Don’t wait for billionaires to sell their stock. Tax their riches now
washingtonpost.com
Don’t wait for billionaires to sell their stock. Tax their riches now
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Re: Don’t wait for billionaires to sell their stock. Tax their riches now
#2Right in the article they say that these billionaires are consuming their unrealized gains. Wouldn’t a consumption tax on luxury items be more effective and efficient?
Re: Don’t wait for billionaires to sell their stock. Tax their riches now
#3Right in the article they say that these billionaires are consuming their unrealized gains. Wouldn’t a consumption tax on luxury items be more effective and efficient?
They try such a thing in Germany by having different rates of VAT (~sales tax) for different products. Basics (such as food) being on the lower rate, and luxury items on the higher end.
Not sure if it actually works well or is overly complex nowadays.
Re: Don’t wait for billionaires to sell their stock. Tax their riches now
#4Right in the article they say that these billionaires are consuming their unrealized gains. Wouldn’t a consumption tax on luxury items be more effective and efficient?
They try such a thing in Germany by having different rates of VAT (~sales tax) for different products. Basics (such as food) being on the lower rate, and luxury items on the higher end. Not sure if it actually works well or is overly complex nowadays.
VAT always has felt overly complicated to me. At least everytime I try to look at and understand it. It feels like it's a potentially good solution but calling it VAT will cause issues.
Re: Don’t wait for billionaires to sell their stock. Tax their riches now
#5Re: Don’t wait for billionaires to sell their stock. Tax their riches now
#6I would think at a minimum that the government would have to accept shares if the taxpayer elected that.
You can't (IMO) reasonably ask someone to pay a cash tax based on a notional value for a transaction that never happened as that notional value will not account for the inevitable execution slippage that will happen if the shares are actually sold later. Let the government eat that slippage.
Re: Don’t wait for billionaires to sell their stock. Tax their riches now
#7I would think at a minimum that the government would have to accept shares if the taxpayer elected that. You can't (IMO) reasonably ask someone to pay a cash tax based on a notional value for a transaction that never happened as that notional value will not account for the inevitable execution slippage that will happen if the shares are actually sold later. Let the government eat that slippage.
if you were paid equity compensation, the gov't currently does not accept the actual share as tax payment, but cash only. Therefore, you have to sell a portion to realize the capital of said share compensation.
I think the people should not ask, nor accept equity payment as taxation.
I also think that taxation should only be on income. Wealth tax doesn't work well, and only hurts those who would use that wealth to produce more wealth (to the detriment of all). Taxing consumption is the best, but that's a little regressive, so taxing income is the next best thing.
Re: Don’t wait for billionaires to sell their stock. Tax their riches now
#8Right in the article they say that these billionaires are consuming their unrealized gains. Wouldn’t a consumption tax on luxury items be more effective and efficient?
> consuming their unrealized gains.
they are getting loans using their unrealized capital gains as collateral. And these loans are not interest free, and would have to be paid back at some point in the future. And in order to pay the interest on the loan, they will have to realize _some_ gains as income. So that gets taxed.
Is it better that these billionaires don't obtain their mansions and yachts, or that they do and don't get taxed?
Re: Don’t wait for billionaires to sell their stock. Tax their riches now
#9Earlier quoted context omitted.
They try such a thing in Germany by having different rates of VAT (~sales tax) for different products. Basics (such as food) being on the lower rate, and luxury items on the higher end. Not sure if it actually works well or is overly complex nowadays.
VAT always has felt overly complicated to me. At least everytime I try to look at and understand it. It feels like it's a potentially good solution but calling it VAT will cause issues.
From a consumer perspective VAT as implemented in Europe much simpler than sales tax in the US. The price advertised is actually the price you pay.
As a business it’s really not that much more complex. Add VAT to all the invoices you send out. Keep track of how much was charged to you by your suppliers. Pay the difference to the tax man.
Re: Don’t wait for billionaires to sell their stock. Tax their riches now
#10I would think at a minimum that the government would have to accept shares if the taxpayer elected that. You can't (IMO) reasonably ask someone to pay a cash tax based on a notional value for a transaction that never happened as that notional value will not account for the inevitable execution slippage that will happen if the shares are actually sold later. Let the government eat that slippage.
if you were paid equity compensation, the gov't currently does not accept the actual share as tax payment, but cash only. Therefore, you have to sell a portion to realize the capital of said share compensation. I think the people should not ask, nor accept equity payment as taxation. I also think that taxation should only be on income. Wealth tax doesn't work well, and only hurts those who would use that wealth to pr…
>I think the people should not ask, nor accept equity payment as taxation.
As a matter of historical fact, governments do sometimes take equity in something, in exchange for what's owed. Like with the financial crisis bailouts.
It's a normal thing among and between capitalists, but also when the government interacts with them. I'm unclear on what principle would forbid it, when you start from the assumption that it's normal, rather than unheard of.