Do you like Kamala's unrealized gains tax proposal?

[coachTanthony]

Unrealized gains are increases in the value of an asset that have not been realized—either through sale or a deemed realization event. They are, simply put, the increase in the valuation of an asset “on paper.”

Is collecting tax on paper profits fair? It might be for wealthy people now but just like property taxes that go up due to perceived value this too will hit citizens sooner or later.

[Anpu23]

It's absolutely ridiculous, Its either incentivizing divesting and turning unrealized gains into capital gains to get it down to 15%. Or it will disincentive investing in any illiquid asset that requires a long term hold because you’ll be required to find cash to cover paper gains in an illiquid asset over a long period of time.

In other words it'll hurt venture capitalists and people who invest in companies, so the smart money will go elsewhere.

As an example, lets say you have $100,000.00 in stock and it's rule 144 restricted (it means that you can't legally sell it) and the stock doubles in price to $200,000.00 how are you supposed to find $25,000.00? You can't sell the stock it's illegal, if you try and loan against it the terms are not good as the stock is limited so has limited value, so even if you can collateralize all 200k you MIGHT be able to loan 25k and then you're stuck with loan payments.

People without assets get wealth and liquidity confused a lot. Just because someone has a significant amount of wealth does not mean that they have a lot of cash. And this proposal is directly going after those individuals. It'd bankrupt some people, seriously hurt others and make it impossible to find an angel investor into a company or idea. It'll cripple our economy.

[Anpu23]

Thanks for MHO

[worldscolide]

Lamo, she wants to tax money that doesn't exist. That's bullshit. And you wonder why I'm voting the other guy.

[exitseven]

The thing about this is that she is dead serious about this. It is the next step in the conversion of the US to Communism. The state will just come in and start confiscating eveyone;s property. They are pushing for digitsl currency instead of cash so the government controls everything.
It is like watching Lets Make A Deal and somebody wins a new BMW. The people watching at home think it is really cool but what they don;t realize is that the government treats the car as taxable income. That $60,000 car will require a $20,000 cash payment to the IRS. Most people do not have that kind of cash on hand so they ususlly have to sell the car.
The govenment would love to see this happen. My house is worth more than a million dollars and it is worth ten times what I paid for it 24 years ago. The IRS would require a $90,000 cash payment of else they will just confiscate my home and probably let some illegal alien live there.

[DrPepper12]

Assets are not taxable income. You don't make over $400k anyway. No one is pushing for digital currency; Chuck Schumer wants to recognize it's legitimacy so it can be taxed and regulated - that's all

[exitseven]

@DrPepper12 Assets are not taxable income YET. This is what Harris wants to implement.

[Dargil]

Lets say I bought a house 15 years ago for $100,000. Now Zillow says it is worth as much as $300,000. It has appreciated $200,000 mostly due to government-caused inflation. The swamp reads Zillow and taxes me 25% on unrealized gains, although I haven't even sold it. That's $50,000. That will bankrupt me and cause me to sell the house (probably at a loss) to pay the tax. The house will be snapped up by Blackrock, Vanguard or State Street and converted to high density housing, part of Kamala's Socialist plan. See how that works?

[Dargil]

If you want to live like in the USSR, vote Democrat. If you don't, vote to MAGA.

[DrPepper12]

JFC. 1) doesn't apply to people under $400k in INCOME 2) Doesn't apply to real estate 3) DOES apply to gains on capital

[Dargil]

@DrPepper12 Slippery slope. They will change the rules when they need to. Like everything democrats do.

[DrPepper12]

Doesn't address my facts. Apologies accepted

[Miristheiss]

Politicians scheming up more ways to get money away from the people that work, save and invest it and filling their bloated coffers with it. They can never think of enough ways to fucking waste our money and for more bloated programs to start.

F them.

[DrPepper12]

You make over $400K a year? You have unrealized capital gains over $250K? I don't think so

[normalice]

The far right billionaires like to fear monger that this will eventually be extended to the non rich but the only people who would do that are politicians backed by the far right.

[coachTanthony]

Property taxes already do this... my taxes went from 3700 a year to 6500 a year due to it's perceived value just last week. So why would this be any different?

[normalice]

As I'm sure you are well aware, property taxes are controlled at the state level, not the federal. I understand you only have fear mongering, because republicans have no plans for how to claw our money back from the rich, but you're going to have to come up with more clever deflections than that.

[coachTanthony]

lol thanks for the comments.

[normalice]

No problem.

[msc545]

Move to California and buy some property here. We Pay property taxes based on 1% of the last sale price - period. No increases ever, but some possible decreases due to declining value if that happens.

[Dina_Melissa19]

Kamala Harris's unrealized gains tax proposal aims to tax the appreciation of assets, such as stocks and real estate, even if they haven’t been sold. This approach seeks to address wealth inequality and increase tax revenue from high-net-worth individuals.

Supporters argue that it could close tax loopholes and ensure that wealthy individuals pay taxes on their accumulated wealth, not just their realized gains. Critics, however, raise concerns about its complexity, potential impact on investment behavior, and administrative challenges.

The effectiveness and fairness of such a proposal are subject to debate, and it would likely require careful design and implementation to address potential issues.

[FunkyMonkee]

NO! It's STUPID!! Just like her!!
You have a house. The value oof it goes up over time. Even though you have no intention of selling and you aren't GAINING ANY money from it's worth, you have to pay MORE taxes on money you aren't getting! And, what are they gonna do with it? Give it to Ukraine!! Yeah, that's a REALLY good idea!!

[DrPepper12]

Yes and no. We must be more creative in taxing the wealthy which is why we need expansion of personnel and resources for the IRS. Taxing paper gains is not a good idea even if kamalas plans only apply to $400k or more. The carried interest loophole, non progressive tax tables, ability to use assets as collateral but not pay taxes on something THEY OBVIOUSLY own and payroll tax max of @ $125K all need addressing by our prostitutes, ahem, congress people.

[blueonblack22]

Saying “tax rich feed the poor” has been the leftist bs Robin Hood mantra forever and it does NOT work.

Rich people aren’t stupid. They always find way tax loopholes. If there aren’t any they will LEAVE.

[DrPepper12]

They can't have tax loopholes unless they bribe our congressman. Public campaign finance will put an end to that. And if they leave how are those dollars going to be repatriated? Has to come home eventually

[blueonblack22]

Just look at what’s happening with people and businesses leaving blue states with onerous tax rates for red states with much lower state taxes. When a business downsizes or worse goes bankrupt because it is being crushed with taxes EVERYBODY loses. Fewer or no jobs, less or no tax revenue and a loss to the local community.

[blueonblack22]

This is so incredibly asinine that a 5th grader studying basic economics would understand this ridiculous. This would bankrupt thousands of companies overnight.

[DrPepper12]

You really should read before you comment. Or at the very least be somewhat familiar with the topic. Her plan is for individuals not companies.

[Kelley1]

She wants more money. Governments always want more money.

[DrPepper12]

That's not the point. More money or less money is irrelevant. It's whether you're getting value for your money. Clearly if we want more or better services it's going to require more money.

[msc545]

It is a LOT fairer than income inequality. What wealthy people do instead of paying taxes is borrow money against the value of assets they own. The rest of us must make up the budget shortfall when they avoid taxes like this.

In essence, we pay the taxes they DO NOT pay.

[AviatorTom]

How can you tax something that hasn't happened yet? The federal government is legally allowed to tax income. An unrealized gain is not income... yet. Wait until it becomes income and then tax it.

[DrPepper12]

If it's not income or doesn't exist why are they allowed to use it for collateral then?

[AviatorTom]

@DrPepper12 Because it could be sold if needed. But the collateral has no tangible value until and unless it is sold.

[DrPepper12]

Correct. It has no value til sold. How can it be a security for a loan if it doesn't exist?

[FearlessFlame]

Does the orange clown pay you to spread misinformation and propaganda or are you just rage-baiting for comments and attention? Seems that she lives in your head rent-free

[ProbablyClueless]

I guess it depends on which assets will be subject to the tax. Taxing the unrealized gains on someone's investment portfolio would effectively destroy anyone but the richest people's ability to make a living off of investing.

[DrPepper12]

How so? It's only going to apply to people who have capital gains over $400k? Besides, if they're allowed to use those unrealized gains for collateral then they obviously do exist and not just on paper and can and should be subject to taxation.

[ProbablyClueless]

@DrPepper12 There are a few reasons: 1. $400k isn't much, in terms of unrealized/potential value of assets because an asset's theoretical worth is more or less divorced from the actual marketable price. Anyone with a home, maybe a business, maybe investment properties will be easily over $400k in potential value. 2. an unrealized gains tax will disincentivize long term investment holding, because unless you have the disposable income to cover the tax from your income stream, you'll have to sell assets to ensure that you have enough money. 3. You'd be destroying the concept of using property to leverage access to longer term debt, which is how people use property to build additional wealth.

Collateralizing an asset based on unrealized value is creating a long term equity interest in an asset being held over the long term; it's a theoretical exchange of equity for value happening over time. You shouldn't be taxing an asset based on unrealized value because the collateralization is happening against the borrower, based on the anticipation of value, not on the value of the asset itself.

Did that make any sense?

[DrPepper12]

1) DOES NOT include real estate
2) the median balance for 401K for 65+ is $88,488
3) The median savings account balance is $8,000
4) DOES NOT include businesses
5) again it DOES NOT include real estate so leverage away!

How would you propose to tax collateralized debt? Just forget about it? No! Look where that has gotten us. 1% own 54% of all investment assets. Tax the rich. Full stop! 🛑 ✋🏻☠️

[ProbablyClueless]

@DrPepper12 "Almost any type of asset you own is a capital asset. This can include a type of investment (like a stock, bond, or real estate) or something purchased for personal use (like furniture or a boat)" www.investopedia.com/terms/c/capitalgain.asp

As for how to tax on collateralized debt; I have no idea. Maybe only place taxes one it once it has been collateralized?

[PsychicBoobs]

Over the tall tales the other side offers. You bet.

[OddBeMe]

Good! When corporations hide assets overseas we bring out the big guns.

Not sure why right wingers suck corporate dick, honestly.

[Guacamole409]

It’s theft. The left has no shame.

[Dongie]

Future opinion is NO.

[gatixek710]

she is a commie scumbag.

[DrPepper12]

Ooooooooooooooookkkkkkkkkkkkkkkkkkaaaaaaaaaaaayyyyyyyyyy

[gatixek710]

@DrPepper12 no other way trying to grab imaginary money from people

[DrPepper12]

It's NOT imaginary!! It's used as collateral for loans!!

[gatixek710]

@DrPepper12 Have you ever asked yourself why you’re so eager to take other people’s things? Is it because you are a failure yourself?

[DrPepper12]

Maybe I would like to reduce the negative externalities of capitalism in service of a better society. Maybe.

[gatixek710]

@DrPepper12 so you’re for getting rid of the government, too?

[DrPepper12]

That's not a negative externality now is it?

[gatixek710]

@DrPepper12 considering that government regularly takes bribes from companies to enact legislation to restrict competition - absolutely.

[DrPepper12]

So you support public campaign finance like almost all other countries have to avoid this problem?

[gatixek710]

@DrPepper12 public financing wouldn’t stop our government being too large and being part of the corruption.

[DrPepper12]

Size is another question but IT WILL help arrest "legal" corruption. Imagine having our Congressional prostitutes not fundraise and suck corporate dicks for $

[gatixek710]

@DrPepper12 Remove all their power and the incentive to bribe them is gone.

[DrPepper12]

But the very nature of government is a monopoly on power. That makes no sense. Are you suggesting a Hobbesian type world where it's man versus man and life is "nasty brutish and short"?

[gatixek710]

@DrPepper12 I’m expecting a government that follows the constitution.

[DrPepper12]

And you have one even if it and they are irreparably old, broken and piss on every attempt at change. For the most part this suicide pact among the states works as intended - paralysis and gridlock rule the day!

[gatixek710]

@DrPepper12 Which amendment decided > 50% of my income should be taxed?

[Anonymous]

Nope, wealth confiscations by another name

[DrPepper12]

But I thought unrealized games don't exist? How could it be wealth confiscation if it doesn't exist Except on paper?

[Opinion Owner]

I'm talking everything, the car on your drive will be crushed, you pension appropriated, grandmas silver is now the governments silver, houses will be taken, turned into prisons where your allocated slop made from boiled down bodies will be delivered once a day

[DrPepper12]

It must be exhausting to be you. Seeing threats, terror, outrage and conspiracy everywhere.

[Opinion Owner]

Seeing the truth is freeing, put down the Kool aid and try it sometime

I get it you and Norm wanna be the bread on a Kamala sandwich but she'll just cackle as she executes you like the millions before

[DrPepper12]

Millions before? WTF are you talking about?

[Opinion Owner]

She won't kill those who elected her at first but when the Chinese say now they've gotta go she'll not hesitate then she'll be killed by them as well