Well, yes, they're not making money. Their assets are appreciating. They only get taxed when they make money not when the value of their stock goes up. The income they do get is taxed at extremely high rates, but dumbasses like Buffett falsely lump the appreciation in with the actual income to pretend they have a "lower tax rate" when trying to push their political agendas despite knowing full well taxing appreciation is moronic.
Yup. "Tax the rich" doesn't exist. "Tax the rich" actually only screws small and medium sized business owners who aren't quite rich enough to do all the tax acrobatics...
It's why these absolute morons keep proposing that they tax UNREALIZED gains on the stock market which would absolutely implode our economy and crash the market....
I swear you can't tell me democrats aren't actively trying to sabotage the country.
You are exactly on point with how by passing an unrealized gains tax will definitely implode the mkt. The Dems love to play the Robinhood game and they don't give a shit about the ramification of their tax policies. Here's an excerpt re: Warren's wealth tax from the Hill:
"Estimates of similar taxes have found they would decrease innovation and investment, driving down wages and causing unemployment. For example, an American Action Forum (AAF) study on Warren’s $3 trillion wealth tax proposal found that the tax would shrink GDP by $1.1 trillion over 10 years and would shrink labor income by $785 billion over the same time period. "
Billionaires aren't W2 workers and don't pay the top federal marginal tax rate of 37%. More taxes are rarely the right answer but if you are gonna meme at least get your facts right.
Doesn’t matter, it’s about spending vs income through taxation.
Targeting billionaires is just cheap marketing for votes and will not actually help balance the government fiscally.
well let me clear up a few misconceptions
Wealthy people typically pay the following:
1. 20% capital gains rate, which is based on their AGI. No billionaire pays the 15% long-term capital gains rate that you and I pay. They pay 20%
2. Up to 37% on non-qualified dividends (and they will likely have quite a bit of this)
3. Up to 37% on interest income from bonds, or any other debt instrument. A vast majority of very wealthy people own bonds--typically a lot
4. Significant property taxes on their large homes and estates
5. Luxury taxes
6. A billionaire who pays himself a salary through a C-corp will pay income taxes like the rest of us, and that will be at a high rate
The fake narrative that rich people pay rock-bottom tax rates, that are much lower than the average public, is complete bullshit. It originates from people who
a) Have never been wealthy, managed investments, etc.
b) don't know how the tax code works
Now there is the issue of very wealthy people using loans to minimize their taxes, or evade the IRS. But even in this instance, they are paying a ton of interest on their loans --it typically amounts to a shell game
and when they die, they will need to contend with estate or even inheritance taxes (in states that have this)
And yet the[ top 10% pay over three quarters of all income tax remitted](https://www.ntu.org/foundation/tax-page/who-pays-income-taxes#:~:text=The%20top%2010%20percent%20of,income%20taxes%20paid%20in%202021)
> The top 10 percent of earners bore responsibility for 76 percent of all income taxes paid, and the top 25 percent paid 89 percent of all income taxes. Altogether, the top 50 percent of filers earned 90 percent of all income and were responsible for 98 percent of all income taxes paid in 2021.
And then complain about the tax loopholes the billionaires worked together with you to create so they don't have to pay as much as it would seem on paper, but absolutely under no circumstances simplify the tax code
If we took everything all the billionaires in the US own, it’d fund the federal government for about 9mos. If we taxed everybody making $500k or more at 100%, we’d still be spending in the red.
It's worse than that, I believe. If we took everyone in that range and taxed them at 100%, they would just increase spending in kind, if not increase the deficit.
Imagine if you had racked up all your credit cards, spent all your money and had a huge spending problem. The next step would be complete desperation. That is our government right now. It is trying to get money in any way possible. The billionaire tax thing was just a good soundbite for him.
Many seem to have this image that they're literally just hoarding stacks of cash like a dragon's hoard or Scrooge McDuck's vault. They treat "net worth" as though that means "cash on hand".
I've always been told income tax doesn't much affect the obscenely wealthy as they don't make their money via a source that is taxable by income tax.
And you would have been told exactly correct.
Well, yes, they're not making money. Their assets are appreciating. They only get taxed when they make money not when the value of their stock goes up. The income they do get is taxed at extremely high rates, but dumbasses like Buffett falsely lump the appreciation in with the actual income to pretend they have a "lower tax rate" when trying to push their political agendas despite knowing full well taxing appreciation is moronic.
Yup. "Tax the rich" doesn't exist. "Tax the rich" actually only screws small and medium sized business owners who aren't quite rich enough to do all the tax acrobatics...
A total wealth tax however...
Describe what that would look like. How are you taxing net worth??
...would end up not effecting those that control congress, but effect everyone else...
…would be very stupid.
It's why these absolute morons keep proposing that they tax UNREALIZED gains on the stock market which would absolutely implode our economy and crash the market.... I swear you can't tell me democrats aren't actively trying to sabotage the country.
You are exactly on point with how by passing an unrealized gains tax will definitely implode the mkt. The Dems love to play the Robinhood game and they don't give a shit about the ramification of their tax policies. Here's an excerpt re: Warren's wealth tax from the Hill: "Estimates of similar taxes have found they would decrease innovation and investment, driving down wages and causing unemployment. For example, an American Action Forum (AAF) study on Warren’s $3 trillion wealth tax proposal found that the tax would shrink GDP by $1.1 trillion over 10 years and would shrink labor income by $785 billion over the same time period. "
Economy crashing is a good excuse for more government control. In particular, Democrat party.
And the implementation of Central Bank Digital Currency.
But they are taxed when they do get the money out of the stocks they receive their compensation in.
Correct. These simple minded lefties don't seem to understand that. They have a poor grasp of finance and economics.
Billionaires aren't W2 workers and don't pay the top federal marginal tax rate of 37%. More taxes are rarely the right answer but if you are gonna meme at least get your facts right.
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thx for sharing this info. It clears up a lot of misconceptions some people may have due to the complexity of this issue.
You eventually need to take out taxable income to pay off the loan.
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Hah, tell that to Peter Thiel who has a $5 billion Roth IRA.
You want to tax borrowed funds as income tax?
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Doesn’t matter, it’s about spending vs income through taxation. Targeting billionaires is just cheap marketing for votes and will not actually help balance the government fiscally.
We could take all of their money and it wouldn’t do much at all compared to what we spend.
Exactly. Bleed every millionaire and billionaire on the entire earth completely dry, and we still couldn't pay the nation debt off.
well let me clear up a few misconceptions Wealthy people typically pay the following: 1. 20% capital gains rate, which is based on their AGI. No billionaire pays the 15% long-term capital gains rate that you and I pay. They pay 20% 2. Up to 37% on non-qualified dividends (and they will likely have quite a bit of this) 3. Up to 37% on interest income from bonds, or any other debt instrument. A vast majority of very wealthy people own bonds--typically a lot 4. Significant property taxes on their large homes and estates 5. Luxury taxes 6. A billionaire who pays himself a salary through a C-corp will pay income taxes like the rest of us, and that will be at a high rate The fake narrative that rich people pay rock-bottom tax rates, that are much lower than the average public, is complete bullshit. It originates from people who a) Have never been wealthy, managed investments, etc. b) don't know how the tax code works Now there is the issue of very wealthy people using loans to minimize their taxes, or evade the IRS. But even in this instance, they are paying a ton of interest on their loans --it typically amounts to a shell game and when they die, they will need to contend with estate or even inheritance taxes (in states that have this)
This is all verifiably accurate information the tourists don't want to be known.
I don't know why you are being down voted for pointing out that the liberal narrative that rich people pay rock bottom tax rates is BS.
they vote me down vs. actually demonstrating how I am wrong
And yet the[ top 10% pay over three quarters of all income tax remitted](https://www.ntu.org/foundation/tax-page/who-pays-income-taxes#:~:text=The%20top%2010%20percent%20of,income%20taxes%20paid%20in%202021) > The top 10 percent of earners bore responsibility for 76 percent of all income taxes paid, and the top 25 percent paid 89 percent of all income taxes. Altogether, the top 50 percent of filers earned 90 percent of all income and were responsible for 98 percent of all income taxes paid in 2021.
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They own businesses and pay the corporate tax rate in those profits.
And then complain about the tax loopholes the billionaires worked together with you to create so they don't have to pay as much as it would seem on paper, but absolutely under no circumstances simplify the tax code
We tax everyone and everything, yet still run a large deficit. It's all on spending, not taxing.
If we took everything all the billionaires in the US own, it’d fund the federal government for about 9mos. If we taxed everybody making $500k or more at 100%, we’d still be spending in the red.
It's worse than that, I believe. If we took everyone in that range and taxed them at 100%, they would just increase spending in kind, if not increase the deficit.
Yup. We have a spending problem, not a tax problem. This is all started with Bush Jr. running huge deficits and it hasn't stopped.
You always hear. Pay your fair share. But when you ask them what the fair share is, they won't answer it
Anybody that earns more than them of course
Imagine if you had racked up all your credit cards, spent all your money and had a huge spending problem. The next step would be complete desperation. That is our government right now. It is trying to get money in any way possible. The billionaire tax thing was just a good soundbite for him.
Where do they think the money comes from when they tax "billionaires"? Do they think it's just sitting under a mattress somewhere not doing anything?
Many seem to have this image that they're literally just hoarding stacks of cash like a dragon's hoard or Scrooge McDuck's vault. They treat "net worth" as though that means "cash on hand".