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by potlee
3238 days ago
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> What part of "unrealized" do you not get? I don't think you understand any part of what "unrealized" means. "unrealized" as it relates to taxation simply means that the asset has not beed sold. > I value your HN username at $10 billion What you might personally value my username and what the market values AMZN stock at bear no similarity Besides 40% percent is a insane amount, most wealth tax systems are well under 2%. |
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No shit... At what point did I allude to it being otherwise?
> What you might personally value my username and what the market values AMZN stock at bear no similarity
Most people don't value Amazon at its current price. The majority of people value it lower or higher. A thin margin of people trade within their sliver of acceptable prices setting the current day trading price. To tax someone at the value a small third party ascribes is so insanely stupid it beggars belief.
The "market cap" of a company has NO BASIS in reality. That's why stock prices fluctuate like crazy for all but the biggest and most well known companies.
> Besides 40% percent is a insane amount, most wealth tax systems are well under 2%.
When do you pay this 2% tax? Every year? Say you own a $500,000 home -- not unreasonable in California. They're going to have to pay $10,000 every year for that home, even if they have no income. Even if they're living off their savings or they're retired and on fixed income.
Let's say some couple bought their home in the 50's for $30k. Today the value of the home is $500k. They're on a fixed income and can't afford to pay $10k in taxes. Are you going to evict them for being "wealthy"? Just because the market values their house at $500k as of this moment?
Boy, I can't wait for people to pump and dump stocks on tax day. It's going to be great... Or I can't wait for people to trash their homes to decrease the value and lower their tax burden.
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Let's take a step back. I just made an offer on your username for $10 billion. Because no one else made an offer the current market value is $10 billion. It will remain $10 billion until someone else makes an offer. At which point, how you calculate the tax burden is up to you. Average? Weighted average? Moving weighted average? Ascending triangle? Support and resistance? Any of the other batshit technical analysis methods? What about the time period? Are you taxing the wealth of the past day, month, year, decade?
"But!", you'll say, "You're just one guy, you don't get to determine the market value of my username". And sadly for you, that's exactly what I get to do. Houses have market values even though a single digit number of people actually bid on them within a 20 year time period. Small cap stocks may only trade a few shares a day.
Your username has had more offers in the past 10 years than my parents house has. Their house has a market value, and now, so does your username. Pay your taxes.