Okay, I don't agree with the "true tax rate" terminology or methodology. Not necessarily in response to you, just that article and for anyone passing by.
Changing values of assets are not income. Taxing net assets would require so much extra liquidity that may not exist, and if people wanted to be compliant with a wealth tax they will have to avoid illiquid assets which would be the most counterproductive fiscal and monetary policy for the economy. You want to get more people to go into illiquid assets to make them liquid, big yikes.
It is disingenuous trying to equate "$1 added to their net worth" to a wage worker adding $1 to their net worth, even if it was purely for explanation purposes. But here it is intentionally made to seem like something else. Its would make more sense to add a sales/excise tax to the buyers that push up the price of assets as they are the only ones moving liquid value around. Like a new uptick rule. Makes more sense to tax appraisers for illiquid assets if they uptick. I don't think any of these make real sense, but makes more sense than taxes people subject to the whims of the market.
Changing values of assets are not income. Taxing net assets would require so much extra liquidity that may not exist, and if people wanted to be compliant with a wealth tax they will have to avoid illiquid assets which would be the most counterproductive fiscal and monetary policy for the economy. You want to get more people to go into illiquid assets to make them liquid, big yikes.
It is disingenuous trying to equate "$1 added to their net worth" to a wage worker adding $1 to their net worth, even if it was purely for explanation purposes. But here it is intentionally made to seem like something else. Its would make more sense to add a sales/excise tax to the buyers that push up the price of assets as they are the only ones moving liquid value around. Like a new uptick rule. Makes more sense to tax appraisers for illiquid assets if they uptick. I don't think any of these make real sense, but makes more sense than taxes people subject to the whims of the market.