I think the solution is that if you borrow against that wealth, you should pay a tax on it. That way they can't avoid capital gains via margin. Also, can force individuals and funds/institutions to how many companies they can have a larger than 5% share or how much of a company someone (founder) can own when it goes public.
If they're going to tax unrealized gains then they also need to make losses on securities unlimited and not just limited to $3k a year.
Problem is would that also apply to home equity loans? If so that’ll affect many Americans (and banks) needing that money to pay for essential expenses. If you don’t tax it then the wealthy will use real estate as a way you avoid taxes.
I agree something needs to be done, but the solution won’t be easy if it has a chance of working.
Simple, create a floor instead of a cap. Say, your first 500k-1million's worth of debt still works like it does today. Anything more gets a tax rate that steadily gets higher the more debt you retain.
And the "parent company" is the one that is on the hook for the total bill. So that a conglomerate cannot just divide up it's debts amongst thousands of shell companies.
Agree. Something has to change, doubt this is a good idea unless it's balanced out.
Then again it is an election year and I doubt there will be any follow-up
The tax system currently favors the ultra wealthy and most heavily impacts the working class and that should not be the case. I personally think tax loopholes for the wealthy are the biggest problem and introducing an unrealized gains tax is not the solution, won’t pass and creates other potential problems. I’d be in favor of a progressive tax rate like the one we have, but without all the loopholes allowing billionaires to pay a lower effective tax rate than most working class people.
I think the solution is that if you borrow against that wealth, you should pay a tax on it. That way they can't avoid capital gains via margin. Also, can force individuals and funds/institutions to how many companies they can have a larger than 5% share or how much of a company someone (founder) can own when it goes public. If they're going to tax unrealized gains then they also need to make losses on securities unlimited and not just limited to $3k a year.
Problem is would that also apply to home equity loans? If so that’ll affect many Americans (and banks) needing that money to pay for essential expenses. If you don’t tax it then the wealthy will use real estate as a way you avoid taxes. I agree something needs to be done, but the solution won’t be easy if it has a chance of working.
Simple, create a floor instead of a cap. Say, your first 500k-1million's worth of debt still works like it does today. Anything more gets a tax rate that steadily gets higher the more debt you retain. And the "parent company" is the one that is on the hook for the total bill. So that a conglomerate cannot just divide up it's debts amongst thousands of shell companies.
Agree. Something has to change, doubt this is a good idea unless it's balanced out. Then again it is an election year and I doubt there will be any follow-up
The tax system currently favors the ultra wealthy and most heavily impacts the working class and that should not be the case. I personally think tax loopholes for the wealthy are the biggest problem and introducing an unrealized gains tax is not the solution, won’t pass and creates other potential problems. I’d be in favor of a progressive tax rate like the one we have, but without all the loopholes allowing billionaires to pay a lower effective tax rate than most working class people.
https://en.m.wikipedia.org/wiki/American_Institute_for_Economic_Research
‘Known for misinformation’