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That's interesting. If they can simply double the nominal value of all assets while creating enough value to keep the real value constant, then tax revenue will be much higher.
A $100K income is taxes at a much greater percentage than a $50K income, even if the buying power stays the same.
That's interesting. If they can simply double the nominal value of all assets while creating enough value to keep the real value constant, then tax revenue will be much higher.
A $100K income is taxes at a much greater percentage than a $50K income, even if the buying power stays the same.
Ha Ha!
This is funny , Why not just print "tax money".. It is not like we never ran deficits.
I propose the following change to the tax code....
All capital gains are taxed as regular income but the bases for capital gains is adjusted for inflation. That's going to simplify the tax code by not having short-term verses long-term considerations and not having capital gains verses earned income considerations.
To adjust for inflation is also very simple. We already have to report the basis cost and the time of purchase. So, now we have a little table published by the IRS. It shows a value for every month since 1960. In January 1960 the value is 1.000. That value is adjusted in each successive month to reflect the inflation from Jan 1960 to that month. Then, when reporting to the IRS, I take my basis, multiply by the table's value for when I sold the asset and then divide by the value in the table for when I bought the asset. Simple as that.
There will be immediate gaming of the system with people buying on the last day of the of the month and then se...
This means you can adjust "losses" against W2 without limit.Great! Another simplification. You don't have to carry losses over for years at a time.
It will encourage gambling on stocks.
The math would get much harder with negative inflation.
The math would get much harder with negative inflation.Actually, it wouldn't get any harder at all. It's still just a multiply and a divide. And... is there any 3-month period in the last 60 years where that table would actually be lower?
democrat plan to inflate assets, then tax them?
It will fail them, everything the Democrats does blows up in their face.
They got away with a election steal.
The problem with how far they are going now isthey risk hyperinflation which will make taxes they collect worth a lot less.
They also want to reenact the SALT tax deduction that trump killed, which IMO would also juice housing prices. When I look at home prices in SFBA, they were steadily climbing until 2018, when trump killed the salt tax deduction, and they kinda flatlined after that. Bay housing is expensive, and such a tax deduction adds up when you're talking $1-2M homes.
They also desperately want more illegals, which of course inflates housing demand. See exhibit california for the effects.
Are they preparing for a future with much more inflation, positioning themselves to reap massive tax gains?
Is it some long game of lock you in place? Like, prevent people from moving out of blue states because ppl don't want to trigger cap gains.
It's would also be an easier sell to most voters. ppl know to reject a numerical tax rate increase, but most of the population probably doesnt even understand what cap gains are.