Janet Yellen just proposed a tax on unrealized capital gains. For those who don’t know, that means if you buy a stock for $1000 and it goes up to $5000 then back to $1000, you owe taxes on the $4000 profit that you never made. This concept will literally bankrupt people.
Imagine that tax being levied in the era of crypto, which has volatile swings. The fact that someone even SAID that as a member of the government is scary, scary, scary!
@MrsT106 This isn't true. The proposal is dumb but it only affects people who make $100 million three years in a row or have a net worth of at least $1 billion.
@MrsT106 When I make my first billion ill worry about this. Until then it's not my problem
@MrsT106 @PhilSalesses It’s a tax on the ultra wealthy, no small investor needs to worry about their $5k Robinhood trade.
@MrsT106 @PhilSalesses @PhilSalesses, you rt'd this. It's a lie. The proposal only applies to billionaires. It might be dumb! It might be totally unworkable. I am not an economist. All I know is that listening to this stuff won't get us closer to understanding, or doing, anything.
@MrsT106 You were right until the "...then goes back to $1000" part. There has to be a sale to have gains.
@MrsT106 No, it doesn’t impact anyone who would worry about a $5,000 fluctuation because it only affects <1,000 of the absolute wealthiest taxpayers in the US. Those folks could lose $5,000 in the couch, or every couch in all of their houses, and not notice.
@MrsT106 Who determines at what point in time the tax is levied?