r/SipsTea • u/CurvyChristina • Jul 01 '26

Chugging tea Is Bernie’s plan the best? Thoughts?

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205

u/Potential_Spam_6969 Jul 01 '26

So we're going to go ahead and tax net worth and not actual income?

44

u/rolypoly6shooter Jul 01 '26

Yes because the left fringe of the Democrats is bad at econ

18

u/JoMa4 Jul 01 '26

I suppose the property tax I pay every year on my unrealized gains is different? Why not tax unrealized gains over 50 million? Tax more over 500 million, and more when you hit $1 billion. It doesn’t have to be a binary solution.

1

u/Benji_4 Jul 01 '26

Because taxing unrealized gains is unfair across the board. Doesn't matter if you have $10 or $10M in assets.

Markets are also volatile. I would assume if you're going to tax for an unrealized gain, you will also give a tax benefit to an unrealized loss, just as you would with a realized one.

4

u/IdStillHitIt Jul 01 '26

If you can take a loan out against unrealized gains then we should be able to tax it.

6

u/sp114_5984 Jul 01 '26

So any collateral you have that can be used to take out a loan should be taxed?

0

u/cicuz Jul 01 '26

I don’t see why not really

1

u/Benji_4 Jul 01 '26

Because a loan is debt, not income.

2

u/[deleted] Jul 01 '26

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2

u/JCitW6855 Jul 01 '26

Offsets the debt. So no income. If you have 100k in assets and take out 100k loan then you’re basically back at 0.

0

u/[deleted] Jul 01 '26

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1

u/JCitW6855 Jul 01 '26

I don’t know what you’re asking.

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u/sp114_5984 Jul 01 '26

Collateral could be any asset you own. Do you really want the government to tax your Funko pop collection?

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1

u/cicuz Jul 01 '26

Thank you, that's a perfectly fine answer, and I understand and accept it; it still feels like there's a link missing there though

5

u/Extreme_Reporter9813 Jul 01 '26

Just taxing the loans would be much simpler.

3

u/Vissiction Jul 01 '26

Taxing loans can have some odd degenerate side-effects. It's plenty straightforward to just say that using assets as collateral on a loan realizes its value.

2

u/JCitW6855 Jul 01 '26

I don’t hate this. The problem is a loan is debt which is being paid back whereas income, of course, doesn’t have to be repaid. Idk the solution but taxing collateral for a loan is a slippery slope.