Should there be a tax on unrealized capital gains?

[scheal]

This could certainly come into play if Dems win in Nov

This is bad news no matter what way you look at it. The fact you are even taxed on money you invested after already being taxed is wrong.

https://www.cnbc.com/2019/04/03/what...n-for-you.html

“Everyone needs to pay their fair share and the best approach to achieving that goal is a mark-to-market system that would require the wealthy to pay taxes on their gains every year at the same rates all other income is taxed,” Wyden said in a statement.

He said that he would soon release a white paper outlining how this plan would work.

Principal residences and holdings in 401(k) plans apparently would be excluded.

Tax policy experts noted that while it’s early days, implementing a mark-to-market system on brokerage accounts, real estate and other holdings might be easier said than done.

“The elements of valuation and having the liquidity to pay the tax are much larger hurdles when you think about the retail investor,” said Steven M. Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center.

https://www.marketwatch.com/story/th...lem-2020-03-04

Taxes on capital gains in the U.S. are currently collected only when gains are booked through sales or other realization events. This limitation has been criticized by liberal politicians such as Sen. Ron Wyden (D-Ore.), the ranking Democrat on the Senate Finance Committee, for allowing wealthy taxpayers to "pay what they want, when they want and sometimes nothing at all."

To promote discussion of possible solutions among Democratic candidates for president, Wyden has published adraft proposal to tax the unrealized capital gains of the wealthiest Americans on a yearly basis.

Yet the Wyden proposal is extremely complex, with many important questions left unanswered. The proposal also would likely have adverse economic effects — forcing some investors to liquidate assets in boom times and pushing more businesses out of the public markets.

The Wyden proposal contains two new systems for taxing unrealized capital gains — one for tradable assets and the other for non-tradable assets.

The first issue: What exactly is meant by “tradable assets”? Of course, tradable assets include stocks, bonds and ETFs traded on stock exchanges; and they would also seem to include gold, many commodities and most cryptocurrencies including bitcoin. Would tradable assets also include certain collectibles, such as jewelry and art works, since some of these have values that are readily ascertained? Conversely, would illiquid bonds in local currencies of emerging markets count as tradable assets, even though no prices are posted except upon request?

[wincel]

please god no

[Suit]

Communists want more money.

More news at 11.

[Skezo]

DOW 10k inc.

[401Delta]

No, fukk, no.

Stocks prices go up and down, so you could potentially end up paying tax every year on a losing investment if you sell it when the market is low.

This would be a terrible idea.

[Abzu]

Absolutely not, how are you going to tax something that has not yet been made?

[Stizzel]

All taxes are theft, but stealing from money you havent even made yet is a new level of evil

[sandaltan]

no and this will never happen

[sandaltan]

All taxes are theft, but stealing from money you havent even made yet is a new level of evil

if all taxes are theft then i hope you literally never drive on a road or use the internet

oh wait

youre dumb

[Mr Beer]

No, there should not be a tax on unrealised gains.

[wincel]

if all taxes are theft then i hope you literally never drive on a road or use the internet

oh wait

youre dumb

I mean...It is still theft. They COULD have had private roads. Technically, the only reason u have to pay taxes is because an armed group of goons with guns made it so and threaten to imprison you if you don't. It may be a part of society, and it may benefit it, but really, the government IS basically one giant mafia. Sadly, we need these mafias to protect us and maintain order because our society is full of retards.

[Stizzel]

if all taxes are theft then i hope you literally never drive on a road or use the internet

oh wait

youre dumb

Why wouldnt i use the things my stolen money paid for, retard?

[LeftistGent]

As left as I am, even I wouldn't support this because it's poorly thought out. Some kind of wealth tax or wall street speculation tax is much better.

[DuracellBunny]

This is the equivalent of taxing gamblers on the value of their potential winnings, before finding out if they have won or not.

[gluon]

No, fukk, no.

Stocks prices go up and down, so you could potentially end up paying tax every year on a losing investment if you sell it when the market is low.

This would be a terrible idea.

yep whichever Dem thought of this is a fkin moron and lacks the even most basic understanding of how investing works

[monty097]

There shouldn't even be a tax on realized capital gains.

[gregxy]

The less money that flows through the government the better.
People seldom make good decisions with other peoples money

[TLTrooper]

So you get taxed on the money you made. Then you get taxed on the gains you haven't even realized.

Then you get taxed a 3rd time when you DO realize the gains?

ON TOP OF THAT.. they can manipulate the PPS through the handful of schemes already at play?

[gachase21]

Anyone that purposes or supports this should banished and their citizenship revoked.

[Lefticle]

please god no

no and this will never happen

As left as I am, even I wouldn't support this because it's poorly thought out. Some kind of wealth tax or wall street speculation tax is much better.

Democrats want this and you idiots continue to vote for them.

[Audioslave]

While there are a small few people who might be using unrealized gains as a way to avoid other taxes, an unrealized gains tax on everyone doesn't make any sense.

[128]

Democrats want this and you idiots continue to vote for them.

They never learn until it's too late

[Abzu]

While there are a small few people who might be using unrealized gains as a way to avoid other taxes, an unrealized gains tax on everyone doesn't make any sense.

I use "unrealized" money in a similar way, it makes me look poorer than I am

[Jasonw1178]

What a stupid idea. What a way to crash the economy.

How about we start taxing handouts as income?

Welfare mom sees that she will get $500 a month but when she see's her SNAP balance it's only $350 after tax.... equality.
She gets $600/mo child support, but it's only $400 after tax.

[IronProdigy]

What a stupid idea. What a way to crash the economy.

How about we start taxing handouts as income?

Welfare mom sees that she will get $500 a month but when she see's her SNAP balance it's only $350 after tax.... equality.
She gets $600/mo child support, but it's only $400 after tax.

Doesn't matter about handouts. They'll just increase benefits to her and then tax it to make her feel like she's a contributing member. That actually might be something the left will try to do.

[ltsOgre]

The poor pay a higher percentage of their income as tax than the rich after factoring deductions and payroll taxes, so yes.

[Godfrd824]

The poor pay a higher percentage of their income as tax than the rich after factoring deductions and payroll taxes, so yes.

They can just make more money.

[Mr Beer]

It would cause problems with investments into illiquid assets. An example of why this might be a problem is that infrastructure projects are often extremely illiquid. Encouraging people not to invest in infrastructure hurts everyone.

[rampagefc77]

if all taxes are theft then i hope you literally never drive on a road or use the internet

oh wait

youre dumb

Roads are symbols of systemic racism! Defund the roads! Tear down old roads!

Am I doing it right?

[IH8RICE]

Absolutely not, how are you going to tax something that has not yet been made?

Agreed. Something like this won’t ever pass. Of note since you’re trying to get the average American riled up for no reason,

-this clearly will only affect the wealthiest in the land. Anyone( which means most) under a certain wealth threshold wouldn’t even have to worry about it.