Comment on How would you actually tax the ultra wealthy?

Dagamant@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

• Trex202@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

  Then every 5 years or so, force everyone to “realize” their stock value for taxation

  source

  • howrar@lemmy.ca ⁨2⁩ ⁨weeks⁩ ago

    I feel like that just overcomplicates things. As long as they can’t use the money, they’re not causing harm, right?

    If you want a more continuous stream of income, a wealth tax would make more sense.

    source

    • Trex202@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

      But they are using the money. It’s invested, it’s supporting a profitable cause, driving an agenda

      source
• damnedfurry@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

  But collateral isn’t used as part of a transaction unless the loan is defaulted on.

  source
• skankhunt42@lemmy.ca ⁨2⁩ ⁨weeks⁩ ago

  I’ve heard this before but don’t understand how it works… Eventually they’ll need to pay it off, no? So they sell stocks to pay the loan?

  source

  • TubularTittyFrog@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

    yeah, but by the time you have to pay it back your stock has accrued more value, so you just take out another loan.

    source
  • whoxtank28@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

    Its a buy borrow die strategy. You take loans and refi them to be larger and larger until you die, when you do, the cost basis is reset (so if your cost basis was 1,000,000, but you investments are now worth 20,000,000, your cost basis becomes an untaxable 20,000,000) this new “stepped up” untaxable money (in investments) is used to pay off the debt by selling some assets, lets say 5,000,000 in debt covered by selling (untaxable) investments. This would be for someone with a handful of millions of dollars, I can only imagine what it is like for someone who has hundreds of billions in assets…

    source
  • AA5B@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

    Pay it off over time with lower taxes income.

    If I earn $1M I have to pay a lot of income tax. But if I take a loan for $1M, I may only need to earn a taxable income of $100K

    source