(08-25-2024, 11:40 AM)The Real Marty Wrote:

(08-25-2024, 10:21 AM)EricC85 Wrote: I mean her support and desire to implement is in the spirit of Marxism. Ultimately Marxist seek any path to eliminate, confiscate or restrict individual wealth and ownership for central control. I don’t think anyone argues the idea much less the implementation of an uncapitalized gains tax is a fast path to economic ruin. 

There has not been much her campaign has been specific about, probably by design, but this one is disastrous. 

I think you mean unrealized gains.  It's a crazy, unworkable idea.  How much gain does a person have in a painting he bought 40 years ago?  Or in a unique business?  I have seen a business appraised at one value, only to sell for 10 times that value a couple of years later.  The only way to get an accurate valuation on anything is to put it on the market and sell it.  That's why we tax realized gains, not unrealized gains.  Because a transaction is easily measured, but without a transaction taking place, an asset valuation is just a guess.  

And then, if we tax unrealized gains, how will we treat unrealized losses?  Would the government hand out refunds?  

And how many court cases would there be when the owner of the asset disputes the valuation the government wants to put on that asset?  If I own a Picasso, and the government says it has gained in value, from 9 million dollars last year to 10 million dollars this year, I might go to court to dispute it.  We'd be starting up a whole new industry of lawyers, accountants, and appraisers who exist just to dispute the unrealized gains claimed by the government, and the tax they want to assess.  

If we put a wealth tax on wealthy people, based on unrealized gains in their assets, how many wealthy people will just leave the country?  That happened in France before they repealed their wealth tax.

Canada just did this. It will cost them a ton of tax dollars and investment money in their country.  Anyone that could have sold any assests before this law can go into effect and now no longer are doing business there.

The last time the US raised corporate taxes like is proposed all the Pharma companies moved their HQ to Dublin.  They came back once Trump lowered the tax rate. The people in Dublin are all for this, it is a cottage industry there.

---