[Epa095]

Progressive taxes hit wage earners, while its the owners who will reap the benefits of AI. We won't get a share of the fruits without solving how to properly tax wealth(in a world where money is power, and its trivial for rich people to move to a different tax regime), which unfortunately seems tabu in large parts of the western world.

[BrenBarn]

That's true, although "progressive taxes" can be construed more broadly. Taxes on unrealized capital gains would be a start.

[sofixa]

> Taxes on unrealized capital gains would be a start

A start to what? There is no way of taxing unrealised capital gains that makes sense. You're taxing theoretical value that may or may not actually exist. Rebates (e.g. you're taxed on theoretical current value, but when you realise the actual gain, you get back the difference if there is any) just moves the problem around, makes everything complicated, and penalises attempting growth.

[bdangubic]

> There is no way of taxing unrealised capital gains that makes sense.

There is - tax it when it is being used as realized gain (e.g. when you get a loan like our billionaires do). fine to leave it alone as unrealized and not be taxed but as soon as you use it as real/tangible thing you gotta pay taxes, it is that simple

[BrenBarn]

> You're taxing theoretical value that may or may not actually exist.

If it's real enough to, say, use it as collateral for a loan, it's real enough to tax.

> penalises attempting growth

There is a lot of growth going on that should absolutely be penalized.

[Scarblac]

It's not hard. Tax the amount the stocks are valued at at january 1.

Make exceptions for investments in illiquid things.

[sofixa]

Ok, and on the 2nd the price crashes, company goes bankrupt, stock is worth zero. You were taxes on theoretical value that you can't sell at to pay that tax.

What then?

[BrenBarn]

For me, a lot of these issues become immaterial if the threshold is high enough. If the threshold for a particular tax is assets over $100 million, or a billion, then the answer can just be "you are totally screwed" and I'm basically fine with that. If you don't want that risk, just don't get that rich.

[squeaky-clean]

This would destroy every retirement investment vehicle for the middle class more than it would affect the 1%

[BrenBarn]

That can be mitigated by setting high thresholds on the whole process (e.g., the tax doesn't apply if your total net worth is under $10 million).

[squeaky-clean]

Now no one has a billion dollars but they have 100 companies they control each worth 10 million.

These lawsuits have to be designed with the idea that the people with the most resources will try to exploit them, and the people with the least resources will be unable to.

[dontwannahearit]

That doesn't sound like it could be gamed, at all.

[slikc]

Great, i don'trust the government with my pension retirement. Put all my life savings(that i already paid taxes on) on an investment portfolio. Now the government wants a cut on my unrealized gains as well. Do you realize each time the money changes hands it gets taxed? Do you trust the gov to be as effective and as efficent with that money att all?