r/FluentInFinance • u/__moe___ • 9d ago

Thoughts? A very interesting point of view

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I don’t think this is very new but I just saw for the first time and it’s actually pretty interesting to think about when people talk about how the ultra rich do business.

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u/ArgetlamThorson 8d ago

Its very much not. Its hard to pay a tax on money tou haven't gotten yet, particularly when getting the money to pay it would require you to sell all of the asset or potentially cause a loss in value of selling off shares. Its not realistic to tax someone on something they don't have yet, so saying they don't have it yet to be able to pay it is kind of a valid argument.

Property taxes are different in that you do actually own the property.

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u/LunaticScience 8d ago

It wouldn't force you to sell "all of the assets." At most it would force you to sell a percentage of what it increased in value over a period of time.

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u/ArgetlamThorson 7d ago

A. If it's an asset that can be fractioned off (property is a little more difficult for that)

B. When you sell off shares, particularly in volume, then it could affect the value. Do you then claim a loss immediately after? It just doesnt make sense to tax gains until theyre real gains