Biden to propose "billionaires tax" in the 2024 Budget

Exactly. If my net worth is 150K that qualifies me to be taxed 20% more than the normal rate (I'm assuming) on just the 50K I made that year.

 

Exactly. If my net worth is 150K that qualifies me to be taxed 20% more than the normal rate (I'm assuming) on just the 50K I made that year.

 

Yes, you are right, my wording was not precise.

English not being the first language is probably a factor, but typing on my phone on a plane after several drinks probably the bigger contributing factor.

 

The issue, though, is what is being taxed. Taxing on gains in the value of one’s stock portfolio is very different than taxing income. Or am I misunderstanding the proposal?

 

Here is issue I have with this. The tax is also on unrealized gains. So if my stocks go through the roof one year I am taxed on those unrealized gains at the end of the year, but they tank next year do I get to deduct unrealized losses? If not what happens when they go up the following year, but not to the level of the first year, I am still at a loss, but a gain from the previous year, do I have to pay tax on the gain from the previous year? Did that make sense? LOL

 

Basically, I think this is a very populist proposal. A lot of people will basically be in favour of it because it doesn't affect them; right now, it would only affect a tiny percentage of people. But once you allow this concept to take hold, the thresholds for when this applies will go lower and lower and lower.

 

Exactly.

 

Nope. You're right. Unrealized gains will be taxed.

 

I THINK I would be okay with it if you could deduct unrealized losses for the following year ( in my example)

 

As always

 

And this is another example of "framing" from the Left. By calling it a "billionaire"'s tax, most people will think they are not affected, but a lot more may be affected than people think now.

Like calling it "Don't say gay" law to rile people up when that is nowhere in the actual law.

Admittedly, clever.

 

There are a lot of people who are "rich" that are cash poor. Now I don't mean poor as in struggling to make the house payment or buy their next Mercedes or 5, but a lot of people worth 100 million wouldn't be able to walk into the bank and withdraw 5 million bucks this instant.

 

That would be me.

Being very rich on paper doesn't mean much, and can change in an instant.

I'm relatively cash poor (again, it's all relative, not complaining at all, I'm grateful for what I have).

 

Read the entire thing again. It isnt just taxable income. It is unrealized gains too. So if you invested 10K in stock and that went up to 20k in a year. You made 10K that year, right? So you would be taxed 2K. But you didn't sell that stock so you actually made zero cash.

Now next year. That stock tanks. It is back to worth 10K. You don't get to deduct the unrealized losses. You haven't cashed out yet.

The next year the stock does better. You are up to 15K. 5K gain. 1K tax, but you still haven't cashed out. So out of your initial 10K investment you have paid out 3K in tax and netted 2K that you still haven't cashed out yet.

That is not income. That is the new proposal

 

Taxing people on unrealized gains is crazy, and it will not stand. It would basically kill entrepreneurship in this country. Imagine founding a startup and getting taxed on paper valuation gains before you have ever seen any cash.

It's just not possible.

 

Of course it wont pass. It would destroy the markets.

 

I think it's just 20%, for those whose taxes are below 20% (and whose household has a net worth of over 100 million)

So if your tax rate is 12%, add 8%. If it's 18%, add 2%

20% minimum tax

 

wealth/property taxes are unconstitutional

it's why unrealized gains can't be taxed, as much as Liz Warren wants to