Posted on 03/26/2022 3:44:18 PM PDT by algore
the worlds richest men, including Elon Musk and Jeff Bezos, have much of their wealth in the form of stock.
As their stock rises in value, they are able to finance lavish lifestyles by taking out loans secured by their stock holdings. But loans are not taxed as income, and in many cases the interest payments are tax deductible.
The rising value of stock holdings -- known as unrealized gains -- is also not taxed as income. Capital gains taxes are only imposed when the stock is sold.
s a result, some 400 billionaire families paid an average federal tax rate of just over 8 percent of their income between 2010 and 2018, according to an estimate from the White House Office of Management and Budget and Council of Economic Advisers.
However, critics of a 'wealth tax' argue that treating unrealized gains as income is unfair and could lead to unintended consequences.
If billionaires are forced to pay taxes on the rising values of their stocks, even before they sell them at a profit, they could be forced to sell off control of companies that they founded in order to pay their tax bills, critics say.
Under Biden's new plan, billionaires already paying more than 20 percent in federal taxes would not owe additional taxes, according to the Post.
The taxes paid toward the minimum tax would count toward whatever billionaires owe whenever they sell their stock and pay ordinary capital gains taxes.
'The Billionaire Minimum Income Tax will ensure that the very wealthiest Americans pay a tax rate of at least 20 percent on their full income,'
'This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters.'
(Excerpt) Read more at dailymail.co.uk ...
Or any congress critter ?
My prediction: Income from these families will actually decrease in the next tax year.
Gotta pay for Biden’s war.
I don’t even think the RINOs in the Senate will go along with this garbage. It is also unworkable. If the stock goes down will they get a tax credit?
Very easy for the super wealthy to show zero income. Corporations “loan” money to their officers all the time. Stock options are not income until they’re sold. Call this another Biden diversion no doubt cooked up at Davos.
Who’s plan ? it can’t be Biden ,LOL
What is the purpose of our tax system? Is it to raise money or punish people?
This is a fundamental question that needs some attention.
It is about control and data gathering.
We can print money.
And if their stocks have unrealized losses like during a recession, will they get to claim those losses?
American oligarchs. That didn’t take long.
You forgot they use the tax code as a method of control behavior.
Congress NEVER hurts themselves OR their wealthy donors... so this isn’t gonna happen.
WEF exempt, of course.
Like what do they need all that money for anyway man.. It’s just not fair. Man
My house is worth three times more than I paid for it 15 years ago. This is an unrealized income. If we do this to billionaires it soon becomes millionaires and then you and I.
In case you haven’t noticed, the Biden admin’s first impulse is to punish. Don’t get the vax, you’re fired.
Congress NEVER hurts themselves OR their wealthy donors... so this isn’t gonna happen.
A little perspective. Even if the government got a straight up BILLION DOLLARS in tax money from the 700 billionaires, that’s not even HALF of Biden’s recent $1.5T spending spree. People think that the super rich have money that could solve everything, but you have to take all of it just to make a dent in what these fools in DC are spending in just a year.
I have always had a big problem with property taxes for the very situation you describe. You buy a house. You live in it. You pay property taxes. Then, because of market influences, or inflation, suddenly, it is worth three times as much. The local tax assessors now hand you a property tax bill three times higher than what it was 15 years ago. What did you do wrong? I mean, sure, theoretically you are wealthier, but you still need a place to live. Maybe you don’t want to move. Even if you did, the next place would be more costly to buy. Why should the local government reap a tax windfall simply because the market value increased? What if you are an older person on a fixed income? Taxing wealth is a very destructive policy, in my opinion.
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