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 ...
If you were to tax unrealized income we would have a huge depression that would hurt everyone. Firstly, lets point out that we all have homes. And those homes go up in value all the time. Taxing that as income would kill many people. Others own family businesses. If that was taxable income then family businesses would be a thing of the past. You would have to sell parts of it every year. And who would buy it? Stock prices would crash. If the richest have to sell every year to pay taxes, the price of stocks would be pennies on the dollar of their current value. And everyone would feel the crash, not just the rich.
As it is Steve Jobs died and Apple crashed for 3 years as his wife sold shares. Bill Gates took much of his money out of Microsoft and the stock fell for 5 years. Since the divorce, Amazon stock has basically tread water for 2 1/5 years. Think of what would happen if these events hit every company every year.
What a moron. What does he want to do with the money? Between him and Congress, they have to be the most irresponsible, imbecilic, unaccountable cohort (with a few individual exceptions like Rand Paul) when it comes to finances on the face of the earth. Thirty trillion in debt? Joe and the vast majority of Congressmen and Congresswomen do not even know that the quantity of zeroes after the number 30 is meaningful.
It would be better to pass a flat tax of, say 10%, with no deductions except to charities. And everyone pays.
well, the “war” didn’t work, in fact, it made Dementia Joe’s polls go DOWN, so what’s remaining in the Democrat’s armamentarium? oh yeah, tax the begeesus out of the gazillionairs ... that always used to be popular with the plebeians ... though somehow i don’t think that will matter too much if actual shortages of food & fuel materialize ...
They will not pay a dime.
We are in real trouble in this country.
This is a huge step in the wrong direction. More proof that liberalism is a mental disorder.
The question asked when the Income tax was first adopted is just as pertinent in this instance...who says how much is thr right amount? Who controls the rate?
The FairTax is a much better way to fund government, ALWAYS.
So now we have to give an accounting of our family wealth?
I believe you're seriously misinformed on this.
Large amounts of income are nearly impossible to legally disguise. Most "super wealthy" are continuously under audit.
Loans have to be repaid. It takes income to repay them and the non-deductible interest they are charged.
Stock options are not sold, they're bought (at the price the stock was when they were issued). When they are sold the value increase is always reported as income. If they are held long enough before they are sold, the income may be taxed as long-term capital gains.
Why doesn’t it say president OBIDEN? Just president.
Or any congress critter ?
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They routinely write themselves exempted into all these bills iirc.
Example.
Insider trading.
Mandatory Obama care.
Large amounts of income are nearly impossible to legally disguise
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But easy peasy for IRS to ignore
if
your’e. ‘ political reliable ‘.
“My house is worth three times more than I paid for it 15 years ago. This is an unrealized income”
That is already happening, it is called property taxes.
States also tax personal property and employer supplied “goodies”.
The fix is easy repeal the 16th Amendment and get rid of all Federal income taxes. the Federal Government ran just fine on excise and import tariffs. Let the states do all the taxing and figure it out, for their citizens.
If this passes, the games on regulating valuation of assets will be epic.
Good- the majority of the super rich voted for Biden and hated President Trump, so F them!!
The prez will soon learn that the super rich do not consider themselves to be American.
from my home page
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I proposed a Shallow Exponent Flat Tax.
https://freerepublic.com/focus/f-bloggers/4006199/posts
Something like Tax = 10% X {[Income]^1.05}
but with the flat tax coefficient more like 2.4 and the exponent more like 1.13......
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I’m not seriously misinformed. Apple and others similarly situated created a new profit model. Instead of paying dividends which are taxed, they simply reinvest in the company and increase the value of the stock. Typically CEOs and other corporate officers hold large amounts of shares. This essentially creates a profit model not unlike a 401(k) plan. Profits accrue without taxation until they are sold. This allows for a huge increase to accumulate over a multi year period. Dinosaur corporations can’t do this because their shareholders are typically needing constant income from dividends just to survive. Please tell me where I’m wrong here
“If this passes, the games on regulating valuation of assets will be epic.”
a few years ago I would have said that is crazy clown world stuff, not a chance.
Today I hesitantly say the same thing
Most Americans think of income as a paycheck. Typically, the wealth of the super wealthy is not in "income" but in their stock holdings and property. E.g., Warren Buffett's annual salary has been $100,000 for the past 40 years. However, Buffett owns about $100 billion of Berkshire stock.
I propose that we eliminate 90% of the federal government and return power to the states and the people… By force if necessary.
Hosea- My people are slaves because they are ignorant. Read the constitution. Stop allowing the establishment to set the narrative.
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