Supreme Court and the Tax Code

Whenever they do it, isn't property tax a so-called "unrealized gain."

 

No

 

Why not? You don't realize any gains on your property value unless you sell your house. I think people are trying to be too clever with this 'unrealized gains' BS lol. Seems like bunk to me especially if property taxes dont fit the bill and a wealth tax somehow does.

 

In texas it is reappraised every year automatically by taking nearby comparable sales and extrapolating a value onto your property, given certain factors such as sq footage and lot size.

 

A tax is not a gain.

 

No shit, we are talking about a tax on something that hasnt yet been transacted or sold, i.e. the appraised value of your property. Why is this functionally different than a "wealth tax?" According to tax nerds, it probably should only be taxed when I buy it and after I've sold it, not while I'm holding on to it.

 

local property taxes are based upon values, which means they do tax unrealized gains. The difference being it is done by local/state authorities. So in essence it is a form of wealth tax.

The argument seems to be whether the federal government has the right to do that.

 

Well there goes the "it would be too hard to administer, how could you even do it" argument, its only the core basis of state government funding

 

As I said it is routinely done in texas by automated model/formula. There is a process for appealing if you disagree with the computed value.

 

Here is the issue I have with the article in the OP. To me it is a stretch to say a taxation of unrepatriated income is a tax on unrealized income. That income has been realized, just not repatriated. Seems to me it is clearly “income” so it should be good re the 16th amendment.

 

Hell, Zillow uses algorithms. Practicality is not an argument. This is all so stupid

 

This would at least solve the growing societal problem of insufficient concentration of wealth and excessive egalitarianism shown by the temerity to negotiate higher wages. Plus, you want to make sure you keep a continual supply of Clarence Thomas vacation friends

 

You think appraising yachts, art, limited or minority interests in LLCs is easy to do? Annually? People who are worth 50+ million don’t typically have their wealth in just real estate wholly owned by them.

The IRS is currently questioning a client of mine about a business they closed 5 years ago! I wouldn’t say anything for that entity is easy.

 

I think appraising tangible property is fairly easy to do, people buy/sell yachts and art work enough to get comparable values and regular appraisals on things like that. Presumably those things are insured too, and insurers are pretty good at establishing value when settling claims or underwriting a risk. Values of fictional entities that exist only on paper are definitely more difficult.

 

We should destroy the tax code and write one that isn't 7000 pages long.

 

Exactly, it needs to be at least 10,000 pages long

 

I think it should be one sentence.

The sixteenth article of amendment to the Constitution of the United States is hereby repealed.

 

Well, if we are announcing the end of the country the next day, sure

 

That's what is happening anyway. Just much slower.

 

New tax code, no deductions :;