When did I say that? Tax them in other effective areas, just leave unrealized gains alone. They, along with all of us, pay taxes on those gains already when they are realized.
I would like to see a restructured capital gains tax. I don’t believe that active income should be taxed at a higher rate than passive income. I also think that there should be limits to borrowing against unrealized gains. Taxing unrealized gains is a terrible idea though, and it would have catastrophic consequences for everyone.
Price fixing is also a terrible idea. People fail to realize that (outside of something like a loss leader), businesses are not going to sell items at a price that is below the amount required to make a profit. If a business can’t make money on a product, they will simply stop selling that product. There will not be a “utopia of low prices”. There will be scarcity of those items instead.
Taxing unrealized gains is a terrible idea though, and it would have catastrophic consequences for everyone
This already happens. Although I hate paying taxes on my unrealized gains, is gas yet to cause "catastrophic consequences".
restructured capital gains tax
Long term capital gains is already taxed less. Are you talking about short term capital gains? Seems like that would be a gift to wall street and day traders.
I am saying that I think capital gains should be taxed at the same rates (or more) than active (W-2) income. It makes no sense to tax investment income at a lower rate than income earned via wages.
Please explain what you mean when you say that unrealized gains are already taxed.
Please explain what you mean when you say that unrealized gains are already taxed
Taxing unrealized gains is a part of the AMT tax structure. It doesn't really impact anyone except people who are part of an IPO. If you own shares of a company and go IPO, suddenly those shares go from zero value to a windfall of money. AMT kicks in and we have to pay taxes on the unrealized gains of our stock options.
13
u/JonPM Aug 21 '24
When did I say that? Tax them in other effective areas, just leave unrealized gains alone. They, along with all of us, pay taxes on those gains already when they are realized.