zlacker

>>southe+(OP)
I wonder if this is coming up just before the election because of the Harris campaign’s suggested policy of capital gains tax on unrealised gains for people who have over $100m in assets? I think this is a great idea personally given what these people are doing to avoid paying tax including taking out loans against their own share portfolios. Worth thinking about what people are willing to do to not pay billions of dollars worth of taxes.

>>andy_p+ex
I feel an exchange tax that included loans would probably be a much better approach. Taxing seated/parked assets, especially on the very wealthy seems like a recipe for disaster. So you have to sell, or leverage the property to pay taxes. What would trying to sell billions in stock at once, or leverage hundreds of thousands of rental properties look like to the larger economy, and what would the effect be? Also, who is going to be able to even buy the stuff, if everyone with enough money/credit is scrambling to make huge tax layouts. Will you be able to deduct the interest on loans taken out to pay these taxes?

It's not like the money is just sitting, liquid in a vault like Scrooge McDuck.

>>tracke+PP
I love your consideration for the financial problems of some of the most privileged people in all of human history. I just don’t really care that much if they get a big tax bill (I’m sure they’ll find a way to pay) and for a variety of reasons it will be good for society.

>>andy_p+XT
They're not concerned about the wealthy, but the state of the economy. Bad things happen when the prices of things change dramatically. E.g., if you happen to own an asset that a billionaire now needs to fire sale, you'll lose out as well.

>>foota+xZ
That will only be temporary won’t it, hold your shares or buy more at a discount.

>>andy_p+T21
It’s not that simple. If hundreds of billions of dollars need to be liquidated across every asset class in every industry, the entire economy is going to tank. Not just “oh no the stock market’s down.” Asset prices would drop severely (housing being the most “regular-person” applicable), many business will fail meaning many people will lose their jobs, and mortgages will be foreclosed upon due to suddenly being incredibly underwater without jobs. Picture 2008, but worse.

“Hold your shares or buy more at a discount” is incredibly out of touch with the average person who will be affected by an economic depression.

>>jmb99+1p1
https://www.axios.com/2024/08/23/kamala-harris-unrealized-ca...

“Payments can be spread out over subsequent years”

>>andy_p+av1
Then it becomes a question of selling the needed asset now during the fire sale or waiting and having to sell even more as the price fails to recover over the years.

SVB would still be around today if it was possible to convince people to not panic sell

>>bryan_+by2
You don’t know that the company will perform worse because of the owners having to pay their taxes.