Do you support tax on unrealized gains?

[GaryPinC]

39 minutes ago, sherpa said:

 

Assessed value is an unrealized capital gain.

 

Somebody is appraising the value, without a transaction, (thus the "unrealized" nomenclature), and taxing us based on that "unrealized" value.

 

Capital gains are an appreciation of assets. It doesn't matter what the asset is.

Thus, the unrealized appreciation of a property, allowing the local gov to charge more tax, is an unrealized capital gains tax.

Appraised value and assessed value are two different things.    Appraised value (market value) determines the change from the previous appraisal to give gains or loss.

 

Assessed value (taxable value) is part of what determines your taxes in conjunction with the property tax rate.  Assessed value is typically lower than appraised value and can change yearly at the local legislative level.  Property tax rates can change yearly for things such as school levies.  You can appeal and contest the appraisal value directly to the county auditor.

 

Therefore, your property taxes DO NOT have to change in direct proportion to your unrealized gains or losses, rendering your argument incorrect.  It's an assessed value/tax rate change not an unrealized gains tax.

[Orlando Buffalo]

Any tax on unrealized gains is so ridiculous it is hard to see how anyone who has ever made money through any investment could agree with it. It literally would make it so that you have to hope your investments don't ever take off too quickly. The biggest issue is what happens if the stock spikes and drops quickly like GameStop then depending on timing of spike and drop you could responsible for tax payment without any money left to pay it.

[All_Pro_Bills]

The problem with an unrealized gain tax is that unlike real estate capital is mobile. Funds will simply close up shop and move somewhere more hospitable. Maybe London, Hong Kong. Shanghai. Dubai, other places. 

[OrangeBills]

9 hours ago, The Frankish Reich said:

True.

It interests me only because it shows how stuck we are in the USA, thanks to historical inertia, with an extraordinarily complex, clumsy, and expensive system of raising government revenue. We section off (in theory, not in practice) social security and Medicaid from general revenues/expenditures. We rely only on the devices that have existed for a century or more: customs duties, estate taxes, capital gains taxes, progressive income taxes. We don't consider a VAT because everyone is scared to go there, and probably for good reason - I have to assume we'd never have a stand-alone VAT, but that it would be tacked onto existing taxes. We'll never mess with the fiction of the SS trust fund. So the ideas we're stuck with in this artificially limited debate are all bad ones, like those discussed here.

 

Hopeless

 

We raise too much money, thats the problem

[All_Pro_Bills]

7 hours ago, OrangeBills said:

 

Hopeless

 

We raise too much money, thats the problem

Yup. The debt exceeds $35 trillion and the Interest on that debt is approaching $1 trillion and these idiots want to borrow and spend more. The only possible outcome to this path is insolvency and inflation. The government and people supporting all this spending are delusional.

And these tax gimmicks won't put a dent in the number because they'll just spend more

 

Edited August 22 by All_Pro_Bills