Wall Street will love that!.......................
Can I ask a stupid question about these unrealized gains?
So you have investments , and you have a gain on paper, but you don’t have actual cash on hand from the assets.
Isn’t it quite possible that some people might have to sell or liquidate the Assets, in order to pay the taxes due on an unrealized gain?
My other stupid question regarding unrealized gains, is what if you have an unrealized gain one year, but then you’re stock or other investment goes down in value the next year?
You may have paid taxes in the first year because you had an unrealized gain, but then do you get a tax refund in Year 2, for an unrealized loss?
I can see this provision of tax law causing lots of complications.
“unrealized gains of liquid assets such as stocks.”
We all know why that is unworkable. Suppose your asset doubles and you pay a HUGE tax on that phantom gain. Then the asset goes underwater and you have ZERO net gain but the GD government still has your tax money.
Does the government refund you the tax you paid on that phantom gain?
Taxing unrealized gains is ludicrous. Will they give tax returns for unrealized losses?
Wall Street and specifically the big banks have perfected the perfect crime and its the most lucrative scam in history.
They inflate the market with rigged instruments that only they understand, they get early information to maximize returns, and the bigwigs get massive bonuses based on their returns. “We” (the American people) even give them free money to create the bubble (quantitative easing).
When the bubble(s) inevitably bursts, “we” bail them out because they are “too big to fail”. Rinse and repeat.
What a racket. The little guy gets screwed at every turn since we are forced to play their game.
Remember.... nobody went to jail for the 2008 housing crisis that was a government supported FRAUD. Nobody. Why? Because they wanted equity in home ownership (politicians) and the executives wanted their bonuses (bubble returns).
We still live with the damage and this administration is now playing the same fraudulent game but this time it is not with real estate - it is with the currency.
What could go wrong? Why can’t the American people see that the only people who benefit from the boom-bust bubble cycle are the banksters and politicians?
Does it means if your stock goes up, you will pay tax, but if then it crashes, what happens? You would pay taxes on losses?
Stocks are not liquid assets. They will have to sell off their stocks to pay the tax. So the stock price tanks. And there won't be any gains to tax. So the government crashes the stock market, destroys the wealth of the middle class, and gains no revenue. Brilliant.
So if your stocks tank, does the government give you your money back?
He knows that it’s unconstitutional to tax unrealized gains so he can pretend to be progressive with the pain of doing it.