Not sure if an unrealized gains tax is the best solution, but there has to be some kind of legitimate enforcement of taxation on wealthy people. It doesn’t make sense that wealthy people can simultaneously not pay taxes on unrealized gains, but also realize their gains through loans against their assets. You can’t have it both ways.
Taxing unrealized gains is monumentally stupid. It would make more sense to tax a loan against unrealized gains. What happens when the stock market goes down, is the Federal Government going to compensate the unrealized losses? Any such policy would be catastrophic to investment markets and the economy.
@@jumboshrimps4498 I do not think no one says they do not pay taxes. Even Biden said they pay 8.2%. The question is how they use loopholes in the law to not pay taxes on their wealth.
It’s about defending the principle, not specific individuals. Most conservatives believe that ambition plus voluntary effort leads to success. It would be hypocritical to demand, “Tax the rich!” while excluding ourselves from that equation.
My brother in Marx, Oprah and Rihanna don’t even crack into the top 1000 wealthiest people on the planet. Obviously they’re going to exemplify with the richest of the stupidly rich.
@ all the rich shareholders of stocks, bonds, crypto etc. will borrow against their assets at very low rates to avoid paying taxes. 2% rate on 500m is a lot cheaper than 20%. If the shares go up in value that 2% is not for them to pay. The government gets a 10% fee (tax) on that loan so this way the wealthy pay a fair tax. There are government fees on cell service, cable service etc. why not on securities loans. They are only doing it to avoid paying taxes.
This will never happen since loans aren't considered income. That's why they aren't taxed. Borrowed money isn't taxed by the government. So, they can borrow against their assets whenever they want to avoid taxation. This is legal. @@mack-uv6gn
We have this tax in Norway, a wealth tax, many rich people have said this is the reason they are moving abroad, but in reality the amount they pay is argueably inconsequentially small and many rich people stay. If their wealth decreases, they are also able to get refunds as mentioned in the video. Outwardly it is culturally seen as greedy to move abroad for this reason, and internaly it is seen as embarassing to apparently not be rich enough to pay this tax.
Norway is a terrible model for literally anyone to emulate. You're an oil country rich off a sovereign wealth fund. If you count exports, you've probably done more damage to the planet per capita than any other country on Earth.
The amount is not small and in Norway the wealth tax has such a low threshold that even middle or upper middle class people pay it, and we cant just pick up and move. They should at least exempt your primary residence. The wealth tax is stupid and one of the many stupid taxes we have that need to be abolished. Vote FRP 🇳🇴
@@theactivecoconut6077 wow they included your primary residence as part of the tax? So your residence is double taxed? Property tax, and wealth tax on one primary residence?
It's small for unproductive rich people who wanna live off their gains, big punch for those that are still productive entrepreneurs that still makes use of their fortune to create companies, or something productive to society, also we're talking about money, wherever your money isn't welcome there'll always be another country where it will be, so it is a waste of time and efforts trying to tax billionaires, they are the best marketing tool a country has to show a reason for people to immigrate, dreaming....
They aren't sending money to ukraine. They are sending arms and ammo manufactured in us paid using the tax money. So the money is flowing back to us industries
@@sethgerwitz That has nothing to do with it. And Harris has way more Billionairs backing her compared to Trump. For example Bill Gates, Mark Cuban, George Soros etc. Also many large corporations support Harris
@@Brianuwu622 Trump won in 2016 because he gained support from the white working class. He flipped voters in the rust belt and counties with some of the worst poverty and unemployment rate in the country. Wall street, silicon valley, Hollywood, academia, and most of the "elite" segments of American society back the Democrats.
Capital gains tax will hurt retirement accounts and retail investors more than billionaires. Also, if unrealized gains are taxed, then we need to stop taxing realized gains, otherwise the government is double dipping and there will be NO incentive for anyone to put their money in the market. Why would I fund a new business if there's no reward? I could just put all my assets into gold and bury it in the yard (maybe not a bad idea right now?) To those who say "they're not doing anything to deserve that money" etc, these accounts are funding the growth of business by investing. It's this giant behemoth of money pushed into new and expanding businesses that allows more resources, more jobs, more opportunities. The big players will always be able to cut through red tape, it's the little folks that suffer. If we want consumer power, there should be more standardized costs for labor.
Do you own a home? Do you own a car? Do you own own stock under your retirement fund? The question people are worried about is not the bracket of which these taxes occur but how easy they will extend this in the future once it becomes law.
@@BreakMyPlate say it again! lol people don’t understand the implications of taxing unrealized capital gains and if they did they would immediately see just how preposterous of an idea it is
@@bjk837 it’s more preposterous that one individual can be worth billions, trillions of dollars. These numbers are inconceivable. Something has to be done to prevent hoarding wealth at these high levels. People don’t realize that the country could be doing so much better off if rich people weren’t allowed to run wild. There was a study that showed a number of corporations could have paid all of their employees $30,000 individually, in lieu of paying bonuses to executives. People talk about cost of living, that’s your cost of living right there, going into some millionaires pocket. Imagine if a worker at Home Depot got a $30,000 raise and could actually afford a house and groceries. Look up stock buy back report by “center on budget and policy priorities”
@WatchinVidz no…people that work hard and build great companies where people across the world voluntarily give them money in return for the goods and/or services that they provide DESERVE to be worth what WE as the people consuming those goods make them worth. And if that’s billions and or trillions, they in no way should be villainized for it. And you fail to realize that inflation caused by rampant government spending is the reason people can’t afford a decent living. Not the “billionaires and trillionaires” and their bonuses. And if you don’t understand that concept then of course you’ll go on thinking that higher taxation to bring in a few extra billion will somehow fix the problem of rampant government spending by the trillions. And another thing, when you say “worth billions” you do realize that that’s not money in the bank right? Like it’s in asset valuation which is completely valued by the market, be it real estate, stocks, etc. The market meaning you and me.
@@idea1istic What do you think those billionares are gonna do? THEYRE GONNA LEAVE AMERICA. They're gonna all move to Mexico and China. ALL our jobs will be gone.
Pretty much every single ultra wealthy americsn who does business in america would be against this policy. Rather than biillionaires though this would affect working class americans even more
unrealized gains tax is completely stupid given how volatile certain stocks are and how certain assets are almost impossible to pinpoint on it's real value. just close the buy borrow die strategy by making all your assets realize the capital gains upon death. people pay their taxes on these realized gains upon their death before their heirs gets their inheritance.
Uhm it is their cus billionares take loans on stocks as collateral and therefore dont pay taxes. This closes that loophole. Balances the budget and leaveas enough extra money to expand healthcare and education
@@krisshnapeswanipeswani3190 The money collected from billionaires (some $502 billion) won't even cover 1% of the interest on the national debt let alone balance the budge. You must be another low-educated Harris voter. Delusional. Absolutely delusional.
@@j887276 Because smart people know once Harris runs out of money from the rich-elite then she is coming after the upper, middle and lower classes next!
Frankly that would be unconstitutional. It's not obvious with a diversified stock portfolio, but you wouldn't force someone to sell their parents art collection. But even more important if say a majority stakeholder dies, say Elon Musk and everybody would know that all of his stocks will flood the market and given some shenanigans a group of investors may prevent the heir apparent to gain control of the company as it would have happened if the stock would have just passed on.
@@Dear_Mr._Isaiah_Deringerseriously, exactly how is it unconstitutional? What clause is being violated when congress is explicitly given the right to raise taxes?
Nope, "realizing" is a technical term. It means the gains or losses that happen at the point of sale. When you borrow against an asset you aren't selling it. You are basically giving the bank the permission to seize the asset should you fail to abide by the terms of the loan. Since there's no sale happening, there isn't a "realizing". Same reason why taking out a HELOC doesn't create a realized gains tax. You didn't sell your home, you didn't have any new income generated. So why should you face the tax?
You cannot reject a tax on unrealised gains & yet use those gains to borrow loans against them & build more wealth in the process You can't have it both ways.... You want to borrow against your net worth, sure, then allow a tax against it.... Simple
I will never get tired of writing this: I once saw this image that said that if someone lived for 80 years and earned an average of $5,000.00 every day of their life, they still wouldn't be a billionaire, but rather have about $150,000,000.00. At the bottom of the image was a line that said that no one works to become a billionaire. So yeah, we should be taxing multi millionaire and billionaire individuals and corporations in this country more then we currently are!
Tom Cook of Apple has been given over $80M per year in compensation for the last 2 years. IF he “worked” a 6 day work week 50 weeks out of the year, that would be over $260,000 per day. With 160,000 Apple employees, Tim Cook is taking $500 per employee. If you and each of your friends & family would like to each send me a $500 check annually, I’ll gladly donate 50% of those checks to the federal treasury to pay towards the debt (helping all citizens and our descendants.)
500 billion over ten years, 50 billion a year, is nothing. It’s an absolutely inconsequential amount of money compared to Federal spending. It might be more fair, but it is not the solution to wealth inequality, the federal deficit, inflation, or anything else that plagues our nation. And it will dredge up a whole lot of other problems as well, such as mass selling of shares, which destabilizes the stock market. This plan is half baked at best, and absolute disaster at worst, and it doesn’t prevent the loopholes that allow billionaires to put off paying taxes in the first place.
I’m an outsider to American politics, but here’s my perspective: Trump has always been outspoken, often unwilling to compromise. His goal has consistently appeared to be improving the U.S. economy. Even in the 1980s, he criticized trade practices, particularly Japan’s economic gains at the expense of the U.S., telling Larry King, 'This has to stop. We can’t keep running a trade deficit.' His message has remained similar over the years: America needs a stronger position in global trade. Trump has substance in his arguments, though his approach can be abrasive, often using shock value to make his point. Yet, his intent has never seemed malicious. On the other hand, Democrats have demonstrated a strong organizational machine, able to navigate and leverage the political system effectively. This includes rallying around candidates, even those who might not seem ideal, with a unified strategy. Republicans, after having four years to address concerns about election fraud, still find themselves facing similar questions. From an outsider’s view, it seems they may miss an opportunity again, as Democrats are relentless in managing the fine details that push initiatives forward. The “Make America Great Again” concept is powerful, but Republicans often focus on broad strokes and can overlook the importance of detailed follow-through. Democrats’ meticulous attention to every step in the process is one of the reasons they maintain an edge in these battles. Going forward, Republicans may benefit from focusing on these details to turn their big-picture ideas into lasting policies. The world would love to see Trump win. But … Democrats is just more superior in manufacturing something out of NOTHING. This is not a fair fight.
Somethings got to be done about the state of western public finances. The wealth is going somewhere. The wealth of the super rich has recently increased at unprecedented rates, yet states are increasingly indebted.
I like how tax policy expands to "normal" people. Income tax in the USA was originally for the rich, but expanded to everyone. We need to fix the economy, so we need to take more money from everyone. If we start with the rich, people will think its fair.
Why does the government need an extra $50 billion per year? What is it going to use that money for? The government already wasted so much money, while billionaires don’t exactly stuff this money into their mattresses. They provide investments to new companies, hire workers, start businesses, etc. I question the value of giving an extra $50 billion to the government…
I am a capitalist who hates government but logically what I would like to ask is if you can tax people on the value of their home (which is their balance sheet equity and also captures unrealised capital gains) through property taxes then why can you tax people's equity portfolios and paper assets. If you are logically allowed to tax someone on the unrealised value of someone's home then why cant you tax the value of their stocks, bonds, mutual funds and others (NON-PENSION RELATED). Why are houses taxed but paper portfolios which are easier to partially liquidate not taxed?
It does make sense that property requires local physical resources: roads, fire, police, and basic city services. A home suggests the need for additional services like education, elderly, public health, etc. The real leverage is that capital can be leveraged with other capital to purchase more capital … and THEN, with ownership of rentals, corporations, property, manufacturing businesses, etc, owners, stockholders, board members, and executives can gift themselves ever increasing rent, dividends, stock buybacks, stock options, bonuses, and (just for show) some “income” while others do all the work. Corporate revenue, stock options, stock buybacks, dividends, golden parachutes, rent, and all the more elaborate schemes for siphoning wealth (Eg Healthcare private equity robber barons 🤑, financial instruments, Trump-like pretend company games) should all be either taxed and not allowed to be written off or hidden from taxes. Oh, and near zero inheritance tax is a boondoggle, too-and also detrimental to equality in our country’s future.
Those are taxes for local municipal services which directly influence your property values. For example a place without a fire service would tank the homes value
@@johnsamuel1999 But many places don’t have high property taxes, they can still provide ample public services and housing price is high, e.g. California
funny thing is in germany they had a tax on unrealised gains. The highest court canceled it because it was not fair compared to house owners. You could put your money in a house and would not need to pay the tax, but it is also an investment just like stock. It was considered unfair so it never got back.
The problem is the step up law that wipes out the capital gains liability on inheritance. Here in Aus, if you inherit assets, you also inherit the associated capital gains tax liability. This stops the loophole of borrowing against assets and having your beneficiaries pay off the loan when you die and pay no tax
The tax has to be on NAV, net asset value. That would remove complications. Of course taxing illiquid assets would be a challenge. Like paintings, vintage cars, memorabilia, antiques and of course jewelry and ornament. I really do not see much impact on liquid assets like securities and bonds. As US capital markets are really efficient. But when you say top 0.1% what do you mean ? It would be really challenge to identify the top 0.1%. Identifying people like Elon Musk and Mr. Jeff Bezos or the large tech magnates is easy. But when you get down the ladder it could be challenging. Let us see how this unfolds.
Remove real estate loss deduction for so called real estate professionals, remove 1031 exchange - you'll have enough additional tax plus real estate will be more affordable
an unrealized capital gains tax is a nightmare to implement and enforce. Even the current capital gains tax is a big mess with so many ways to cheat it. The fairest and easiest taxes are head taxes, property taxes (by area not value), and tolls/tariffs. Sales taxes and income taxes are bad taxes because they discourage good behavior (working and consuming) and they have to be enforced by a third party (employers and retailers).
All I could see this doing is affecting the market negatively. Taxing unrealized gains would mean those billionaires will be selling their company holdings to pay taxes, which would cause the stock to go down, which affects everyday shareholders. This sounds like a tax that doesn’t solve anything.
And you know this cause you are an expert or you read this on zfox news. It’s crazy how the right has convinced avg Joe that it’s better for everyone to have billionaires pay no taxes
how about a scenario where a billionaire has a made 5 billion and paid 1 billion in capital gain taxes, in some unforeseen scenario the company tanks like many of these high value EV stocks that then eventually tank, now the stock is worth 0 but now the IRS owes him a billion dollars. How can you even have a federal budget with that kind of fluctuation.
Would make more sense to propose a choice to be taxed by issuing a personal bond to the individual. Call it a $100M loan that gets forgiven in part each year by the amount of capital gains realized. It would of course need to pay a competitive coupon.
Income tax started at only 3% for the wealthy and now we all have to pay. Taxing unrealized gains NOW is only targeted to the wealthy however..... history doesn't repeat but it rhymes
Income taxes are only paid by the top half of incomes and they support far more infrastructure and public services than we used to have as an agrarian culture. Times change. Not to mention that dems are the only ones looking to lower the tax burden for working people.
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They should be allowed to give payment in kind for shares. Up to taxpayer, pay in cash, or transfer ownership of shares of equivalent value. That way the share price would not come crashing down. This way the government would turn into a minority share holder just like so many sovereign funds such as Norway and Singapore. Just limit how much the government can own per company, majority government owned companies tend to become very inefficient.
The median wealth of the 0.1% is 150 million per household. I understand why taxes on wealth is difficult idea to implement, however, if you think this will effect the average American you are unable to have this conversation, go back to the kids table and let the adults talk.
What happens if the values fall? If you tax me because of value in a stock appreciation, then that stock price goes down, what happens? Do you give me a refund?
Taxing the rich is OK, but lets not pretend the government needs their dollars in order to spend. Dollars come from the government, not rich people. No, nothing you learn about bank lending, the treasury, the FED, or securities changes that fact.
The problem is not wealthy aren't paying their fair share of taxes. the top 10% already pay 76% of the total taxes. One could argue, the gross collected taxes are in effect lower than where the govt. wants them to be at, but taxing them more would mean their contribution to the tax coffers would be pushing it close to a 100% (especially with the monumentally stupid unrealized gains tax). Why wouldn't a billionaire simply move their assets via the entity they control elsewhere where they get a much better tax advantage. You think there aren't other countries that shell out citizenships for $?
Let's look at the top 0.1%. The top 0.1% have an extremely outsized amount of the wealth in the US. They own more than the bottom 50% of America by a factor of 5! Taxing their unrealized gains and property is not going to substantially harm them. Top 0.1% wealth: 20.87 Trillion Bottom 50%: 3.82 Trillion This has increased from 1990 where the difference in wealth was a factor of under 3 compared to the bottom 50%. (1.8 Trillion vs. 0.73 Trillion)
@@Winner5zero4 Is there a reason to distrust the data provided by the agency that collects income tax? With the highly progressive individual income tax system the US has, this is the expected outcome. This has been consistent for the past 30 years or so, across several different administrations with many tax tweaks along the way. You can easily find the number by searching for the terms: individual income tax returns by agi percentile.
Stop saying they as if this doesn’t apply for everyone it’s not our fault that people aren’t savvy on the game called capitalism in the United States. Everything billionaires do with taxes and acquiring wealth can be done by regular people if u know how to play the game.
Increasing tax is never a solution because the wealthy will always find a way to lower that tax no matter what. These "loop holes" are not actual "loop holes" because they are actually designed to protect the lower income people, but it gets used by the wealthy. Then, the middle income people start to pay for this tax because they will have to lower the threshold to increase tax collection. Middle income class becomes devastated as they are not wealthy enough to utilize the "loop holes," and congratulations except for politicians and mega-wealthy families, you essentially created complete low income class society. This is how socialism starts and into Orwell's Animal Farm.
China and the ultra wealthy are becoming more powerful. We as a country, need to make sure that our military and technology continues to advance. I don't see a problem taxing the ultra wealthy. That's just my take
That’s why billionaires are fighting tooth and nail and they got poor Americas to vote for billionaires like you know if they worked for trump they would hate it😭
The WSJ makes the stupidest and most confusing analogy to confuse the issue. Big surprise. Here's the analogy. You, an everyday American in the bottom 80%, buys a house. This is the majority of the collective wealth of most Americans. As the value of that house increases, you pay more in taxes on the house. Your wealth has increased, so you pay more in taxes. Wouldn't everyone like to pay the property taxes that they paid 30 years ago? If you're wealthy, though, you have wealth beyond just your house. If you're wealthy, you don't pay taxes on this accumulated wealth like everyone else does. Taxing unrealized capital gains is nothing more than asking the wealthy to follow the same rules that everyone else has to follow and pay their fair share.
Oh this is cute. It's not enough that they tax your income, your investments, and everything you buy. Now they have to tax the things you already own that you payed tax on when you bought it, with money that was taxed when you earned it. Before you say it's only for billionaires, open a history book. This is how they sold people on income tax, and capital gains tax. They ALWAYS say "We're going to make those billionaires pay their fair share" then in 10 years the billionaires find a way out of it and the tax has been applied to all the poor people too. $500 billion over 10 years, so $50 billion per year. I am absolutely convinced that the us government could save way more by identifying and eliminating wasteful spending. The government would also take in way more money if Americans would demand that their stuff be made in America by people making decent wages, and not buy things that aren't. But that takes effort, and sacrifice. Inventing a new type of tax does not.
Just create legislation for a ultra wealthy death tax. Once assets of 100 million or more are distributed to the heirs of said deceased person that should constitute a "taxable transaction" where those assets unrealized gains become realized and taxed. Also create a stock compensation tax for wealthy earners. Say stock compensation of 2.5 million or more in a single year has an income tax of 20%. You could also add a payroll tax on the company side. Unrealized gains is just to hard to use as a metric.
They need to think about stop taxing ppl that don’t have any kids sooooo much…… it’s ridiculous how much they tax ppl that are responsible and not having children without wedlock. How can any man start a family ? Or afford to get married?
In fact the best is Mark Zuch. This year he’s worth 200 billion, but last year it had dropped to 35. What happens if today it shrinks in half? Do you give him a refund?
Easy, don't tax unrealised gain, but make it illegal to trade unrealized gains for anything other than money. This would prevent the exchange of stock for houses, cars, other assets, or stocks.
The democrats don't actually want to solve the problem. They just want to look like they are by proposing outlandish policies that they know will never pass.
I'm not against higher taxes as long as those taxes go to help the American people, not to wage more illegal wars and to gift billions to the likes of Israel.
Income is defined as receipt of currency that is readily acceptable in commerce. Stocks and other assets aren't in that category as you can't exchange stocks for food at the supermarket and hence are not defined as income.
This may be an ignorant comment, but comes from not having the information. What happens if you get taxed on the unrealized gains because the value of that asset goes up, but then the next few years the value of that asset goes down and lower than when you were taxed on it. Do you get a tax credit? Can someone who understands this better help me out here?
Just stop taxing income. Anyone with a salary isn't someone who needs to pay into the pot. Tax only the wealth and accumulation of it, only the people who are sitting on money and not contributing to society or those who are paid through boons and don't need monetary income.
No one in their right mind would give up 100MM in equity because they have to give up 8MM in taxes - please. The billionaires will find a way and keep on billioning. They will be fine like the rest of us. They will still live in a nation with looser business laws and functional government than any other part of the world. We need to stop this nonsense…
Some politicians use this “bait and switch” tactic to tax ordinary, hardworking and high earning Americans. They first talk about so and so billionaires not paying taxes, then turn around and raise income taxes on high earners, who already pay way more than their fair share. Top 10% tax payers, mostly NOT billionaires, already collectively represent 76%(!) of the aggregate Federal income tax revenues worth $2.2T (source: 2021 IRS data). It is utterly hypocritical for a politician to argue that they need to pay their fair share…
I assume the main institution this is going to hurt is stock exchanges people would be more inclined to go private to evade taxes. the tax itself only targets a handful of people. surely should have a more targeted tax strategy.
isnt using elon musk as an example seriously silly? the guy sells periodically to a point that shifts the entire market and funds another idea that ends up hella successful. seriously guys.
If you punish high earners, they will leave, then low earners will then be taxed out the wazoo. “Unforeseen effects” seem apparent. It doesn’t make sense to punish the people who have been more effective in business and work to promote general economy. When they leave the system, it’ll remove the barrier to the low income earners who are left in the system, who then are punished by higher taxes eventually and anyway. Better economic policies that promote all general industries can lead to an ability to lower taxes across the board. If there is more money moving in a productive economy, with a higher frequency of tax(due to more consumer spending) but at a lower rate, it unburdens the average person. Don’t aim to make more taxes, eventually it causes overtaxation on everyone if you allow it. Rather aim to promote general economy through smart policy that endorses good earners. “Dig a hole for a man and you find you are in the hole with him” ; if low income earners dig the hole that tax the high earners, when the high earners leave, who is left to be taxed; The low income earners, who surely will then be taxed. It’s the creep, and it’s unsustainable. Because if you just allow increasing taxes, rather than promoting general industry and more money in the economy in relation to the policy you are voting for, eventually everyone will be taxed out the wazoo. Look towards policy that promotes general economic growth. It’s the only solution. Who would ever vote for more taxes? Doesn’t make sense to me… best wishes.
Forgive me for making this so simple, but why not just tax loans that they take out against their assets? They are eating off of their unrealized gains by taking those loans
Solution is very simple. No tax as long as you dont use the wealth. tax if you use the wealth. You want to borrow and put untaxed wealth as collateral ? thats great please also pay your capital gains whilst you are at it. Elon Musk wants to borrow 5 billion using tesla stock as collateral ? thats great kindly pay capital gains tax on the 5 billion worth of collateral you are putting in. This measure will also prevent fire sales of billionaires which could lead into assets meltdown.
She won’t do it, wealth taxes are dumb and impossible to implement effectively. Property taxes are kinda like unrealized capital gains tax, but these are really easy to implement.
Small taxes can affect investment decisions such as whether to choose tax-free municipal bonds over taxable bonds or do a Roth IRA conversion. I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this without being taxed twice?
Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.
Bill gates donated 50 million to her campaign. The reason why billionaires support this tax is because it doesn't work, go look at France. It's just a distraction.
@MarkZuuka not every billionaire like the ones you mention are upset with paying more in taxes. Many good billionaires are in philanthropy and job growth.
yeah so, and those billionaires you just mentioned are not opposed to paying higher taxes. Obama, by the way is not a billionaire; the Obama's latest estimated net worth is around 70 million.
How the election results will raise or lower your taxes: on.wsj.com/3YLyU4t
Not sure if an unrealized gains tax is the best solution, but there has to be some kind of legitimate enforcement of taxation on wealthy people. It doesn’t make sense that wealthy people can simultaneously not pay taxes on unrealized gains, but also realize their gains through loans against their assets. You can’t have it both ways.
Taxing unrealized gains is monumentally stupid. It would make more sense to tax a loan against unrealized gains. What happens when the stock market goes down, is the Federal Government going to compensate the unrealized losses? Any such policy would be catastrophic to investment markets and the economy.
They do pay taxes. If they're not then they go to jail. This claim makes no logical sense. Politicians are lying to you.
Simply true.
one could tax loans taken against unrealized assets
@@jumboshrimps4498 I do not think no one says they do not pay taxes. Even Biden said they pay 8.2%. The question is how they use loopholes in the law to not pay taxes on their wealth.
Crazy that a bunch of non billionaires are defending them 😂😂😂😂😂😂
Buncha sheeps
Crazy cause WSJ is owned by a billionaire 😱
It’s about defending the principle, not specific individuals. Most conservatives believe that ambition plus voluntary effort leads to success. It would be hypocritical to demand, “Tax the rich!” while excluding ourselves from that equation.
Yeah it is. It should tell you how dangerous another Trump term would be.
@@ericlee5638 but it’s not hypocritical because we non billionaires pay our fair share in taxes.
I love how WSJ's idea of "billionaires" are always Zuckerberg, Musk, and Bezos. They never post pictures of Oprah Winfrey or Rihanna.
Neither of which are billionaires.
Inventors / innovators vs Showmen .... One of these actually push the society forward while the other just entertain them
@@aenorist2431 Oprah worth 2.5B Rhianna 1.4B
Elong is worth about 150 Rihannas
My brother in Marx, Oprah and Rihanna don’t even crack into the top 1000 wealthiest people on the planet. Obviously they’re going to exemplify with the richest of the stupidly rich.
Why doesn’t she just ban using unrealized gains as assets to obtain loans on? That’s the crux of the issue here.
So no more home equity loans for the middle class ?
@@tmgclips5300maybe only if you borrow more than 10 million in a year, or primary residences excluded.
@@nibpicky much easier to just tax the loans themselves
@@tmgclips5300 I think this plan just applies to people worth over 100M. Are yo that well off? Is anyone posting here worth over 100M?
Because loans are banks products. See that's the thing about Kommunist Prez. Garbage in Garbage out!!
Charge a 10% fee on loans against assets for people with 100m or more. They borrow against their assets so they don’t have to pay taxes.
😂 you do know what effect a interest rate has, right?
@Joey-ct8bm what do u mean?
@ all the rich shareholders of stocks, bonds, crypto etc. will borrow against their assets at very low rates to avoid paying taxes. 2% rate on 500m is a lot cheaper than 20%. If the shares go up in value that 2% is not for them to pay. The government gets a 10% fee (tax) on that loan so this way the wealthy pay a fair tax. There are government fees on cell service, cable service etc. why not on securities loans. They are only doing it to avoid paying taxes.
@ and
This will never happen since loans aren't considered income. That's why they aren't taxed. Borrowed money isn't taxed by the government. So, they can borrow against their assets whenever they want to avoid taxation. This is legal. @@mack-uv6gn
We have this tax in Norway, a wealth tax, many rich people have said this is the reason they are moving abroad, but in reality the amount they pay is argueably inconsequentially small and many rich people stay. If their wealth decreases, they are also able to get refunds as mentioned in the video. Outwardly it is culturally seen as greedy to move abroad for this reason, and internaly it is seen as embarassing to apparently not be rich enough to pay this tax.
Norway is a terrible model for literally anyone to emulate. You're an oil country rich off a sovereign wealth fund. If you count exports, you've probably done more damage to the planet per capita than any other country on Earth.
The amount is not small and in Norway the wealth tax has such a low threshold that even middle or upper middle class people pay it, and we cant just pick up and move. They should at least exempt your primary residence. The wealth tax is stupid and one of the many stupid taxes we have that need to be abolished. Vote FRP 🇳🇴
@@theactivecoconut6077 wow they included your primary residence as part of the tax? So your residence is double taxed?
Property tax, and wealth tax on one primary residence?
It's small for unproductive rich people who wanna live off their gains, big punch for those that are still productive entrepreneurs that still makes use of their fortune to create companies, or something productive to society, also we're talking about money, wherever your money isn't welcome there'll always be another country where it will be, so it is a waste of time and efforts trying to tax billionaires, they are the best marketing tool a country has to show a reason for people to immigrate, dreaming....
I like it
And this, ladies and gentlemen, is why they don't want her and why they keep on fighting her.
Tax the rich and what? Send to Ukraine?
@@Contractor48 Thats exactly what they want to do. No plans to cut deficit and debt
VP for the past 3.5 years.
Apparently Biden didnt want her crazy ideas either.
They aren't sending money to ukraine. They are sending arms and ammo manufactured in us paid using the tax money. So the money is flowing back to us industries
Why haven’t they been doing this for 4 years?
Now I know why Elon supports Trump🤣🤣🤣
Because Mark Cuban doesnt exist? Weird how you stop being an "e-vile billionaire" the moment you support a Democrat.
@@sethgerwitz That has nothing to do with it. And Harris has way more Billionairs backing her compared to Trump. For example Bill Gates, Mark Cuban, George Soros etc. Also many large corporations support Harris
@@johannesaarto1631maybe because this tax is a loophole and benefits them?!!
anyone that makes money supports trump, ur obviously on food stamps🤣🤣🤣🤣🤣
@@Brianuwu622 Trump won in 2016 because he gained support from the white working class. He flipped voters in the rust belt and counties with some of the worst poverty and unemployment rate in the country. Wall street, silicon valley, Hollywood, academia, and most of the "elite" segments of American society back the Democrats.
Capital gains tax will hurt retirement accounts and retail investors more than billionaires. Also, if unrealized gains are taxed, then we need to stop taxing realized gains, otherwise the government is double dipping and there will be NO incentive for anyone to put their money in the market. Why would I fund a new business if there's no reward? I could just put all my assets into gold and bury it in the yard (maybe not a bad idea right now?)
To those who say "they're not doing anything to deserve that money" etc, these accounts are funding the growth of business by investing. It's this giant behemoth of money pushed into new and expanding businesses that allows more resources, more jobs, more opportunities. The big players will always be able to cut through red tape, it's the little folks that suffer. If we want consumer power, there should be more standardized costs for labor.
Thank you for explaining something I may never personally experience.
But it affects you! This is why billionaires don't pay taxes
Do you own a home? Do you own a car? Do you own own stock under your retirement fund? The question people are worried about is not the bracket of which these taxes occur but how easy they will extend this in the future once it becomes law.
@@BreakMyPlate say it again! lol people don’t understand the implications of taxing unrealized capital gains and if they did they would immediately see just how preposterous of an idea it is
@@bjk837 it’s more preposterous that one individual can be worth billions, trillions of dollars. These numbers are inconceivable. Something has to be done to prevent hoarding wealth at these high levels.
People don’t realize that the country could be doing so much better off if rich people weren’t allowed to run wild.
There was a study that showed a number of corporations could have paid all of their employees $30,000 individually, in lieu of paying bonuses to executives.
People talk about cost of living, that’s your cost of living right there, going into some millionaires pocket.
Imagine if a worker at Home Depot got a $30,000 raise and could actually afford a house and groceries.
Look up stock buy back report by “center on budget and policy priorities”
@WatchinVidz no…people that work hard and build great companies where people across the world voluntarily give them money in return for the goods and/or services that they provide DESERVE to be worth what WE as the people consuming those goods make them worth. And if that’s billions and or trillions, they in no way should be villainized for it.
And you fail to realize that inflation caused by rampant government spending is the reason people can’t afford a decent living. Not the “billionaires and trillionaires” and their bonuses. And if you don’t understand that concept then of course you’ll go on thinking that higher taxation to bring in a few extra billion will somehow fix the problem of rampant government spending by the trillions.
And another thing, when you say “worth billions” you do realize that that’s not money in the bank right? Like it’s in asset valuation which is completely valued by the market, be it real estate, stocks, etc. The market meaning you and me.
Wasn’t mentioned here and it’s hardly ever mentioned but one somewhat of a solution is to fix the death & estate tax and get rid of the step-up basis.
You don't have to be a billionaire simp to understand how absolutely stupid this tax proposal is
Uhm it is not stupid. This is Clinton's strategy that worked
Crazy how dumb they think we are
@@omergeva6141 Crazy how you think you're smart 🤣🤣
Found the bot
You just have to be economically illiterate to think this tax proposal is stupid.
No wonder why Musk is simping for Trump hard.
which is crazy, he'd still be indefinitely loaded beyond belief even if these taxes are implemented.
@@idea1istic What do you think those billionares are gonna do? THEYRE GONNA LEAVE AMERICA. They're gonna all move to Mexico and China. ALL our jobs will be gone.
Duh
And what is Mark Cuban doing?
Pretty much every single ultra wealthy americsn who does business in america would be against this policy. Rather than biillionaires though this would affect working class americans even more
unrealized gains tax is completely stupid given how volatile certain stocks are and how certain assets are almost impossible to pinpoint on it's real value. just close the buy borrow die strategy by making all your assets realize the capital gains upon death. people pay their taxes on these realized gains upon their death before their heirs gets their inheritance.
Uhm it is their cus billionares take loans on stocks as collateral and therefore dont pay taxes. This closes that loophole. Balances the budget and leaveas enough extra money to expand healthcare and education
@@krisshnapeswanipeswani3190 The money collected from billionaires (some $502 billion) won't even cover 1% of the interest on the national debt let alone balance the budge. You must be another low-educated Harris voter. Delusional. Absolutely delusional.
@@j887276 Because smart people know once Harris runs out of money from the rich-elite then she is coming after the upper, middle and lower classes next!
Frankly that would be unconstitutional.
It's not obvious with a diversified stock portfolio, but you wouldn't force someone to sell their parents art collection.
But even more important if say a majority stakeholder dies, say Elon Musk and everybody would know that all of his stocks will flood the market and given some shenanigans a group of investors may prevent the heir apparent to gain control of the company as it would have happened if the stock would have just passed on.
@@Dear_Mr._Isaiah_Deringerseriously, exactly how is it unconstitutional? What clause is being violated when congress is explicitly given the right to raise taxes?
Borrowing against valuations (unrealized gains) is REALIZING IT
Nope, "realizing" is a technical term. It means the gains or losses that happen at the point of sale. When you borrow against an asset you aren't selling it. You are basically giving the bank the permission to seize the asset should you fail to abide by the terms of the loan. Since there's no sale happening, there isn't a "realizing". Same reason why taking out a HELOC doesn't create a realized gains tax. You didn't sell your home, you didn't have any new income generated. So why should you face the tax?
And what happens when those assets go down in value? Tax credit?
6:24
You also lose equity and power over your own company lol
Watched the video?
@jerrymcmullan4347 yeah, so tax refund when market goes down? That's where her plan is not realistic. Just ban borrowing against unrealized gain.
@@xiphoid2011 That's almost impossible to regulate. It would be easier to tax the spending from that loaned money. The US really needs a VAT.
What U Really Need to Address is The RICH Ppl Who Think When A Homeless Person EATS it Detracts From THEM..
Real
She not talking about them teachers saving money.
If it's not possible, I'd settle for a 50% tax on just Elon and bezos
You cannot reject a tax on unrealised gains & yet use those gains to borrow loans against them & build more wealth in the process
You can't have it both ways.... You want to borrow against your net worth, sure, then allow a tax against it.... Simple
I will never get tired of writing this: I once saw this image that said that if someone lived for 80 years and earned an average of $5,000.00 every day of their life, they still wouldn't be a billionaire, but rather have about $150,000,000.00. At the bottom of the image was a line that said that no one works to become a billionaire. So yeah, we should be taxing multi millionaire and billionaire individuals and corporations in this country more then we currently are!
Thank you!
Why don't you start paying more tax yourself?
👍
Tom Cook of Apple has been given over $80M per year in compensation for the last 2 years. IF he “worked” a 6 day work week 50 weeks out of the year, that would be over $260,000 per day.
With 160,000 Apple employees, Tim Cook is taking $500 per employee.
If you and each of your friends & family would like to each send me a $500 check annually, I’ll gladly donate 50% of those checks to the federal treasury to pay towards the debt (helping all citizens and our descendants.)
Millionaire billionaires, You’re gonna have to pay your taxes to the country in which you have gained all your wealth. You poor babies!
Unrealized gains tax would crash the economy and the stock market.
the top 1 percent pay 50 percent of all taxes while dems are sending billions to ukraine
Work like you’re broke
They simply leave, and then the unrealized tax will come to you the poor
Unrealised gains tax is when you pay on your asset that grew but you haven’t still made any money on. It’s ridiculous if you don’t want a loan.
500 billion over ten years, 50 billion a year, is nothing. It’s an absolutely inconsequential amount of money compared to Federal spending.
It might be more fair, but it is not the solution to wealth inequality, the federal deficit, inflation, or anything else that plagues our nation. And it will dredge up a whole lot of other problems as well, such as mass selling of shares, which destabilizes the stock market.
This plan is half baked at best, and absolute disaster at worst, and it doesn’t prevent the loopholes that allow billionaires to put off paying taxes in the first place.
This is what we used to have back when America was great.
Hence … Elon Musk spending millions getting Trump in.
yep those money could be going to tax soon 🤣
Hence...Mark Cuban and George Soros spending millions getting Harris in.
while dems are sending billions to Ukraine
People working at Mcdonalds pay more than nurses when you adjust for income.
I’m an outsider to American politics, but here’s my perspective: Trump has always been outspoken, often unwilling to compromise. His goal has consistently appeared to be improving the U.S. economy. Even in the 1980s, he criticized trade practices, particularly Japan’s economic gains at the expense of the U.S., telling Larry King, 'This has to stop. We can’t keep running a trade deficit.' His message has remained similar over the years: America needs a stronger position in global trade.
Trump has substance in his arguments, though his approach can be abrasive, often using shock value to make his point. Yet, his intent has never seemed malicious. On the other hand, Democrats have demonstrated a strong organizational machine, able to navigate and leverage the political system effectively. This includes rallying around candidates, even those who might not seem ideal, with a unified strategy.
Republicans, after having four years to address concerns about election fraud, still find themselves facing similar questions. From an outsider’s view, it seems they may miss an opportunity again, as Democrats are relentless in managing the fine details that push initiatives forward.
The “Make America Great Again” concept is powerful, but Republicans often focus on broad strokes and can overlook the importance of detailed follow-through. Democrats’ meticulous attention to every step in the process is one of the reasons they maintain an edge in these battles. Going forward, Republicans may benefit from focusing on these details to turn their big-picture ideas into lasting policies.
The world would love to see Trump win. But … Democrats is just more superior in manufacturing something out of NOTHING. This is not a fair fight.
This will trickle down to regular people soon.
Somethings got to be done about the state of western public finances. The wealth is going somewhere. The wealth of the super rich has recently increased at unprecedented rates, yet states are increasingly indebted.
Great idea, let's make the system even more complicated! No one will figure out a way to work around this one.
Why would we, the folks who don't make that much, even need to work around this?
Adding alternative minimum taxes makes it harder to work around paying no taxes. It’s worked with corporate AMTs
I like how tax policy expands to "normal" people.
Income tax in the USA was originally for the rich, but expanded to everyone.
We need to fix the economy, so we need to take more money from everyone. If we start with the rich, people will think its fair.
Why does the government need an extra $50 billion per year? What is it going to use that money for? The government already wasted so much money, while billionaires don’t exactly stuff this money into their mattresses. They provide investments to new companies, hire workers, start businesses, etc. I question the value of giving an extra $50 billion to the government…
I am a capitalist who hates government but logically what I would like to ask is if you can tax people on the value of their home (which is their balance sheet equity and also captures unrealised capital gains) through property taxes then why can you tax people's equity portfolios and paper assets. If you are logically allowed to tax someone on the unrealised value of someone's home then why cant you tax the value of their stocks, bonds, mutual funds and others (NON-PENSION RELATED).
Why are houses taxed but paper portfolios which are easier to partially liquidate not taxed?
It does make sense that property requires local physical resources: roads, fire, police, and basic city services. A home suggests the need for additional services like education, elderly, public health, etc.
The real leverage is that capital can be leveraged with other capital to purchase more capital … and THEN, with ownership of rentals, corporations, property, manufacturing businesses, etc, owners, stockholders, board members, and executives can gift themselves ever increasing rent, dividends, stock buybacks, stock options, bonuses, and (just for show) some “income” while others do all the work.
Corporate revenue, stock options, stock buybacks, dividends, golden parachutes, rent, and all the more elaborate schemes for siphoning wealth (Eg Healthcare private equity robber barons 🤑, financial instruments, Trump-like pretend company games) should all be either taxed and not allowed to be written off or hidden from taxes.
Oh, and near zero inheritance tax is a boondoggle, too-and also detrimental to equality in our country’s future.
Long overdue. As Warren Buffett said we coddle our billionaires in the U.S.
What about property tax, real estate is unrealized as well but we have to pay tax based on assessed value? Isn’t that unfair?
Yes
Those are taxes for local municipal services which directly influence your property values. For example a place without a fire service would tank the homes value
@@johnsamuel1999 But many places don’t have high property taxes, they can still provide ample public services and housing price is high, e.g. California
funny thing is in germany they had a tax on unrealised gains. The highest court canceled it because it was not fair compared to house owners. You could put your money in a house and would not need to pay the tax, but it is also an investment just like stock. It was considered unfair so it never got back.
The problem is the step up law that wipes out the capital gains liability on inheritance. Here in Aus, if you inherit assets, you also inherit the associated capital gains tax liability. This stops the loophole of borrowing against assets and having your beneficiaries pay off the loan when you die and pay no tax
The tax has to be on NAV, net asset value. That would remove complications. Of course taxing illiquid assets would be a challenge. Like paintings, vintage cars, memorabilia, antiques and of course jewelry and ornament. I really do not see much impact on liquid assets like securities and bonds. As US capital markets are really efficient.
But when you say top 0.1% what do you mean ? It would be really challenge to identify the top 0.1%. Identifying people like Elon Musk and Mr. Jeff Bezos or the large tech magnates is easy. But when you get down the ladder it could be challenging. Let us see how this unfolds.
Remove real estate loss deduction for so called real estate professionals, remove 1031 exchange - you'll have enough additional tax plus real estate will be more affordable
an unrealized capital gains tax is a nightmare to implement and enforce. Even the current capital gains tax is a big mess with so many ways to cheat it. The fairest and easiest taxes are head taxes, property taxes (by area not value), and tolls/tariffs. Sales taxes and income taxes are bad taxes because they discourage good behavior (working and consuming) and they have to be enforced by a third party (employers and retailers).
F......Bezo's, Musk and Zuckerburg !.....and the entire 500 Walmart Heirs
All I could see this doing is affecting the market negatively. Taxing unrealized gains would mean those billionaires will be selling their company holdings to pay taxes, which would cause the stock to go down, which affects everyday shareholders. This sounds like a tax that doesn’t solve anything.
And you know this cause you are an expert or you read this on zfox news. It’s crazy how the right has convinced avg Joe that it’s better for everyone to have billionaires pay no taxes
how about a scenario where a billionaire has a made 5 billion and paid 1 billion in capital gain taxes, in some unforeseen scenario the company tanks like many of these high value EV stocks that then eventually tank, now the stock is worth 0 but now the IRS owes him a billion dollars. How can you even have a federal budget with that kind of fluctuation.
Would make more sense to propose a choice to be taxed by issuing a personal bond to the individual. Call it a $100M loan that gets forgiven in part each year by the amount of capital gains realized. It would of course need to pay a competitive coupon.
Um... you don't chop down an apple tree to harvest the apples. City folk😂
😂
Income tax started at only 3% for the wealthy and now we all have to pay.
Taxing unrealized gains NOW is only targeted to the wealthy however.....
history doesn't repeat but it rhymes
Income taxes are only paid by the top half of incomes and they support far more infrastructure and public services than we used to have as an agrarian culture. Times change.
Not to mention that dems are the only ones looking to lower the tax burden for working people.
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They should be allowed to give payment in kind for shares. Up to taxpayer, pay in cash, or transfer ownership of shares of equivalent value. That way the share price would not come crashing down.
This way the government would turn into a minority share holder just like so many sovereign funds such as Norway and Singapore. Just limit how much the government can own per company, majority government owned companies tend to become very inefficient.
The median wealth of the 0.1% is 150 million per household.
I understand why taxes on wealth is difficult idea to implement, however, if you think this will effect the average American you are unable to have this conversation, go back to the kids table and let the adults talk.
If the rich had to sell their stocks and thus asset markets dropped that would mean that the non-rich could buy assets for cheaper.
So it’s a win-win
What happens if the values fall? If you tax me because of value in a stock appreciation, then that stock price goes down, what happens? Do you give me a refund?
Taxing the rich is OK, but lets not pretend the government needs their dollars in order to spend. Dollars come from the government, not rich people.
No, nothing you learn about bank lending, the treasury, the FED, or securities changes that fact.
I would say instead of tax on unrealised gains you should tax those loans on those gains.
What about an excessive corporate profits tax on essential goods and services? Food, healthcare, housing, transportation etc.
Why they don’t make it illegal to take out a loan against an asset over a certain amount?
The problem is not wealthy aren't paying their fair share of taxes. the top 10% already pay 76% of the total taxes. One could argue, the gross collected taxes are in effect lower than where the govt. wants them to be at, but taxing them more would mean their contribution to the tax coffers would be pushing it close to a 100% (especially with the monumentally stupid unrealized gains tax). Why wouldn't a billionaire simply move their assets via the entity they control elsewhere where they get a much better tax advantage. You think there aren't other countries that shell out citizenships for $?
Top 1% pays 42% of the total federal income tax
You don’t really believe that, right?
Let's look at the top 0.1%. The top 0.1% have an extremely outsized amount of the wealth in the US. They own more than the bottom 50% of America by a factor of 5! Taxing their unrealized gains and property is not going to substantially harm them.
Top 0.1% wealth: 20.87 Trillion
Bottom 50%: 3.82 Trillion
This has increased from 1990 where the difference in wealth was a factor of under 3 compared to the bottom 50%. (1.8 Trillion vs. 0.73 Trillion)
@@Winner5zero4 Is there a reason to distrust the data provided by the agency that collects income tax?
With the highly progressive individual income tax system the US has, this is the expected outcome. This has been consistent for the past 30 years or so, across several different administrations with many tax tweaks along the way. You can easily find the number by searching for the terms: individual income tax returns by agi percentile.
They also own 30.9% of wealth in the United States. They should be paying more
AND the bottom 50 percent own 2 percent of the wealth the disparity is insane
Stop saying they as if this doesn’t apply for everyone it’s not our fault that people aren’t savvy on the game called capitalism in the United States. Everything billionaires do with taxes and acquiring wealth can be done by regular people if u know how to play the game.
I’m not a billionaire, if anything I’m barely getting by, but this is ridiculous. 25% of their income is going straight to taxes?
Increasing tax is never a solution because the wealthy will always find a way to lower that tax no matter what. These "loop holes" are not actual "loop holes" because they are actually designed to protect the lower income people, but it gets used by the wealthy. Then, the middle income people start to pay for this tax because they will have to lower the threshold to increase tax collection. Middle income class becomes devastated as they are not wealthy enough to utilize the "loop holes," and congratulations except for politicians and mega-wealthy families, you essentially created complete low income class society. This is how socialism starts and into Orwell's Animal Farm.
China and the ultra wealthy are becoming more powerful.
We as a country, need to make sure that our military and technology continues to advance.
I don't see a problem taxing the ultra wealthy. That's just my take
That’s why billionaires are fighting tooth and nail and they got poor Americas to vote for billionaires like you know if they worked for trump they would hate it😭
Its rare that most rich elites are supporting her 😂😂😂
Finally she seems to stand for something!
The WSJ makes the stupidest and most confusing analogy to confuse the issue. Big surprise. Here's the analogy. You, an everyday American in the bottom 80%, buys a house. This is the majority of the collective wealth of most Americans. As the value of that house increases, you pay more in taxes on the house. Your wealth has increased, so you pay more in taxes. Wouldn't everyone like to pay the property taxes that they paid 30 years ago?
If you're wealthy, though, you have wealth beyond just your house. If you're wealthy, you don't pay taxes on this accumulated wealth like everyone else does. Taxing unrealized capital gains is nothing more than asking the wealthy to follow the same rules that everyone else has to follow and pay their fair share.
Oh this is cute. It's not enough that they tax your income, your investments, and everything you buy. Now they have to tax the things you already own that you payed tax on when you bought it, with money that was taxed when you earned it. Before you say it's only for billionaires, open a history book. This is how they sold people on income tax, and capital gains tax. They ALWAYS say "We're going to make those billionaires pay their fair share" then in 10 years the billionaires find a way out of it and the tax has been applied to all the poor people too.
$500 billion over 10 years, so $50 billion per year. I am absolutely convinced that the us government could save way more by identifying and eliminating wasteful spending. The government would also take in way more money if Americans would demand that their stuff be made in America by people making decent wages, and not buy things that aren't. But that takes effort, and sacrifice. Inventing a new type of tax does not.
Just create legislation for a ultra wealthy death tax. Once assets of 100 million or more are distributed to the heirs of said deceased person that should constitute a "taxable transaction" where those assets unrealized gains become realized and taxed. Also create a stock compensation tax for wealthy earners. Say stock compensation of 2.5 million or more in a single year has an income tax of 20%. You could also add a payroll tax on the company side. Unrealized gains is just to hard to use as a metric.
They need to think about stop taxing ppl that don’t have any kids sooooo much…… it’s ridiculous how much they tax ppl that are responsible and not having children without wedlock. How can any man start a family ? Or afford to get married?
Inheritance taxes could go a long way to alleviating the problem
This is absurd, taxing an unrealized gain?! These guys need some accounting 101…
In fact the best is Mark Zuch. This year he’s worth 200 billion, but last year it had dropped to 35. What happens if today it shrinks in half? Do you give him a refund?
Easy, don't tax unrealised gain, but make it illegal to trade unrealized gains for anything other than money. This would prevent the exchange of stock for houses, cars, other assets, or stocks.
The democrats don't actually want to solve the problem. They just want to look like they are by proposing outlandish policies that they know will never pass.
I'm not against higher taxes as long as those taxes go to help the American people, not to wage more illegal wars and to gift billions to the likes of Israel.
Income is defined as receipt of currency that is readily acceptable in commerce. Stocks and other assets aren't in that category as you can't exchange stocks for food at the supermarket and hence are not defined as income.
This may be an ignorant comment, but comes from not having the information. What happens if you get taxed on the unrealized gains because the value of that asset goes up, but then the next few years the value of that asset goes down and lower than when you were taxed on it. Do you get a tax credit? Can someone who understands this better help me out here?
Good to see WSJ taking the fight to the boss
Just stop taxing income. Anyone with a salary isn't someone who needs to pay into the pot. Tax only the wealth and accumulation of it, only the people who are sitting on money and not contributing to society or those who are paid through boons and don't need monetary income.
If they don't do anything about it, this country will become an oligarchy country.
Dynastic wealth? Ridiculous. It's easier now more than ever to purchase stocks.
What homes? Multimillion dollar homes and those 50+ million dollar apartments in NYC that no one lives in.
No one in their right mind would give up 100MM in equity because they have to give up 8MM in taxes - please. The billionaires will find a way and keep on billioning. They will be fine like the rest of us. They will still live in a nation with looser business laws and functional government than any other part of the world. We need to stop this nonsense…
Oh brother just seeing them talking about that topic just shows how stupid society actually has become
Some politicians use this “bait and switch” tactic to tax ordinary, hardworking and high earning Americans. They first talk about so and so billionaires not paying taxes, then turn around and raise income taxes on high earners, who already pay way more than their fair share.
Top 10% tax payers, mostly NOT billionaires, already collectively represent 76%(!) of the aggregate Federal income tax revenues worth $2.2T (source: 2021 IRS data). It is utterly hypocritical for a politician to argue that they need to pay their fair share…
WHY SHOULD I BE FORCED TO SHARE MY WEALTH TO SOCIETY WHEN I MYSELF HAVE NOT ACTUALLY USE IT? 2:30
I assume the main institution this is going to hurt is stock exchanges people would be more inclined to go private to evade taxes. the tax itself only targets a handful of people. surely should have a more targeted tax strategy.
isnt using elon musk as an example seriously silly?
the guy sells periodically to a point that shifts the entire market and funds another idea that ends up hella successful.
seriously guys.
So basically fix the inheritance tax for the ultra-wealthy.
It’s not even that bad. Just sell a portion of your stock to pay the taxes. Not hard.
That's what ppl will be forced to do and what happens when u have too much stock for sale at once, it's drops
I love the whataboutism by the other commenters here.
Hypocrites.
If you punish high earners, they will leave, then low earners will then be taxed out the wazoo. “Unforeseen effects” seem apparent. It doesn’t make sense to punish the people who have been more effective in business and work to promote general economy. When they leave the system, it’ll remove the barrier to the low income earners who are left in the system, who then are punished by higher taxes eventually and anyway.
Better economic policies that promote all general industries can lead to an ability to lower taxes across the board. If there is more money moving in a productive economy, with a higher frequency of tax(due to more consumer spending) but at a lower rate, it unburdens the average person. Don’t aim to make more taxes, eventually it causes overtaxation on everyone if you allow it. Rather aim to promote general economy through smart policy that endorses good earners.
“Dig a hole for a man and you find you are in the hole with him” ; if low income earners dig the hole that tax the high earners, when the high earners leave, who is left to be taxed; The low income earners, who surely will then be taxed. It’s the creep, and it’s unsustainable.
Because if you just allow increasing taxes, rather than promoting general industry and more money in the economy in relation to the policy you are voting for, eventually everyone will be taxed out the wazoo. Look towards policy that promotes general economic growth. It’s the only solution. Who would ever vote for more taxes? Doesn’t make sense to me… best wishes.
Forgive me for making this so simple, but why not just tax loans that they take out against their assets? They are eating off of their unrealized gains by taking those loans
Solution is very simple. No tax as long as you dont use the wealth. tax if you use the wealth. You want to borrow and put untaxed wealth as collateral ? thats great please also pay your capital gains whilst you are at it. Elon Musk wants to borrow 5 billion using tesla stock as collateral ? thats great kindly pay capital gains tax on the 5 billion worth of collateral you are putting in. This measure will also prevent fire sales of billionaires which could lead into assets meltdown.
This discussion is a waste of time. Billionaires rule this country. No legislation that billionaires oppose will get passed. End of story.
If a democrat wins, billionaires win. If a republican wins, billionaires win
"it'll be pricey for the billionaires". Good.
"You'll own nothing and you'll be happy"
- Ida Auken, 2016
😂 this will affect .05% of the population. A billionaire losing a million dollars will make no tangible impact to their quality of life
Quoting this makes you look like an idiot.
You already own nothing and won’t no matter who gets elected.
1.9 billion donated to the election campaign just from billionaires to not get taxed 😂
These billionaires are supporting her campaign financially, she will never be able to tax them…
Many corporations, such as gas and oil ones, generate annual income and so this conversation does not apply to them.
She won’t do it, wealth taxes are dumb and impossible to implement effectively. Property taxes are kinda like unrealized capital gains tax, but these are really easy to implement.
Small taxes can affect investment decisions such as whether to choose tax-free municipal bonds over taxable bonds or do a Roth IRA conversion. I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this without being taxed twice?
There’s more benefit to holding fixed-income assets in tax-deferred retirement accounts as opposed to taxable accounts.
Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.
Surprising that she still wants to go through with this, considering her wealthy donors such as Soros, the Obama's, and Oprah would be effected
They are millionaire, not billionaire.
Bill gates donated 50 million to her campaign. The reason why billionaires support this tax is because it doesn't work, go look at France. It's just a distraction.
@@Marcmoody1990no soros networth is 7 billion and oprah's is 3 billion
@MarkZuuka not every billionaire like the ones you mention are upset with paying more in taxes. Many good billionaires are in philanthropy and job growth.
yeah so, and those billionaires you just mentioned are not opposed to paying higher taxes. Obama, by the way is not a billionaire; the Obama's latest estimated net worth is around 70 million.