Biden Admin Floats Taxing Unrealized Capital Gains
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@jon-nyc said in Biden Admin Floats Taxing Unrealized Capital Gains:
Back to the OP, the unrealized gains won’t pass the senate.
Then why even float the trial balloon?
Because the Resident and his band of merry pronouns have to find money for their multi-trillion dollar bills, without raping the individual American taxpayer. They are desperately seeking something, anything, to keep from increasing individual income taxes and committing political hari-kari.
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Genius
Biden Admin Floats Taxing Unrealized Capital Gains
In search of ways to pay for their massive spending bills that the Biden Administration also assures us somehow cost nothing, Nancy Pelosi and Janet Yellen have floated taxing income that people haven’t actually earned yet.
While currently people only have to pay taxes on the price appreciation of an asset when its sold, the Biden administration wants those on the top to have to pay tax on their unrealized gains too.
It cannot be emphasized enough that this is a tax on something that someone technically doesn’t have yet. If such a tax were implemented affecting everyone, it means that someone who purchased a $200,000 house that went up in value to $250,000 in a year therefore “earned” $50k and would have to pay tax on that as if it were cash income.
There are some obvious questions about how the tax would handle capital losses. For instance, would this tax work in both directions, where if someone had an unrealized capital loss in a particular year, the government would be writing billionaires a check for the difference (which would be their loss multiplied by their tax rate)?
@copper said in Biden Admin Floats Taxing Unrealized Capital Gains:
In search of ways to pay for their massive spending bills that the Biden Administration also assures us somehow cost nothing, Nancy Pelosi and Janet Yellen have floated taxing income that people haven’t actually earned yet.
This gets back to the anti-wealth mentality that many on the left seem comfortable with. The false idea that it's a zero-sum game, "that person has money therefore he's taking it away from me!" Or as in this case, "That person has wealth, even if it's unrealized, therefore that is unfair to others and we should tax them!"
I also agree this would never pass. If it did, it would have ripple effects across the stock market that would tank everyone's 401k. People would look elsewhere to invest their cash.
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@jon-nyc said in Biden Admin Floats Taxing Unrealized Capital Gains:
Yeah that’s my prediction.
Seems the most likely so far. His age might prevent it, but if not... just as in 2016 he'll take advantage of his passionate base compared to a fractured GOP primary stage, and he'll win the votes needed to get the nomination.
He wouldn't win the general election though. Everyone and their mother who wanted Trump to win last time came out and voted for him and he still lost in a landslide. Further, his actions after losing lost him a YUGE chunk of voters who voted for him.
Then again, don't underestimate the ability for Biden to eff up this economy enough... but that is muted anyway since it'll be Harris/Buttigieg or something on the ticket.
I am hoping for a Pence/Haley ticket on the GOP side.
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Seems to me instead of pursuing this they should get rid of the step-up basis. It’s never made any sense and keeps a lot of realized capital gains forever untaxed.
@jon-nyc said in Biden Admin Floats Taxing Unrealized Capital Gains:
Seems to me instead of pursuing this they should get rid of the step-up basis. It’s never made any sense and keeps a lot of realized capital gains forever untaxed.
And the “carried interest” loophole … has that been eliminated yet?
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@jon-nyc said in Biden Admin Floats Taxing Unrealized Capital Gains:
Seems to me instead of pursuing this they should get rid of the step-up basis. It’s never made any sense and keeps a lot of realized capital gains forever untaxed.
And the “carried interest” loophole … has that been eliminated yet?
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My God, next thing you know they'll start requiring non-citizens to pay income tax and social security
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If they tax my unrealized capital gains, can I claim my 7,000 unrealized dependents?
