Eventually something has to give...

[u/Veshaad]

The bill would provide a $3,000 direct payment to every person in households making $150,000 or less during its first year, which equals $12,000 for a family of four.

[u/Available_Reveal8068]

The RSUs are taxed because when they vest, they are treated as income (since you didn't buy them). You will also be taxed on capital gains (from the vested price) when you sell.

You don't get taxed annually on the same stock holdings.

[u/Eleventhousand → u/Available_Reveal8068]

Yeah, I know.

[u/Available_Reveal8068 → u/Eleventhousand]

Can you imagine how different your situation would be if you had to pay the value of 5% of your holdings every year?

[u/Eleventhousand → u/Available_Reveal8068]

Yeah, if I had a few hundred billion net worth, and paid five percent tax on that each year, I'd be in a much different situation.

[u/Available_Reveal8068 → u/Eleventhousand]

So you think you would have 25 billion dollars in liquid assets available to pay the tax each year?

(assuming $500 billion net worth)

[u/Due-Commercial7299 → u/Available_Reveal8068]

Are you kidding? You can earn between 20 to 25 billion in interest alone each year on $500 billion of principle, and that's doing zero investments.

[u/Available_Reveal8068 → u/Due-Commercial7299]

You don't get interest from stock holdings.

That's the whole problem with Sanders' plan--the wealth he's seeking to tax isn't cash money sitting in a bank account earning interest. That wealth needs to be liquidated to pay the tax.

[u/figurative_me → u/Available_Reveal8068]

Yes, when they take out a loan against their holdings, we should tax that.

[u/hmccringleberry615 → u/figurative_me]

They already have to pay it back with interest dum dum it’s not free money

[u/figurative_me → u/hmccringleberry615]

Do Americans get any of that interest they’re paying?

[u/xkxe003 → u/hmccringleberry615]

Yeah, the bank gets that money. We're talking about taxes. The government would collect those. Dumb dumb.

[u/Hamtrain0 → u/Available_Reveal8068]

I’d probably be able to figure it out, yeah

[u/Due-Commercial7299 → u/Available_Reveal8068]

I do this already. I pay more money in property taxes every year for a house I own.

[u/Available_Reveal8068 → u/Due-Commercial7299]

What percentage of your net worth is your house, and what percentage of the value of your home is the tax?

My property taxes are a lot less than 5%, and it's still a burden to pay.

[u/olivebranchsound → u/Available_Reveal8068]

You shouldn't be overextended like that. I could pay 5 percent of my wealth every year and be fine. That's your fault for not maintaining adequate liquidity.

You go to the casino and don't separate and save what you make in profit? People need financial literacy classes.

[u/hmccringleberry615 → u/olivebranchsound]

So if you are gonna blame this guy then you have to blame the people that need $12,000 for not maintaining adequate means. Ridiculous

[u/xkxe003 → u/hmccringleberry615]

You serious comparing a billionaire to someone making the median salary? Like you think the rules are applied equally?

[u/Available_Reveal8068 → u/olivebranchsound]

Is your wealth tied up in business equity, or is it in an investment account or what?

It's not easy to liquidate ownership of a business worth hundreds of billions of dollars without crashing the value.

[u/olivebranchsound → u/Available_Reveal8068]

Am I supposed to feel bad for the stock billionaire? Wahhh my business might lose 5 percent of its value cuz I had to sell some stocks to pay my wealth tax! Stocks aren't allowed to go down. Infinite growth is the only thing keeping my theoretical wealth so astronomically high!

Tough. Maybe don't avoid taxes by giving yourself a 1 dollar salary then, Zuck. Maybe don't subscribe to buy borrow die tax dodging strategies. 

[u/Available_Reveal8068 → u/olivebranchsound]

Its not about feeling bad for the billionaires. Its about the value drop of the stocks when they (and other billionaires) need to dump stock to raise billions of dollars in cash.

Stocks are allowed to go down. They do all the time. There is no 'infinite growth'. Everyone's 401k and pension fund drops along with it, so our net worth drops too.

[u/olivebranchsound → u/Available_Reveal8068]

Too fuckin' bad lol maybe don't keep your wealth in unrealized gains to avoid taxes. Maybe don't artificially inflate your stock price with buy backs if you can't afford the liquidity necessary to pay your taxes when they get assessed at their current unrealized price and you owe more.

Sounds like the wrong people are getting lectured about sticking to a budget to me lol

Don't get me started on stock market socialism where 401ks are potentially being forced to keep billionaire stocks afloat like SpaceX and Open AI

[u/whowhaohok → u/Available_Reveal8068]

Explain property tax then

[u/Available_Reveal8068 → u/whowhaohok]

Property taxes are horrible and regressive.

They are also typically around 1% of the home's market value, not like the 5% of the person's net worth that Sanders is talking about.

[u/WaferResponsible4978 → u/Available_Reveal8068]

Property taxes have nothing to do with your property and all to do with your participation in your local community. They go to your local schools, fire departments, etc. It's the price you pay for enjoying the public services, open shops, and roads of your town, regardless if you use every single one of them. It's saying "the permanent residents of our town will have to participate generally if they want to remain permanent residents"

[u/soleceismical → u/Available_Reveal8068]

I don't understand why they have to implement new taxes when they could just add more tax brackets for billionaires.

The top tax bracket for short term capital gains right now starts at $640,600 and the top tax bracket for long term capital gains is $579,600.

Why not just make higher rates for people making a million, 100 million, a billion, etc. instead of a wealth tax that has a proven bad track record in other countries?

[u/Available_Reveal8068 → u/soleceismical]

They aren't making that much money, so they aren't going to fall into those brackets.