Democrats move to finalize new ‘billionaire’ tax proposal, targeting 700 wealthiest Americans

Discussion in 'Economics' started by ipatent, Oct 23, 2021.

  1. ipatent

    ipatent

    Democrats move to finalize new ‘billionaire’ tax proposal, targeting 700 wealthiest Americans

    Currently, wealthy Americans do not have to pay taxes on vast accumulations of wealth because they are taxed only once an asset is sold. Billionaires often borrow against their non-taxed assets, allowing them to spend enormous sums of money while effectively paying very low taxes relative to their income and worth.

    Under the “Billionaire Income Tax” proposal, a summary of which was obtained by The Washington Post, the federal government would require billionaires to pay taxes on the increased value of assets such as stocks on an annual basis, regardless of whether they sell those assets. Billionaires would also be able to take deductions for any annual loss in value of those assets.

    The plan would also set up a system for taxing assets that are not easily tradable, such as real estate. The tax would apply to billionaires and people earning more than $100 million in income three years in a row.
     
    MoreLeverage likes this.
  2. R1234

    R1234

    I hope this moves their attention away from the proposed IRA changes. They were planning to punish us regular people and our retirement savings because of billionaire Peter Thiel. God bless Senator Sinema. I hope she stands her ground against the Progressives and the CNN smear tactics.
     
    murray t turtle and MoreLeverage like this.
  3. ipatent

    ipatent

    Sounds like a rational proposal.
     
    Windlesham1 and comagnum like this.
  4. piezoe

    piezoe

    Something is not making sense to me. You can borrow against assets as collateral and live on the borrowed money, but why??? No bank will loan to you unless you have an income stream from which to pay back the loan. True, the interest would be much less than the tax rate would be were you to sell the same assets. But you must pay the borrowed money back and to do that you will need income which you will be taxed on. If on the other hand you sell assets you will be paying long term capital gains tax which should be lower than your income tax rates.

    I think what Trump does, on the other hand, is start businesses set up as LLCs using borrowed and/or investor's money, then out of the borrowed or investors money his company is paid to manage the businesses, and in turn his company pays him a salary or fee. When the businesses fail, the bank and/or investors become bag holders. He must then dream up a new businesses and round up more suckers so he can keep his income stream coming from newly borrowed money. He must have started hundreds of businesses this way, virtually all bankrupt. He has been a party to over 4000 lawsuits and I think his company has set up literally hundreds of LLC's. At one time LLC's his company owned defaulted on loans from 72 different U.S. Banks.
     
    Last edited: Oct 23, 2021
  5. If it is rational for Billionaires then its rational for everyone else.

    Once the precedent is set they will keep lowering the threshold until eventually it becomes normal and everyone is caught.
     
  6. newwurldmn

    newwurldmn

    And the Russians keep lending him money because it’s a way to launder it out of their country.
     
    murray t turtle and piezoe like this.
  7. piezoe

    piezoe

    And too, Putin is a good psychologist. He's knows Donald can be bought, and easily so. When Donald makes money it reinforces his sense of being brilliant, or in his own words, of being "a stable genius."
     
    Windlesham1 likes this.
  8. AR15

    AR15

    wow this is actually really sad. hope it doesnt go through
     
    DoctorProfits likes this.
  9. destriero

    destriero


    No worries; they won't touch your SSDI.
     
  10. ipatent

    ipatent

    #10     Oct 24, 2021