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Liminal's avatar

Wasn't the one time tax thingy originally supposed to encourage Americans to repatriate foreign investments? How'd that work out?

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Zyxomma's avatar

Ta, Dok. I hope to live long enough to see a transaction tax. Just a teensy amount, some fraction of 1%. It would pile up quickly, and maybe we could have some nice things.

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Bob's avatar

That's an interesting idea. Like a sales tax but for investments? If I transfer part of my IRA into a new fund I pay a tiny tax on that transaction? Has someone like Senator Warren put that in a proposal?

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Zyxomma's avatar

I want it because of day traders. If they had to pay just a teensy bit every time, I believe there would be less stock fraud.

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Mark Linimon's avatar

This.

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Tina Mouse's avatar

Wealth taxes are hard, so massive unrealized capital gains and transaction and inheritance taxes can work too.

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CambridgeKnitter's avatar

I'd go for estate taxes rather than inheritance taxes because it's just easier to collect the money when someone dies rather than when some devisee gets it, perhaps long after the death occurred. Keeping track like that probably isn't worth it.

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Pilgrim's avatar

So here's Kavanaugh allowing "consequences" to enter his decision-making process, and just yesterday Roberts said that the 21c gun law could be "kinda like" 18c some laws, it didn't have to be "exactly the same". What OINO squishes! Must impeach!

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mataliandy's avatar

When you consider how much of most state and local budgets is funded by property taxes, this ruling is (mostly) a relief. The economy would collapse more catastrophically than nearly any collapse in all of human history (Roman Empire would probably still win) if the plaintiffs had won. Even "tax free" NH runs almost entirely on property taxes - which are the epitome of taxes on unrealized gains.

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Bitter Scribe's avatar

Let's wait and see how much extra revenue the IRS brings in now that they're about to start properly auditing corporations and Richie Riches.

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Old Man Yells at Cloud's avatar

The best thing the IRS could do is require that if you bring in a 3rd party such as a lawyer or accountant to the audit, your automatically taxes become public record because you have waived your privacy.

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DJ Teetop's avatar

Even if you don't take the money, it's realized in the form of access to credit on improved terms.

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Biff52 Lost Canadian's avatar

That's how so many rich people avoid taxes. They borrow against it, at quite favorable interest rates.

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DJ Teetop's avatar

Our financially illiterate media never explains that, but it's vital information.

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Ward From Cali's avatar

I originally posted this in the other S.C. thread, but it makes even more sense here.

In related Supreme Court news, there are reports that Barrett is tiring of Alito's, Thomas's and Gorsuch's dishonest originalism games. Good news, maybe?

"The Supreme Court’s approach on ‘history and tradition’ is irking Amy Coney Barrett"

https://amp.cnn.com/cnn/2024/06/19/politics/amy-coney-barrett-clarence-thomas-originalism

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Old Man Yells at Cloud's avatar

"Well, they use made up originalist arguments. But, man I’m aching for that 1800's interpretation of the Constitution." ---Contagious ACB

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carovee's avatar

Figuring out all the places that uber wealthy hid there money is real hard so we might has well not try. In fact SCOTUS thinks it's probably unlegal to tax all that wealth anyway so why even try. Wow Kegs is really looking out for the little guy.

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Edgar Allen Shmoe's avatar

Just increase the estate tax to 100%. That ought to solve a lot of problems.

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Old Man Yells at Cloud's avatar

Eliminate the exemption and you have a deal.

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SkeptiKC's avatar

The obscenely wealthy should be taxed at EVERY available opportunity.

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BillEGoatSmile's avatar

They're gonna' drop a bomb on us at 4:59 pm, aren't they?

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Comp-Jen-stator Class's avatar

Not sure what else they are holding other than the immunity one

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Land Shark 🇺🇦 🏳️‍⚧️'s avatar

Must be a yooge turd ... seeing how long they have been sitting on the terlet with this one.

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Lady MS's avatar

Truth be told, what isn’t “excellent news for billionaires” these days?

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Satanic Pancake's avatar

Guillotine futures.

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Androgenous AF's avatar

Must invest...

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IMPOed's avatar

The great Karnak sees great distress as more rulings are exposed!

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Spotts1701's avatar

Breaking - Clark County judge dismisses all charges against the fake electors in Nevada, stating that the court lacks jurisdiction as the alleged crimes did not happen in Clark County. If the prosecution wants to refile, it would need to be in Carson City (a swing county) or Douglas County (a deep-red MAGA county).

https://thenevadaindependent.com/article/judge-dismisses-nevada-fake-electors-case-over-lack-of-jurisdiction

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BillEGoatSmile's avatar

OFFS!

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Comp-Jen-stator Class's avatar

lol they did a state wide crime, but can't charge them in this county because they were not physically here

Profiles in courage

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Our_Man_In_Redneckistan's avatar

Who the fuck stuck their dick in this bowl of mashed potatoes? It reeks of ratfucking.

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Dr. Rrrrrobotnik's avatar

And/or a Garland-esque lackadaisical approach to getting around to filing charges.

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Our_Man_In_Redneckistan's avatar

I don’t think this is the last we’ll hear about this story.

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Dr. Rrrrrobotnik's avatar

Like I said below, unless the Nevada Supreme Court decides to save them they're SOL. They took too long.

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Dr. Rrrrrobotnik's avatar

"The state is unable to re-file the case up north [meaning in either jurisdiction] because a three-year statute of limitations expired in December."

So in other words, unless the Nevada Supreme Court overturns this they're screwed. This reeks of incompetence.

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Comp-Jen-stator Class's avatar

"Oh shucks, we tried"

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clairence's avatar

taxing unrealized gains is not a viable solution. taxing the shit out of realized gains makes sense though.

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mataliandy's avatar

Every property tax and excise tax, constituting the majority of all state and local budgets, is on an unrealized gains. If taxes on unrealized gains are eliminated, every state and municipality in the country goes bankrupt within a matter of weeks. It's absurd to eliminate taxes on unrealized gains.

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Pexas Teat's avatar

And I'd argue that excise taxes on, say, my vehicle are the opposite of realized gains because it depreciates year after year.

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Androgenous AF's avatar

I'd agree, but it usve to be more so years ago...20 yr old cars can still have a large registration fee.

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clairence's avatar

I don't know much about excise tax, but property tax is based on property valuation, not gains or losses.

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Jun 22, 2024
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clairence's avatar

What if values go down?

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mataliandy's avatar

If your property is subject to a revaluation the year that it drops, your taxes drop with it.

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clairence's avatar

Let's say I buy a house for $100,000

I pay taxes on $100,000 valuation even though I have zero gains.

The next year, it's valued at $120,000

I pay taxes on $120,000 valuation, not $20,000 gain.

The economy shifts and the next year, it's again valued at $100,000

I pay taxes on $100,000, even though I have an unrealized loss from the previous year and zero gains from the start.

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carovee's avatar

Not really, because wealthy people don't have to realize their gains. Then can hold on to that theoretical money forever. Meanwhile, when you or I cash out to cover unexpected medical costs we'll end up being taxed up the wazoo.

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clairence's avatar

There can be tiers of taxation, and obviously tax rates vary anyway.

But unrealized gains come and go. Are unrealized losses credited then?

Real world example:

Let's say I buy a bunch of Tesla stock in Jan 2021 at $285/share.

Jan 2022 it's up around $350/share. Unrealized gain of around 25%

tax that gain

Jan 2023 it's now around $122/share. Unrealized loss of around 65%

is that loss credited somehow?

Jan 2024 it's back around $225/share. Unrealized gain of nearly 85%

tax that gain

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Old Man Yells at Cloud's avatar

If you tax unrealized gains and losses on equity what other things qualify for unrealized gains and losses? My car lost 25% of its value the second I drove it off the dealer's lot. Do I get to claim that unrealized loss?

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clairence's avatar

Trading cards? Rare plant specimens? High tops?

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carovee's avatar

I see your point, but I think methods to handle evaluating the value of wealth exist. You could be taxed for the average value of your stock in any given year because it is part of your wealth. Your wealth isn't as high in 2023 as it was in 2021 or 2022 but it is still wealth.

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