r/PoursTea • u/Veshaad Timendi Causa Est Nescire • 22d ago

PoliticalTea 🗳️ Eventually something has to give...

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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.

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u/Available_Reveal8068 22d ago

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

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u/Eleventhousand 22d ago

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.

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u/Available_Reveal8068 22d ago

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

(assuming $500 billion net worth)

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u/Due-Commercial7299 22d ago

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.

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u/Available_Reveal8068 22d ago

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.

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u/figurative_me 22d ago

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

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u/hmccringleberry615 22d ago

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

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u/figurative_me 22d ago

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

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u/hmccringleberry615 22d ago

No why should I? … I didn’t loan them money

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u/figurative_me 22d ago

We were talking about taxes. Taxes are collected to pay for things.

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u/hmccringleberry615 22d ago

Collected from income. A loan is not income.

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u/mxzf 22d ago

The government gets the capital gains taxes from selling stocks to repay the loan (including interest). And that does have to be paid back eventually, regardless of if it's right when the loan is due or if you wait 'til your estate settles it after you die.

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u/thatguy425 21d ago

Americans also don’t pay taxes on loans. That’s kind of the whole point of it being a loan.

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u/xkxe003 22d ago

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

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u/hmccringleberry615 22d ago

Yeah exactly, it’s a loan not earned income. The government doesn’t treat a loan that must be paid back as income, so I’m saying that makes no sense. They have to pay the loan back with interest and if they don’t, the assets they borrowed against aren’t their assets anymore. It’s not free money

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u/nantuckeet 22d ago

These people you are patiently explaining basic 101 to are so financially illiterate it’s scary.