It’ll get really interesting when the data gets breached and stealth wealth people have to start hiring private security.
For those who don’t know, “Box 3” is such a shitshow. The government wanted to tax wealth growth without tax payers having to calculate it exactly, so they set a fixed calculation rate for everyone. Your wealth will grow x% and the tax on that growth is another percentage. The fixed growth rate was on the low end and nobody complained. Then economic growth stagnated and the calculating rate was now higher than actual, so these rich fucks all went to court and demanded billions of ‘overpaid’ taxes. All the years they paid too little, not a peep. Now they’re upending the whole tax system. Stupid law and selfish rich pricks, what else is new
It’s no different than property tax on a home.
Not quite as bad as property tax on a home, since that taxes the total value rather than just the difference between what you used to have and have now.
I’m just trying to get ahead of the inevitable propaganda that will inevitably act as if this will cause the end of civilization because it will disincentivize investors or some other dumb narrative.
It will definitely affect incentives, which is worth considering imo. With property taxes, there is some controversy, since someone can be forced to sell if their home value balloons past their income level, although it also has arguably positive effects like disincentivizing holding on to hoards of vancant properties and doing nothing with them.
I don’t really know exactly how it would go, but my first thought is people would sell stocks more readily and often, both because they need to in order to cover taxes, and because selling triggering capital gains wouldn’t be a thing to worry about anymore.
That’s honestly the best analogy I’ve heard for them.
This is a great precedent to set.
I didn’t realize I had any money left
If you don’t have any money left, you probably also will not have any capital gains
