Democrats plan to tax "unrealized gains" with their sweeping tax proposal in 2025.

[Hollie]

I love the idea of taxing the family home for unrealised gains EVERY YEAR!!!! What could possibly be wrong with that???

Greg

Everything will go wrong. Its a tax on gains based on what metric? On assessed value? That's not necessarily market value so it amounts to playing with numbers.

 

[Winston]

Everything will go wrong. Its a tax on gains based on what metric? On assessed value? That's not necessarily market value so it amounts to playing with numbers.

Quit being stupid. No one is going to be taxing the family home as a capital gains. This tax on unrealized capital gains only applies to those with incomes in excess of 100 million dollars a year. And I haven't even seen that within the White House 2025 budget or the Democrat Party Platform. Maybe you can document that proposal to tax unrealized capital gains.

 

[Hollie]

Quit being stupid. No one is going to be taxing the family home as a capital gains. This tax on unrealized capital gains only applies to those with incomes in excess of 100 million dollars a year. And I haven't even seen that within the White House 2025 budget or the Democrat Party Platform. Maybe you can document that proposal to tax unrealized capital gains.

Quit being an apologist for Democrat stupidity. I put nothing out of bounds when it comes to stupidity on the part of Democrats. As for taxes on unrealized capital gains;

https://www.cato.org/blog/harriss-taxes-unrealized-gains-only-tip-5-trillion-tax-iceberg.

 

[Winston]

Quit being an apologist for Democrat stupidity. I put nothing out of bounds when it comes to stupidity on the part of Democrats. As for taxes on unrealized capital gains;

https://www.cato.org/blog/harriss-taxes-unrealized-gains-only-tip-5-trillion-tax-iceberg.

Your link didn't work, but I found it, from the Cato Institute, LOL, not exactly an unbiased source, let's run with it.

original article,

https://www.cato.org/blog/harriss-taxes-unrealized-gains-only-tip-5-trillion-tax-iceberg

Source document,

https://home.treasury.gov/system/files/131/General-Explanations-FY2025.pdf#page87

From the source document,

Taxpayers with wealth greater than the threshold would be required to report to the Internal Revenue Service (IRS) on an annual basis, separately by asset class, the total basis and total estimated value (as of December 31 of the taxable year) of their assets in each specified asset class, and the total amount of their liabilities. Tradable assets (for example, publicly traded stock) would be valued using end-of-year market prices. Taxpayers would not have to obtain annual, market valuations of non-tradable assets. Instead, non-tradable assets would be valued using the greater of the original or adjusted cost basis, the last valuation event from investment,borrowing, or financial statements, or other methods approved by the Secretary. Valuations of non-tradable assets would not be required annually and would instead increase by a conservative floating annual return (the five-year Treasury rate plus two percentage points) in between valuations. The IRS may offer avenues for taxpayers to appeal valuations, such as through appraisal. This reporting also would be used to determine if the taxpayer is eligible to be treated as “illiquid.” Taxpayers would be treated as illiquid if tradeable assets held directly or indirectly by the taxpayer make up less than 20 percent of the taxpayer’s wealth. Taxpayers who are treated asilliquid may elect to include only unrealized gain in tradeable assets in the calculation of theirminimum tax liability. However, taxpayers making this election would be subject to a deferral charge upon, and to the extent of, the realization of gains on any non-tradeable assets. The deferral charge would not exceed ten percent of unrealized gains.

There is a lot of shit going on here. The elimination of the step-up is the biggest thing, and for good reason. The Cato Institute is depending on your ignorance. As the source article demonstrates, many billionaires find themselves paying an effective tax rate in the single digits, if they pay taxes at all. Teachers, cops, firefighters, and secretaries, they all pay a higher marginal tax rate. How does that happen?

So, your Dad started this kickass business. He built it up over time, and he never sold jackshit. He passes down millions of dollars worth of assets to you, all capital gains, none taxed because you got the step up. So you own millions of dollars worth of assets, paid taxes on none of them, and you like to spend your time raising horses, supporting charities, and hot-air ballooning. You have no damn interest whatsoever in the business your father built. But, you need money. You don't sell those capital assets, well maybe a few, just to generate some taxfree cash, remember, the step-up. Instead of selling, well you must borrow against the value of those assets. The loan proceeds are not taxed, and you get to deduct the interest expense from the company income. Then you die, pass the assets on, your descendants get the step-up, and no taxes are paid. Rinse and repeat.

That shit needs to end, like flippin yesterday. It screws all you poor paupers, and you are too stupid to realize it. My parents inherited two farms, both nestled at the foot of the Blue Ridge mountains. The maternal inheritance, a King's grant. Cost basis, ZERO. Hundreds of acres, granted by the King before this country was even a country. Thankfully, it was in the Granville District. Dad promptly sold both farms. Seven figures, plus, tax damn free because he sold them almost immediately after inheriting them. The second farm was built with hard work, sound crop strategies, and a damn good poker hand. Again, seven figures, again, got the step up, again, no taxes paid on the gain.

So Dad drops all that revenue into an investment portfolio. Mom is sitting pretty. But she is as tight as a drum, refuse to spend much, and in the end, that portfolio is going to continue to grow, pass on to me and my siblings, and we aren't going to have to pay jackshit in capital gains taxes, we get the step up. Like I said, rinse and repeat. We just borrow money against that portfolio, deduct the interest expense from our legitimate income, and pay nothing in taxes.
a
And then, well the shit just starts getting sick. Hell, I am just waiting to get my inheritance, I don't need to jackshit other than survive. Once I get the step-up, well I have millions of dollar available, tax-free. But like I said, it starts getting sick. I married well, Scottish royalty, and the wife is set to inherit dozens of oil wells in Texas. Damn skippy, I will borrow against the revenues, refuse to sell the assets, and pass them on to my children. I am beginning to wonder why they even bother working for a living. That is our system, it is fubared and tilted to an extraordinary degree to those that have.

 

[Hollie]

Your link didn't work, but I found it, from the Cato Institute, LOL, not exactly an unbiased
From the source document,

Taxpayers with wealth greater than the threshold would be required to report to the Internal Revenue Service (IRS) on an annual basis, separately by asset class, the total basis and total estimated value (as of December 31 of the taxable year) of their assets in each specified asset class, and the total amount of their liabilities. Tradable assets (for example, publicly traded stock) would be valued using end-of-year market prices. Taxpayers would not have to obtain annual, market valuations of non-tradable assets. Instead, non-tradable assets would be valued using the greater of the original or adjusted cost basis, the last valuation event from investment,borrowing, or financial statements, or other methods approved by the Secretary. Valuations of non-tradable assets would not be required annually and would instead increase by a conservative floating annual return (the five-year Treasury rate plus two percentage points) in between valuations. The IRS may offer avenues for taxpayers to appeal valuations, such as through appraisal. This reporting also would be used to determine if the taxpayer is eligible to be treated as “illiquid.” Taxpayers would be treated as illiquid if tradeable assets held directly or indirectly by the taxpayer make up less than 20 percent of the taxpayer’s wealth. Taxpayers who are treated asilliquid may elect to include only unrealized gain in tradeable assets in the calculation of theirminimum tax liability. However, taxpayers making this election would be subject to a deferral charge upon, and to the extent of, the realization of gains on any non-tradeable assets. The deferral charge would not exceed ten percent of unrealized gains.

There is a lot of shit going on here. The elimination of the step-up is the biggest thing, and for good reason. The Cato Institute is depending on your ignorance. As the source article demonstrates, many billionaires find themselves paying an effective tax rate in the single digits, if they pay taxes at all. Teachers, cops, firefighters, and secretaries, they all pay a higher marginal tax rate. How does that happen?

So, your Dad started this kickass business. He built it up over time, and he never sold jackshit. He passes down millions of dollars worth of assets to you, all capital gains, none taxed because you got the step up. So you own millions of dollars worth of assets, paid taxes on none of them, and you like to spend your time raising horses, supporting charities, and hot-air ballooning. You have no damn interest whatsoever in the business your father built. But, you need money. You don't sell those capital assets, well maybe a few, just to generate some taxfree cash, remember, the step-up. Instead of selling, well you must borrow against the value of those assets. The loan proceeds are not taxed, and you get to deduct the interest expense from the company income. Then you die, pass the assets on, your descendants get the step-up, and no taxes are paid. Rinse and repeat.

That shit needs to end, like flippin yesterday. It screws all you poor paupers, and you are too stupid to realize it. My parents inherited two farms, both nestled at the foot of the Blue Ridge mountains. The maternal inheritance, a King's grant. Cost basis, ZERO. Hundreds of acres, granted by the King before this country was even a country. Thankfully, it was in the Granville District. Dad promptly sold both farms. Seven figures, plus, tax damn free because he sold them almost immediately after inheriting them. The second farm was built with hard work, sound crop strategies, and a damn good poker hand. Again, seven figures, again, got the step up, again, no taxes paid on the gain.

So Dad drops all that revenue into an investment portfolio. Mom is sitting pretty. But she is as tight as a drum, refuse to spend much, and in the end, that portfolio is going to continue to grow, pass on to me and my siblings, and we aren't going to have to pay jackshit in capital gains taxes, we get the step up. Like I said, rinse and repeat. We just borrow money against that portfolio, deduct the interest expense from our legitimate income, and pay nothing in taxes.
a
And then, well the shit just starts getting sick. Hell, I am just waiting to get my inheritance, I don't need to jackshit other than survive. Once I get the step-up, well I have millions of dollar available, tax-free. But like I said, it starts getting sick. I married well, Scottish royalty, and the wife is set to inherit dozens of oil wells in Texas. Damn skippy, I will borrow against the revenues, refuse to sell the assets, and pass them on to my children. I am beginning to wonder why they even bother working for a living. That is our system, it is fubared and tilted to an extraordinary degree to those that have.

Like many. You buy into ,"the rich aren't taxed enough," that you get from the treasury. LoL.

The Value Of Taxing The Wealthy: $56 Billion

President Barack Obama's proposal to let the Bush tax cuts expire for wealthier Americans could add significantly to federal coffers.

knpr.org

Your link didn't work, but I found it, from the Cato Institute, LOL, not exactly an unbiased source, let's run with it.

original article,

https://www.cato.org/blog/harriss-taxes-unrealized-gains-only-tip-5-trillion-tax-iceberg

Source document,

https://home.treasury.gov/system/files/131/General-Explanations-FY2025.pdf#page87

From the source document,

Taxpayers with wealth greater than the threshold would be required to report to the Internal Revenue Service (IRS) on an annual basis, separately by asset class, the total basis and total estimated value (as of December 31 of the taxable year) of their assets in each specified asset class, and the total amount of their liabilities. Tradable assets (for example, publicly traded stock) would be valued using end-of-year market prices. Taxpayers would not have to obtain annual, market valuations of non-tradable assets. Instead, non-tradable assets would be valued using the greater of the original or adjusted cost basis, the last valuation event from investment,borrowing, or financial statements, or other methods approved by the Secretary. Valuations of non-tradable assets would not be required annually and would instead increase by a conservative floating annual return (the five-year Treasury rate plus two percentage points) in between valuations. The IRS may offer avenues for taxpayers to appeal valuations, such as through appraisal. This reporting also would be used to determine if the taxpayer is eligible to be treated as “illiquid.” Taxpayers would be treated as illiquid if tradeable assets held directly or indirectly by the taxpayer make up less than 20 percent of the taxpayer’s wealth. Taxpayers who are treated asilliquid may elect to include only unrealized gain in tradeable assets in the calculation of theirminimum tax liability. However, taxpayers making this election would be subject to a deferral charge upon, and to the extent of, the realization of gains on any non-tradeable assets. The deferral charge would not exceed ten percent of unrealized gains.

There is a lot of shit going on here. The elimination of the step-up is the biggest thing, and for good reason. The Cato Institute is depending on your ignorance. As the source article demonstrates, many billionaires find themselves paying an effective tax rate in the single digits, if they pay taxes at all. Teachers, cops, firefighters, and secretaries, they all pay a higher marginal tax rate. How does that happen?

So, your Dad started this kickass business. He built it up over time, and he never sold jackshit. He passes down millions of dollars worth of assets to you, all capital gains, none taxed because you got the step up. So you own millions of dollars worth of assets, paid taxes on none of them, and you like to spend your time raising horses, supporting charities, and hot-air ballooning. You have no damn interest whatsoever in the business your father built. But, you need money. You don't sell those capital assets, well maybe a few, just to generate some taxfree cash, remember, the step-up. Instead of selling, well you must borrow against the value of those assets. The loan proceeds are not taxed, and you get to deduct the interest expense from the company income. Then you die, pass the assets on, your descendants get the step-up, and no taxes are paid. Rinse and repeat.

That shit needs to end, like flippin yesterday. It screws all you poor paupers, and you are too stupid to realize it. My parents inherited two farms, both nestled at the foot of the Blue Ridge mountains. The maternal inheritance, a King's grant. Cost basis, ZERO. Hundreds of acres, granted by the King before this country was even a country. Thankfully, it was in the Granville District. Dad promptly sold both farms. Seven figures, plus, tax damn free because he sold them almost immediately after inheriting them. The second farm was built with hard work, sound crop strategies, and a damn good poker hand. Again, seven figures, again, got the step up, again, no taxes paid on the gain.

So Dad drops all that revenue into an investment portfolio. Mom is sitting pretty. But she is as tight as a drum, refuse to spend much, and in the end, that portfolio is going to continue to grow, pass on to me and my siblings, and we aren't going to have to pay jackshit in capital gains taxes, we get the step up. Like I said, rinse and repeat. We just borrow money against that portfolio, deduct the interest expense from our legitimate income, and pay nothing in taxes.
a
And then, well the shit just starts getting sick. Hell, I am just waiting to get my inheritance, I don't need to jackshit other than survive. Once I get the step-up, well I have millions of dollar available, tax-free. But like I said, it starts getting sick. I married well, Scottish royalty, and the wife is set to inherit dozens of oil wells in Texas. Damn skippy, I will borrow against the revenues, refuse to sell the assets, and pass them on to my children. I am beginning to wonder why they even bother working for a living. That is our system, it is fubared and tilted to an extraordinary degree to those that have.

Like many, you buy into the "tax the rich" slogan. "The rich" actually pay taxes.

Summary of the Latest Federal Income Tax Data, 2024 Update

The Tax Cuts and Jobs Act (TCJA) made many significant, but temporary, changes to the individual income tax code to lower tax rates, widen brackets, increase the standard deduction and child tax credit, and more.

taxfoundation.org

• The average income tax rate in 2021 was 14.9 percent. The top 1 percent of taxpayers paid a 25.9 percent average rate, nearly eight times higher than the 3.3 percent average rate paid by the bottom half of taxpayers.
• The top 1 percent’s income share rose from 22.2 percent in 2020 to 26.3 percent in 2021 and its share of federal income taxes paid rose from 42.3 percent to 45.8 percent.
• The top 50 percent of all taxpayers paid 97.7 percent of all federal individual income taxes, while the bottom 50 percent paid the remaining 2.3 percent.

 

[Winston]

]

• The top 1 percent’s income share rose from 22.2 percent in 2020 to 26.3 percent in 2021 and its share of federal income taxes paid rose from 42.3 percent to 45.8 percent.

Wow, just look at that shit. I mean you got to be a total dumbass not to see it. So the top one percent share of income rose by twenty percent, but their share of income taxes paid only rose by ten percent? Do you not have a problem with that? Do you not see that? Is that not a clear indication that our tax system is tilted IN THEIR FAVOR.

I mean you actually post the damn numbers. ANd you are so stupid that you feel it actually proves something, and well, it does. If you ain't in the top one percent, YOU ARE GETTING SHIT. Goddamn, wake the fuck up.

 

[Hollie]

Wow, just look at that shit. I mean you got to be a total dumbass not to see it. So the top one percent share of income rose by twenty percent, but their share of income taxes paid only rose by ten percent? Do you not have a problem with that? Do you not see that? Is that not a clear indication that our tax system is tilted IN THEIR FAVOR.

I mean you actually post the damn numbers. ANd you are so stupid that you feel it actually proves something, and well, it does. If you ain't in the top one percent, YOU ARE GETTING SHIT. Goddamn, wake the fuck up.

Such a befuddled little boy. You whine about the rich not paying taxes, yet you never understood the large percentage of taxes they pay.

Youre already "woke" so I'll take your childish rant as the expected babbling expected from the wokesters.

 

[Winston]

Such a befuddled little boy. You whine about the rich not paying taxes, yet you never understood the large percentage of taxes they pay.

Youre already "woke" so I'll take your childish rant as the expected babbling expected from the wokesters.

God damn right they pay a large percentage of the taxes. I agree, they should pay less of the percentage of taxes. But that isn't going to happen because THEY MAKE THE VAST MAJORITY OF THE INCOME. I mean here is the thing, I will take it in a New York minute. The wealthy should pay a lower percentage of the total taxes, but in order for that to happen, they have to make a lower percentage of total income. The reality, yes, they pay a higher percentage of total taxes, but they also take a higher percentage of total income. I am the first to be there to change that, the rich, well I be go to hell if they want to change it. You are a fucking fool.

 

[Hollie]

God damn right they pay a large percentage of the taxes. I agree, they should pay less of the percentage of taxes. But that isn't going to happen because THEY MAKE THE VAST MAJORITY OF THE INCOME. I mean here is the thing, I will take it in a New York minute. The wealthy should pay a lower percentage of the total taxes, but in order for that to happen, they have to make a lower percentage of total income. The reality, yes, they pay a higher percentage of total taxes, but they also take a higher percentage of total income. I am the first to be there to change that, the rich, well I be go to hell if they want to change it. You are a fucking fool.

Why don't you send the abovec in a strongly worded email to Harris? and

 

[Winston]

Such a befuddled little boy. You whine about the rich not paying taxes, yet you never understood the large percentage of taxes they pay.

Youre already "woke" so I'll take your childish rant as the expected babbling expected from the wokesters.

Look, you stupid little shit. Your numbers, your posts. The rich saw their share of total income jump by 20%, but they saw their share of total taxes paid increase by 10%. You think they have a problem with that? I mean seriously. Pull your head out of your damn ass.

 

[jotathought]

Look, you stupid little shit. Your numbers, your posts. The rich saw their share of total income jump by 20%, but they saw their share of total taxes paid increase by 10%. You think they have a problem with that? I mean seriously. Pull your head out of your damn ass.

If they didn't have a problem with it, why would 'the rich' find other means to reduce their tax liability? Why would there be 'loop holes' if the rich didn't mind paying those extra taxes?

Meanwhile, 48%-ish of wage earners pay no income tax.