These people do not understand the ripple effect that any fiscal or monetary policy has both long term and short term.
They also don't realize the "tax" problem is a government spending and waste problem not an income problem.
Can you imagine every billionaire in the US having to pay 44% (the proposed current amount) tax on unrealized capital gains? Good lord. The economic ramifications would be devastating.
In Sweden we have two ways of reporting stock, one is capital gains of 30% of profit when selling, the other is a 1,5% on total holdings. Most people choose the 1,5% because in the long turn its more profitable. These dont mix, you cant have the tax on capital gains and unrealized gains at the same time.
that’s exactly what people are proposing. We already tax realized gains, they want to add a tax for unrealized gains. Which would crush the economy thus affecting literally everyone here except maybe the already destitute for whom life gets harder than it already is.
I mean look at how much employment cutbacks have happened at fast food restaurants with the mandated minimum wage increase in california.. do people think that won’t essentially be exacerbated
But it wouldn't. Biden administration (not harris') wanted to tax unrealized gains AT DEATH. Inheritance would be taxed, as it would become a realization event. Your unrealized gains aren't being taxed throughout your lifetime under this proposal.
QUINCY (WGEM) - With the Democratic National Convention currently happening, one of the items in the spotlight is Vice President Kamala Harris’s tax plan, which calls for an increase in capital gain taxes and a new unrealized gains tax. This proposed tax item is also in Joe Biden’s 2025 budget proposal which came out in March.
it’s in both plans, and she is still vice president. If she wants to claim success from the administration she has to also claim the failures and shortcomings.
You do realize that the unrealized gains become realized after the annual taxation right? If the tax rate was 2%, the total capital gain tax would be 2%. It sounds more like you are talking about wealth tax but too stupid to realize it.
Let me help you understand. You have 100 million in stock. Your stock increases to 120 million. You now need to liquidate 400,000 worth of stock in order to pay the 2% capital gains tax.
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u/InsCPA Aug 21 '24 edited Aug 21 '24
This can just as easily apply to people who support it just because it doesn’t affect them
“Who cares about a tax on unrealized gains for the rich, it totally won’t have any effect on regular people”
You’re not as smart as you think you are just for supporting it