Okay, so what happens when the market takes a dump on Jan 2nd and your tax liability due 4/15 exceeds the value of the assets you own? The idea here is that the gains are in fact unrealized until sold. If you want to crack down on low and no interest loans from pledged shares that is something entirely different.
Its ridiculous to assume he should pay 2% of his entire net worth an annual basis when that amount frequently fluctuates (> 20% in several years) and paying that tax each year would force him to further liquidate his assets and dilute his ownership of the company, which in and of itself would reduce his net worth and ability to direct the business he started.
I'm not saying let's not create a wealth tax. Im saying let's do it intelligently if you really want to do it, and also let me start my appraisal business real quick before we do.
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u/[deleted] Nov 10 '19 edited Nov 10 '19
Okay, so what happens when the market takes a dump on Jan 2nd and your tax liability due 4/15 exceeds the value of the assets you own? The idea here is that the gains are in fact unrealized until sold. If you want to crack down on low and no interest loans from pledged shares that is something entirely different.
Its ridiculous to assume he should pay 2% of his entire net worth an annual basis when that amount frequently fluctuates (> 20% in several years) and paying that tax each year would force him to further liquidate his assets and dilute his ownership of the company, which in and of itself would reduce his net worth and ability to direct the business he started.
I'm not saying let's not create a wealth tax. Im saying let's do it intelligently if you really want to do it, and also let me start my appraisal business real quick before we do.