1598
Let's play the rich get everything. The rules are the rich get everything. participation is mandatory.
(lemmy.world)
Did I say mandatory? I meant optional! You're "free" to die in a cardboard box under a freeway as a market capitalist scarecrow warning to the other ants so they keep showing up to make us more!
Mhm. There's two very good reason unrealized gains aren't taxed: volatility and cash flow. Are you and the government expected to swap cash back and forth everyday to correct for changes in the market? No that's silly. Should people go into debt because they don't have the cash to pay the taxes of a baseball card they happen to own that is suddenly worth millions? Also silly.
For that same reason, using unrealized gains as security is dangerous, just like the subprime loans market was!
There's a very good reason they should be taxed; half a dozen people are richer than god, and basically never pay any real amount of tax.
This would effectively lock out every small investor from the stock market due to the liability of both success and failure.
How so?
"Oh no, I made money, better put a small percentage of my gains away for tax season, just like I do with all of my income, because I'm American and lack a good PAYE system".
Someone here has made a false assumption. In fact, I'm pretty sure we both have made several. The question is who has made a fatal false assumption? Let's go.
My root comment, at the top of all of this, was my idea that perhaps we should consider gains "realized" when they are sold OR used as a collateral in a loan.
Your assertion is that it would wipe out small investors.
I would question how many small investors are using their small investments as collateral in a loan?
You said small investors not Wallstreetbet degenerates.
But sure, now we're just insulting each other, I'm going to ignore that and try to answer your point.
TBH. US tax is weird as fuck, and I don't know nearly enough about it to have more than a high level discussion on it. In my head, this would simply change when you're paying taxes, as opposed to how much.
But.... Nope. Tried to reason about it, can't think of a nice clean way out. It's friday afternoon. I'm out.
What is your alternative solution to the over all problem?
Constitutionally outlaw corporate personhood and all derived market futures. But, that won't solve the core issues with capitalism or human proclivity.
Sounds reasonable. Why not both? Both sound good.
I don't answer questions twice.