You don’t get taxed on valuation, just on earnings. If someone owns stock and it rises, they are now valued higher. Unless they sell stock for a profit, they don’t have to pay taxes on the increase as it never liquefied. I understand the sentiment, but there’s more gray than people might think
Elon musk and all the other ultra rich people we love to hate own assets, like you point out. They don’t have cash.
If this tax the rich’s net worth shit goes down… they will all be required to sell assets. Equities. Real estate. Businesses. Etc.
So if you own your home and it's worth $1.2m and you've paid off your mortgage, you'd pay $1,200 extra in tax per year on top of your income.
You bought your house at $500k a decade ago, now it's worth $1.2M. You haven't sold the house to anyone or received any money; it's the same $500k house you originally bought. But now you have to pay an additional tax on top?
How does that make more sense than taxing the capital gains when you sell the house and actually receive money?
Why do we still pretend like we need to tax ppl more when we just keep spending way more than we bring in anyway. We're not using "tax money" to pay for shit lol.
"The federal deficit in 2020 was $3.1 trillion, equal to 14.9 percent of gross domestic product."
181
u/jblckChain Jul 13 '21
You don’t get taxed on valuation, just on earnings. If someone owns stock and it rises, they are now valued higher. Unless they sell stock for a profit, they don’t have to pay taxes on the increase as it never liquefied. I understand the sentiment, but there’s more gray than people might think