Kamala’s $5 Trillion Tax Plan is Scary

https://www.axios.com/2024/08/23/kamala-harris-unrealized-capital-gains-tax

am I missing something? This really only impacts a small subset of the very rich.

• It applies only to individuals with at least $100 million in wealth who do not pay at least a 25% tax rate on their income (inclusive of unrealized capital gains). Payments can be spread out over subsequent years.
• Within that $100 million club, you'd only pay taxes on unrealized capital gains if at least 80% of your wealth is in tradeable assets (i.e., not shares of private startups or real estate). One caveat for this illiquid group is that there would be a deferred tax of up to 10% on unrealized capital gains upon exit.
• In short, it would not apply to most startup founders or investors. If any group should be tweeting mad face emojis, it's top hedge fund managers.
  
  
• Plus, the vast majority of startup investment comes via institutions, not individuals. And if the carried interest loophole is ever closed, which Harris also supports via Biden, then it wouldn't be a capital gain anyway.

 

If you are scared of this, I think we need to start asking you if we can borrow some money

 

Everyone should be scared of the Project 2025 tax plan. It would raise taxes by about $2,000 for middle class families before they even eliminate the child tax credit which they also want to do.

 

Kamala and Co are the reason why we need to clean house. Everyone needs to go. Instead of overhauling the tax code, she wants to add to it even more rules that create 50 million more loop holes that the very same wealthy guys are going to exploit. Why? Because it's all a ruse. Kamala doesn't want to tax the rich; it's all a word play to get votes. Why else do the rich want to give her money? It's because they stand to gain more. Until the tax code is overhauled, killing all of the trillion loop holes already found in it, nothing really will happen. The fact is, even when the tax brackets had a 90% tax at the highest tier, only 2 people were taxed. It cost more to change the tax code than tax receipts collected from the change.

 

Can’t take any Corp tax policy seriously without a QDMTT. It’s basic common sense with P2 global min tax roll-out and putting US companies in the best competitive position against foreign companies operating in the US.

 

At least she isn’t trying to hide her agenda.
The progressives are simply NOT a reasonable option.
How can anyone vote to crush our economy?
Possibly if you just want to have a beer with your president, then maybe Kamala is the better candidate.
Other than that…no reasonable, rational person would vote for kooky Kamala.

 

Yup I was just reading about capital gains tax in that section which you indicated as being the death of the economy.
The tax rate on corps was 35% just a little while ago and we were fine.

 

Also stock buybacks only benefit a few not the many - Profits Without Prosperity
Why Stock Buybacks Are Dangerous for the Economy
https://www.cbpp.org/blog/record-stock-buybacks-bolster-case-for-raising-corporate-tax-rate

and lol at white knighting for oil companies.not that they made hundreds of billions last year. Big Oil Made Billions Amidst the Hottest Year on Record

 

Why would anyone want more funds going to an entity that is inefficient? The government has proven, regardless of party, that it doesn’t know what it’s doing.

 

As usual with all these jagoffs, just pray for solid congressional gridlock.

 

Strongly disagree with the unrealized capital gains tax though it would only impact a small number of Americans. The stance on unrealized capital gains is a philosophical change in the way our government taxes the people. In no circumstance can I support the government taking money out of people’s pocket for dollars they haven’t received yet (for the case of a company founder that took a company public and holds over $100mm of stock).

Other billionaires that have already paid ordinary income tax on their wages and / or normal capital gains on the sale of a company, and then have placed $100mm in the market should not be taxed again until they sell the stock. Is the government going to come in a seize a founders stock if they have over $100mm in unrealized capital gains in liquid positions but not $25mm of cash to pay the absurd tax? Would they have to sell some of their position in their company, pay normal cap gains, then use the post-tax proceeds to pay more taxes?

The only rationale argument for this is that Jeff Bezos and his advisors found a loophole that nearly all billionaires use. They borrow against the gains on their stock and don’t pay taxes on the cash inflow from the loans. I don’t support closing that loophole as borrowings will have to be repaid when the shares are sold and the government will collect tax on capital gains at that time, so why should the government tax a short-term loan?

However, you could make an argument the abuse of that loophole is so absurd that it should be closed. But simply taxing any amount of unrealized gains directly is absurd and I don’t believe any country in the world has a tax like this (I could be wrong on that point, but Google says I am not).

It’s a losing strategy for Kamala also. 75% of the country disapproved of this in 2021. She needs to use a different method to show unionized workers she sides with them over big bad business owners.

The Psychology of Taxing Capital Income: Evidence from a Survey Experiment on the Realization Rule by Zachary D. Liscow, Edward G. Fox :: SSRN

 

Billionaires aren't particularly efficient either. Might as well go to a thing we have theoretical control over.

 

With government…