The tax applies only to individuals with at least $100 million in wealth and mostly affects hedge fund managers.
t_d thread: https://archive.is/5pFXr
here’s fox news trying to convince people that the tax will mean that if your home goes up in value, the government will take your house: https://archive.is/Ay89M
“This would be the most crazy tax structure we have ever seen. It makes Venezuela look normal. It makes Russia look normal,” Gingrich stressed. “That speech last week in Raleigh, where [Harris] outlined her economic plan, that was crazy. That was so far to the left of Bernie Sanders that Gorbachev in Russia would have thought it was a radical speech.”
Think it’s for people with extremely high net worths ($100 million+).
It’s also a recipe for owning nothing. Nothing solid or fungible. You would look at a Thing, and say, this is going to cost me This Much. If its value goes up. And inflation is going to happen, so of course its numerical value is going to go up.
From t_d thread and the tax doesn’t apply to “things” it applies to stocks. And the bit about how you would consider how much owning a thing would cost over time including inflation is already how assets are valued.
“At least 100 million in wealth”
Lol. Lmao, even. Are libs allergic to reading?
Chuds especially. Dems sometimes read a lot, but only from their little silos of pseudo-intellectual, pseudo-progressive slop.
Hurting […] economic growth
How
They aren’t even shy in openly admitting their economy is just a three financial instruments in pyramidal shape coat
No, really, I want an explanation of the sort of “this would be like dropping/rising the federal reserve interest rate” or some shit like that.
I would enjoy to read a big “what if” from someone who actually understands how all that shit works cuz I don’t.
As I see it, it would disentivize stock-gambling obviously but idk how much would affect the trade of stocks for other more ¿“respectable”?reasons.
Oh boy time to nerd out over markets…
Off the top of my head this would diminish the income-producing incentive for holding stock. Things like holding to sell covered calls, holding for dividend payments, or holding to increase the credit lines you have access to would all be balanced against the new cost of holding.
If the tax is high enough we could see institutional investors dumping their shares in whatever way gives them the best tax advantages. This could lead to higher volume and higher volatility, which would probably benefit day traders and retail investors aka r/wallstreetbets. This could leads to more swingy market action, more big dips, and more violent price moves up and down.
If the market gets choppier then holding long-term assets like LEAPs becomes a bad idea. Those long term options will be worth less. Bonds and other more stable long term investments will become more desirable.
And for all the people fortunate enough to have an IRA or 401k, because god forbid we have pensions, those funds should be more actively managed going forward. You don’t want to set it and forget it and you need to be careful about when you start pulling money out of those funds. Someone in their 80s is going to be on the local news broke because their MSFT in their retirement account dropped 25% on a tax swing and now they can’t afford bread this week.
Yaay capitalism
Yeah I’m like 175% sure that they’d be able write off drops in the value of the stock.
My concern with this idea is, how exactly are they calculating the value each year? Average value over the calendar year, value at end of CY, value at YTD from the original purchase? If done wrong it could lead to gaming of the market such that when it’s time to calculate the value, the market always happens to be in a dip then, very odd.
Yeah I’m like 175% sure that they’d be able write off drops in the value of the stock.
Yeah, the “taxes on gains that no longer exist” argument, betrays their basic lack of understanding about how taxes on assets work. Do they just not understand that capital losses offset the tax burden of the gains?
I wonder if some of this confusion happens because most people don’t have exposure to anything beyond income and property taxes?
That’s exactly what it is. Everyone that complains about this has only ever had to deal with a W2 or 1099 form. They don’t understand that as you get richer, you have so many different avenues to avoid paying taxes.
Yep, it’s also why the politicians and their idiotic “balance the government spending like a household budget” talk has traction. Most people don’t understand how this stuff works at the higher echelons. This stuff goes way beyond what “kitchen table economics” can parse.
If I were president it would be calculated second by second but without correctiing by the fraction that second represents of the year (1/60x60x24x365) in order to tax them an astronomic sum
