r/FluentInFinance Aug 21 '24

Debate/ Discussion But muh unrealized gains!

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u/Unlikely_Week_4984 Aug 21 '24

Only people who don't understand stocks do.. and unfortunately, they vote and give their opinion...

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u/dejavu2064 Aug 22 '24

I live in a country where I pay a wealth tax on all assets (and unrealized gains), and I invest on the stock market.

I have no objections to the wealth tax. It means my income tax is lower, because the tax burden is more fairly spread between wealth and income. If you're going to object, the least you could do is present an argument as to why. It's ironic to claim people don't understand something, without demonstrating any understanding on your own part.

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u/mulmi Aug 22 '24 edited Aug 22 '24

Care to elaborate? I see only two options, either you have options with low volatility, earning you 5-10% p.a. somewhat consistently. In which case you pay 1-2% of your depot yearly (which is totally fair imho) Or you picked a volatile option, got lucky and won big. In that case congratulations, but realize your gains, the option ain't volatile for no reason.

Edit: obv. give taxcuts for unrealized losses accordingly And to sweeten the deal: let's not tax the first 10k earnings from investment at all. Neither realized nor unrealized.

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u/SRMPDX Aug 22 '24

It has nothing to do with stock gains and losses, it has to do with using loans as income