"unrealized capital gains" aren't taxed because they're not income until you sell the asset.
This is designed solely to ruin middle class investors, because you know the truly rich people have a million loopholes to get deductions and exemptions.
The tax law is a violation of GAP standards for accounting.
They don't want you making money on investments and assets the way that they already did.
This would actually also manage to kill the Keynsian system of US Bonds based on mortgages, because home ownership will never accrue wealth. Not to mention that this includes your retirement/pension funds. Now those are going to be taxed before you get anything out of them. Good luck saving for your retirement when you lose the value of your home by 25% a year, and you lose 45% of your pension fund when you withdraw it, especially considering an inflation rate every year that's probably closer to 5%... compounding. You will be driven into poverty by the government.
There is a 0% chance this won't be expanded to people making less that $50,000 a year.
once you accumulate enough assets, you just put them up as collateral for loans constantly and repeatedly. never sell them, so legally there's no capital gains tax to be paid. the money from the loans is not taxable income, and in many cases, the interest paid is even tax deductible.
and when you die, you leave the assets to a family member, and their value basis is the new value, not your original value, so there's no capital gains paid at all.
all of the ultra-wealthy are doing this nowadays to pay virtually nothing in taxes.
there are easy ways to fix this, but the communists would rather impose a MASSIVE over-expansion that's basically a wealth tax.
I don't see how that's a problem. The government is way too big. They don't need any more money. It's not "fair" but everyone needs to avoid paying taxes as best you can.
It's just naked wealth confiscation. Every year you are forced to sell assets and turn the cash over to the government for your unrealized gains tax. Confiscatory wealth tax by another name.
Remember, these people overspend by $2-3 trillion every year.
"unrealized capital gains" aren't taxed because they're not income until you sell the asset.
This is designed solely to ruin middle class investors, because you know the truly rich people have a million loopholes to get deductions and exemptions.
The tax law is a violation of GAP standards for accounting.
They don't want you making money on investments and assets the way that they already did.
This would actually also manage to kill the Keynsian system of US Bonds based on mortgages, because home ownership will never accrue wealth. Not to mention that this includes your retirement/pension funds. Now those are going to be taxed before you get anything out of them. Good luck saving for your retirement when you lose the value of your home by 25% a year, and you lose 45% of your pension fund when you withdraw it, especially considering an inflation rate every year that's probably closer to 5%... compounding. You will be driven into poverty by the government.
There is a 0% chance this won't be expanded to people making less that $50,000 a year.
the problem is buy-borrow-die tax planning.
once you accumulate enough assets, you just put them up as collateral for loans constantly and repeatedly. never sell them, so legally there's no capital gains tax to be paid. the money from the loans is not taxable income, and in many cases, the interest paid is even tax deductible.
and when you die, you leave the assets to a family member, and their value basis is the new value, not your original value, so there's no capital gains paid at all.
all of the ultra-wealthy are doing this nowadays to pay virtually nothing in taxes.
there are easy ways to fix this, but the communists would rather impose a MASSIVE over-expansion that's basically a wealth tax.
I don't see how that's a problem. The government is way too big. They don't need any more money. It's not "fair" but everyone needs to avoid paying taxes as best you can.
It's just naked wealth confiscation. Every year you are forced to sell assets and turn the cash over to the government for your unrealized gains tax. Confiscatory wealth tax by another name.
Remember, these people overspend by $2-3 trillion every year.
And the price of taking them to court is less than the price they’d pay in the new tax. It’s completely retarded.