Posted on 04/14/2022 5:04:15 AM PDT by Kaslin
One of the most important lessons in tax policy is that the person who is handed the bill and sends the check to the taxman isn't necessarily the person shouldering the entire cost -- or even the bulk of the cost. A tax might first directly hit a few rich taxpayers, but it never remains confined there. Case in point: the logic and marketing of the novel "billionaire tax" introduced in the White House's fiscal year 2023 budget proposal.
As described, it would impose a wealth tax on certain appreciated assets of households worth more than $100 million. This would break new ground in unfair taxation by requiring these households to pay at least 20% -- composed of both traditional taxes on income and, going forward, unrealized gains in owned liquid assets.
Garrett Watson and Erica York of the Tax Foundation explain how this would work:
"Consider a household with net wealth of $200 million, $5 million in ordinary income, $10 million in accumulated unrealized capital gains from a privately held company, and an ordinary tax liability of $1.8 million in 2023 ... When including unrealized capital gains as income, the household's effective tax rate is 12 percent, below the proposed 20 percent minimum. To increase their effective tax rate to 20 percent, the household must remit an additional $1.2 million in tax ($3 million in taxes paid with a $15 million income inclusive of unrealized gains)."
OK, that's stiff, but let's focus on everyone else. The Biden administration reassures us that we -- non-billionaires or millionaires -- wouldn't pay a dime of this tax as it would only be imposed on the top 0.01% of households, with half of the revenue coming from checks written by billionaires. I wish.
(Excerpt) Read more at townhall.com ...
They are already doing this on your property taxes.
Let’s say you paid $100K for your house 30 years ago. The country says your house is worth $200K now and taxes you on that assessment. You are paying a tax on the unrealized capital gain on the value of your house.
You house is worth what you paid for it at the time you purchased it. If the county needs more money, then let them raise your tax rates and suffer the consequences at the ballot box. But yo raise your taxes by saying your house is worth 2X what you paid for it is in effect a wealth tax.
tru dat
I think it should be HIGHER. These woke billionaires want to carry water for Biden and advocate for socialism? Give it to them good and hard.
The problem is that once the parasites get a taste for ‘giving it to them good and hard’ they think everyone deserves it.
Raise MY taxes will they!!!
They might fool the Little People, but I'll just raise the cost of all the products my factories produce to make up for it.
These soak the rich tax schemes have a way of backfiring. In 1990 Congress passed a 30% excise tax on luxury yachts which resulted in 42% drop in boat sales and the loss of thousands of jobs in the US boat building industry. The tax did not result in any net gain in taxes and the luxury boat buyers simply bought their yachts from overseas builders.
If Democrats call it a billionaires tax you can be sure it will affect just about everyone but billionaires. Same logic applies to anything they label as “fair”.
What happens when a recession/depression drives down the value of what I own????
This is an annual TAX?
A lifetime of working for something & an annual tax on UNREALIZED capital gains???
A switcheroo—AGAIN—from the Dems.
Which is EXACTLY what led to Prop 13 in Calif in 1978.
WHO was President in 1990???
I thought that was passed under Carter...
Who ALWAYS seems to resent any level of success.
He inherited a peanut farm—and ran it so poorly, he filed for bankruptcy 3 times—on 7 year cycles.
Unrealized gains are NOT income. There is NO constitutional authority that allows taxation of unrealized gains.
Unlike TX, FL limits the increase of taxable value in homesteaded properties to 3% per year.
AND if you sell your homesteaded property and buy another place to live in FL, much of the tax benefits are transferred to your new home.
Fl politicians avoid messing with seniors.
Don't let them in on how this works!
As I understand there are many examples where tax revenue actually increased by lowering tax rates, but try to explain this to a liberal Democrat.
BEAT ME TO IT! :-)
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