[bo1024]

What's wrong with a 20% tax? We who make a living from labor instead of capital pay more than that.

Paul tries to frame it as an increase of 20% in the tax rate, but in reality the increase is from 0% to 20%, and it's hard to see why that's unfair.

The reason I say it's currently 0% is of course that for the wealthy most of these 5% gains are unrealized (e.g. inflation in the value of their assets) and untaxed.

[stymaar]

> most of these 5% gains are unrealized (e.g. inflation in the value of their assets) and untaxed.

The worst part is that even when they need to realize their profits, they have schemes that allow them to avoid taxes (guess how much taxes Musk paid for his $20B realized profits from his Tesla shares he sold to buy Twitter).

[nullc]

But strangely politicians generally aren't pushing for targeted corrections to reduce those loopholes-- e.g. impugning realizing gains when you take a loan on assets beyond certain thresholds just as currently happens when you create a constructive sale with options trades. When assets are encumbered by loans or as collateral one could force the tax realization of gains at some rate which then adjusts the cost basis. The distortionary effect of this policy would be greatly diminished by the fact that everyone could just choose to not use their assets in this way.

Instead, the are running straight for the full on land grab while distracting people with the details of technical loopholes of comparatively small consequence.

[stymaar]

> But strangely politicians generally aren't pushing for targeted corrections to reduce those loopholes

You are just not paying attention enough. They do talk about loopholes, and push to close them during the legislative process.

They just don't talk about the loopholes details a lot because you don't get elected by talking about technical details in the tax code: “Force the tax realization of gains at some rate which then adjusts the cost basis when assets are encumbered by loans or as collateral” isn't a slogan that makes you win an election.

[kansface]

Income (returns) are not guaranteed. Go for progressive capital gains if that’s what you want. A wealth tax is a crazy bad idea.