The 16th Amendment says Congress has the power to “lay and collect taxes on incomes, from whatever source derived.” And that has been understood to mean that the government may impose taxes on wages or earnings and stock dividends, but not on property or corporate wealth that grows in value. These are referred to as “unrealized gains.”
Investing is now “unrealized gains” to politicians.
They are "unrealized gains" that's not a term they just made up. They're theoretical gains that you'd have if you sold it at the current price, it shouldn't be taxed because it's not real money.
That'd be like if you had to pay taxes for 2024 on January 1st, 2024 based on the amount of money you could make. It's absolutely absurd.
At least with property tax I can see their being justification for various infrastructure costs....but as we've seen from most administrations, they hardly ever spend the money for such needs.
Investing is now “unrealized gains” to politicians.
They are "unrealized gains" that's not a term they just made up. They're theoretical gains that you'd have if you sold it at the current price, it shouldn't be taxed because it's not real money.
That'd be like if you had to pay taxes for 2024 on January 1st, 2024 based on the amount of money you could make. It's absolutely absurd.
At least with property tax I can see their being justification for various infrastructure costs....but as we've seen from most administrations, they hardly ever spend the money for such needs.
it's a tool they have proven utterly unqualified to wield.
Buddy of mine asked our local government (now seeking a third half percent property tax increase in 5 years) "where is the money going?"
Spoiler alert: they didn't like that question. Or answer it.
It's basically a wealth or head tax. It's just not for the most part progressive, and we don't talk about it.