
bmp