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Democrats now want to tax unrealized capital gains

By zzyzzx following x   2019 Apr 3, 4:32pm 858 views   15 comments   watch   nsfw   quote     share    


https://www.redstate.com/elizabeth-vaughn/2019/04/03/breathtakingly-terrible-idea-sen.-ron-wyden-proposes-new-tax-unrealized-capital-gains

Sen. Ron Wyden (D-OR) has floated the asinine idea of taxing individuals’ unrealized gains in asset prices. Currently, capital gains tax is paid only when an asset is sold.

As absurd as that sounds, it gets even worse. Wyden’s plan proposes taxing these gains as ordinary income, for which the top rate is 37%, as opposed to the current, lower tax rate of 23.8% for capital gains.

Wyden said that his proposal “eliminates serious loopholes that allow some to pay a lower rate than wage earners, to delay their taxes indefinitely, and in some cases, to avoid paying tax at all.”

The plan would require estimating the cost of every asset at year-end to determine the price appreciation (or depreciation) and paying the tax. It would be a fairly easy matter for assets which are traded on an exchange.

It would become very complicated if the price appreciated one year, then depreciated the next. It would turn into a logistical nightmare, especially for active traders.

Wyden’s plan would create even more problems for those who own small businesses. Imagine trying to value a business every year.

According to the Wall Street Journal, this idea has been raised in the past mostly by academics and one study estimated that, if implemented, the government would collect an additional $125 billion in annual revenue.

The article cites as an example an individual who buys $1 million dollars of stock in 2002. It has a current value of $10 million. Under Wyden’s plan, the investor would pay 37% of each year’s gain in taxes. Under the current tax law, no taxes would be paid until the stock was sold. And the gain would be taxed at 23.8% instead of 37%.

Additionally, if the individual left the stock to an heir, no tax would be owed on the gain. Under current estate tax laws, heirs pay capital-gains taxes only on gains occurring after the prior owner dies.

And it is this scenario which drives Democrats the craziest.

Sen. Pat Toomey (R-PA) called Wyden’s plan a “breathtakingly terrible idea.” He said “capital gains get preferential rates now for several reasons, including to mitigate inflation. Under Mr. Wyden’s proposal, someone could pay taxes on an investment one year as it rises, even if the investment later falls.” He added that “the plan would go nowhere as long as Republicans control one part of the government.”
1   Entitlemented   ignore (0)   2019 Apr 3, 4:34pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

So much for the Progressive byline. Think Kennedy was the last Progressive D.

This is beyond regressive ....
2   HeadSet   ignore (1)   2019 Apr 3, 4:36pm   ↑ like (2)   ↓ dislike (0)   quote   flag        

This is like Bill Clinton's suggestion of taxing a paid off home as if the homeowner received in income what the 30 year mortgage payment would be.
3   TrumpingTits   ignore (1)   2019 Apr 3, 9:03pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

zzyzzx says
Sen. Ron Wyden (D-OR) has floated the asinine idea of taxing individuals’ unrealized gains in asset prices. Currently, capital gains tax is paid only when an asset is sold.


Too bad for that moron that is a direct tax, which is unconstitutional for the federal government to levy w/o apportionment.

That is why cap gains can only be taxed w/o apportionment when sold, as that is a transaction which the taxation thereof is an indirect tax.
4   Ceffer   ignore (2)   2019 Apr 3, 11:06pm   ↑ like (2)   ↓ dislike (0)   quote   flag        

Just have a couple of LibbyFucks from Portland gather around a Ouija board, and hallucinate present day tax on future delusional earnings according to the LibbyFucks' sense of social justice and conscience.
6   HeadSet   ignore (1)   2019 Apr 4, 6:44am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Was not there an issue awhile back where some investors in a type of Mutual Fund had outrageous tax bills? Apparently the Fund made high gains in a sale of stocks, where each investor was assessed his portion of the gains tax, but then the total Mutual Fund value plummeted and the investors still had the gains tax even though they lost money in the Fund overall.
7   zzyzzx   ignore (1)   2019 Apr 4, 6:55am   ↑ like (0)   ↓ dislike (0)   quote   flag        

HeadSet says
Was not there an issue awhile back where some investors in a type of Mutual Fund had outrageous tax bills? Apparently the Fund made high gains in a sale of stocks, where each investor was assessed his portion of the gains tax, but then the total Mutual Fund value plummeted and the investors still had the gains tax even though they lost money in the Fund overall.


That's every mutual fund at the beginning of a down market.
8   FortWayneIndiana   ignore (4)   2019 Apr 4, 7:22am   ↑ like (2)   ↓ dislike (0)   quote   flag        

Democrats gone off the rails.
9   Tenpoundbass   ignore (14)   2019 Apr 4, 7:36am   ↑ like (1)   ↓ dislike (0)   quote   flag        

You should be allowed 10K a year in Capital gains tax free.
Also if you are taxed on Capital gains, then the next year you lose money. You should get rebate what you paid out last year.

Greedy Democrats wanting money that is not theirs and did not put up any risk for. Should be round up and imprisoned in a desert open fenced coral, with no supply roads.
10   Elgatouno   ignore (3)   2019 Apr 4, 7:43am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Tenpoundbass says
Also if you are taxed on Capital gains, then the next year you lose money. You should get rebate what you paid out last year.


Capital loss, Google it
11   zzyzzx   ignore (1)   2019 Apr 4, 7:55am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Elgatouno says
Capital loss, Google it


The thing is with mutual funds it doesn't work that way. On down years you don't get to take capital gains losses. You just get zero gains. If you hold the fund long enough, they offset any future gains yes, so you get it eventually in the form of reduced capital gains during the next bull market. At least that's how I understand it.
12   just_dregalicious   ignore (0)   2019 Apr 4, 8:49am   ↑ like (0)   ↓ dislike (0)   quote   flag        

zzyzzx says
The thing is with mutual funds it doesn't work that way. On down years you don't get to take capital gains losses. You just get zero gains. If you hold the fund long enough, they offset any future gains yes, so you get it eventually in the form of reduced capital gains during the next bull market. At least that's how I understand it.


Maybe she's thinking about how it's done in Canada?
13   Iranian_Oil_Burse   ignore (5)   2019 Apr 4, 10:57am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Elgatouno says
Tenpoundbass says
Also if you are taxed on Capital gains, then the next year you lose money. You should get rebate what you paid out last year.


Capital loss, Google it


Only $3K in losses can be carried over to the following tax year to offset gains. It's nothing, basically. Fucking peanuts.
14   HEYYOU   ignore (31)   2019 Apr 4, 11:06am   ↑ like (0)   ↓ dislike (0)   quote   flag        

No govt. exist without it's citizens being in favor of Redistribution Socialism.
Republicans hate socialism when will they eliminate all taxes?
Rep/Cons are just takers.
15   Iranian_Oil_Burse   ignore (5)   2019 Apr 4, 11:09am   ↑ like (0)   ↓ dislike (0)   quote   flag        

just_dregalicious says


Maybe she's thinking about how it's done in Canada?


Or doesn't have a fucking clue at all.

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