The case before the Supremes this week would allow for wealth taxes. Think Congress should be able to tax you on wealth you have earned before you actually sell your investment?
Example: suppose you own a home, after remodeling and an increase in value due to inflation, your million dollar home is now worth 1.6 million. Currently Congress could charge you 20% of that 600K you just "earned".
Fair?
Thomas Sowell: There are no solutions, just trade-offs.
Do we get tax refunds when the assets we are taxed on lose value? I'm guessing not.
It was always the women, and above all the young ones, who were the most bigoted adherents of the Party, the swallowers of slogans, the amateur spies and nosers−out of unorthodoxy
Rick,
The selling of an asset at a loss is also considered a tax loss and it is used to offset long or short term capital gains. However, one's personal residence, if sold for a loss cannot be used to offset long term capital gains.
ramage wrote: Rick,
The selling of an asset at a loss is also considered a tax loss and it is used to offset long or short term capital gains. However, one's personal residence, if sold for a loss cannot be used to offset long term capital gains.
Yes, I'm aware of that, but that's not what I'm asking. If my house appreciates $500k and the government decides to tax me on that gain that doesn't increase my bank balance, would they refund me that tax if the economy and housing market crashes and my home value drops to where it was prior to the appreciation? Of course they wouldn't.
If we go to a digital currency, we should expect to end up like the Chinese.
It was always the women, and above all the young ones, who were the most bigoted adherents of the Party, the swallowers of slogans, the amateur spies and nosers−out of unorthodoxy
Rick,
I would think that if such a wealth tax were to be adopted, the assessed value of you house minus whatever mortgage you have, would be the basis for the tax. This will encourage homeowners to borrow to the hilt on their home with Home Equity Loans, etc. rather than pay down their mortgage.
I say this because your wealth is assets minus debts.
Certainly does not encourage saving.
This proposal is on a par with student loan forgiveness. Both encourage dependence on the government.
Last edit: 09 Dec 2023 16:00 by ramage. Reason: Add'n commetn
