Posted on 08/31/2024 7:20:23 PM PDT by Mr. Mojo
“It would give the government the first claim on income”
This is a LIE!
It’s not “income”, unless you realize the gain. otherwise, it’s imaginary income.
I’ve had stocks show unrealized gains one day and losses the next, what kind of bookkeeping nightmare is going to track that, after they’ve taxed on the day of the imaginary gain?
Total nonsense!
“Nice farm you got there“
Worst nightmare for many legacy farmers/ranchers*. Belgium, Ireland got nuttin on us for trying to control ag.
Think paying tax on purchase price of $1400/acre to $15,000/acre now . Years ago to settle an estate tax dispute .gov sent an assessor from California. Horrible
Extortion:
Leftists (formerly known as Democrat) Party, threaten taxes.
Donors to “Democrat” Party, then “pay” more to “Democrats” to not be subject to the tax . . . but are paying for a tax
Exemption.
Thus, via Extortion-and-Paid-for-Exemption, the “Democrat” Politburo gets a portion of cash flow that it *DEMANDS.*
Which is the goal. The market would crash and you'd be forced to sell to China/Blackrock. You WILL eat bugs and live in huge concrete apartments Soviet-style.
The goal is to get people to think that "ownership is too much trouble" - the same way they have taught people to think about operating a small business, now.
We have a ton of people on her with 100 million dollar net worth it appears.
Yes, well, this would be that on steroids!
IF done over & over again, you would keep paying taxes on the same ‘GAIN”.
Pay on “$200,000” the first time-—Then on THAT $200,000 Plus more the next year???
ALSO-—DO YOU GET A REFUND when the values DIVE?
ANYONE who has held a property for a long time KNOWS that values rise & fall.
THE BOOKKEEPING ON SUCH A PLAN WOULD SWAMP THE APPLICATION OF THE TAX.
THE COURTS WOULD BE FILLED WITH THIS & NOTHING ELSE.
Farms and ranches would be especially hard hit as land values might not correlate with the value of production. A farm or ranch that could be held for several generations of a family might have been originally purchased at what today would be considered ridiculously cheap amounts. These farms and ranches might be profitable, but only if the land was already paid for and not subject to mortgage payments. Subjecting farms and ranches to taxation based on the lands current market value, might easily cost more than the land could produce.
She bought in 2022. Huge property taxes on the $1.1M sale, many taxes and fees during closing. The following year she got a statement from the county assessor that since increases of property values were less than inflation, the new law (2019?) as applied to Prop 13 limited the reassessment to the lowest percentage between reassessment calculations of increased value and that of increased inflation. So she got a temporary reassessment upwards to 1% or so. This is a tax on unrealized capital gains, as long as she owns and isn't selling.
This year, she got a letter from the assessor that the new law allows adding on the difference between the temporary reassessment percentage and 2% for prior years, to a full 2% this year because increased home values percentage now exceeded the percentage of inflation rate. This accumulation of the last couple years (2022 & 2023) added to 2% allowed her reassessment to be more than 5% this year. I had to reread the letter multiple times and do the calculations to verify. If one were to sell during a property value decline, they can't recover the lost money of unrealized capital gains taxes, having gotten taxed on money they didn't make. County government are crooks, stealing via taxes that are excessive.
Shades of Prima Nochta.
“value of many assets will plunge to $0 because nobody would want them.”
The value of assets would be greatly reduced for sure—as buyers have to take into account the future taxes on appreciation over time.
It heavily increases the risk in any risk vs return calculation—which will particularly penalize potential new startups.
The fine print of the legislation could have bizarre effects.
For example—if fine art were excluded in the definition of assets the prices would skyrocket—if included the prices would plunge.
Needless to say the effect on the stock market would be devastating.
The wealthy folks would hire tax attorneys and rearrange their assets to avoid the tax.
Then .gov will have to go after less wealthy victims to gain the same revenue.
Rinse and repeat—that is the inevitable result.
Everything that is sold to “soak the rich”, ultimately only soaks the middle class.
If the congressroach doesn't officially own the property s/he is in, then too bad. They are still responsible for the tax.
After ten years, they are still affected under the same terms, at double the rate for the general public--for the rest of their lives.
Then we'll see if it still passes.
you have more confidence in the system than I do
the rule of law is out the window
It hasn’t even passed yet. Cart before horse big time.
You mean like property taxes?
Then it should be limited to $3000 in in gains. In short it would be the end of the US Economy. Worse yet if it is not adjusted for inflation that means the Gov could just increase inflation and take everything.
How do people get so dumb to even talk about such Idiocy?
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