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

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

  1. piezoe

    piezoe

    But why would you intentionally do that?
     
    #21     Oct 25, 2021
  2. Overnight

    Overnight

    Gee, I dunno'. Remember like 12 years ago? Sub-prime?
     
    #22     Oct 25, 2021
    Windlesham1 likes this.
  3. piezoe

    piezoe

    It doesn't matter whether the bank needs to see an income stream or not. You have to pay back the loan or the bank will sell your collateral.
     
    #23     Oct 25, 2021
  4. piezoe

    piezoe

     
    #24     Oct 25, 2021
  5. piezoe

    piezoe

    Well I started to write something, but then thinking about this gave me a headache. I think in scheme two the 40% estate tax on estates over about 12 million is going to be painful. I quess in scheme two you're able to borrow at way less than the cap gains tax? The step up saves the cap gains tax on the 50 million residual plus ROI - interest over the intervening 25 years, and you should be ahead despite 40% estate tax you have to pay regardless, is that right?
     
    #25     Oct 26, 2021
  6. piezoe

    piezoe

     
    #26     Oct 26, 2021
  7. Millionaire

    Millionaire

    Musk making the same point i did above:

    The world’s richest man predicted that the Democrats’ plan to tax the wealthy will eventually expand to include new levies on middle class Americans.

    ‘Eventually, they run out of other people’s money and then they come for you,’ Musk tweeted.
     
    Last edited: Oct 26, 2021
    #27     Oct 26, 2021
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  8. ipatent

    ipatent

    If the billionaire tax survives, it may face legal challenges. Here’s why

    But the bigger issue may be the definition of billionaire and net worth calculation, Hemel said, because if it’s a “direct tax,” it needs to be apportioned, or split up among states based on population, and isn’t possible since some places don’t have billionaires.

    Meanwhile, the party is also weighing a surtax on millionaires making more than $10 million, a corporate minimum tax and increased bank reporting.


     
    #28     Oct 27, 2021
  9. ipatent

    ipatent

  10. Sig

    Sig

    Now they've apparently switched to a tax hitting those earning over $10M, $25M, and receiving income from an S corp. A bit crazy that they switched from caring about billionaires who are sheltering their billions with this combination of step-up basis and loaning themselves money to caring about lawyers, doctors, and small businesses with S corps and people who sell their passthrough company for more than $10M, which are really the only people who make more than $10M in income vice capital gains at this point. Not that we can't afford it and it's actually better policy even if it does impact me, it's just funny that Manchin was uncomfortable with "targeting" the richest man on earth who paid paid less than $70,000 in federal income taxes between 2015 and 2017 and nothing in 2018 but apparently he's fine with this.
     
    #30     Oct 28, 2021
    DoctorProfits and ipatent like this.