The proposal under consideration from Senate Finance Committee Chairman Ron Wyden (D., Ore.) would impose an annual tax on unrealized capital gains on liquid assets held by billionaires, Treasury Secretary Janet Yellen said Sunday on CNN.Wall Street Journal 10-25-21
“I wouldn’t call that a wealth tax, but it would help get at capital gains, which are an extraordinarily large part of the incomes of the wealthiest individuals and right now escape taxation until they’re realized,” Ms. Yellen said.Wall Street Journal 10-25-21
Help get at capital gains? Get at❓ Large part of income? Escape taxation until they are realized? What kind of double talk is that? If they are not realized, how can they be income? They are taxed when realized, duh! So are my 401k and IRA distributions.
Think of the precedent this sets. Income is no longer actual income, but what may be income today and could be gone tomorrow Today billionaires, tomorrow millionaires, next day upper middle class Americans. Nobody pays tax on what they did not realize.
Then there is this, paying for ongoing programs based on a highly volatile source. A multi-year bear market, an international crisis, a failed company and poof government revenue evaporates or greatly declines. There is an incentive for a stock price not to increase until the time of right. Maybe move assets from liquid to fixed assets.
This sounds like some Enron accounting to me. We are going to tax you at what we think is “fair value” not actual gains.
During a bear market, will the IRS give us money for unrealized capital losses?
Corrupt political elite, always looking for another revenue stream. What’s next a carbon tax on all the C02 each person expels per year breathing?