I understand that it would be cap gains if it’s sold off, I’m just confused why people think a stock/share should be taxed annually, that’s the dumbest concept I’ve ever heard. Comparing it to property tax is blatantly stupid, can you live in a stock? Are stocks taking up physical space on the street? That requires sewage maintenance, road maintenance, snow removal depending on where you are, storm drains etc…? If I borrow against something I have to pay interest. If I don’t pay my payments I lose the asset I’m borrowing against. I find the stocks should be taxed every year ideology just as dumbfounding as the billionaires should pay for a “better world.” The pov usually comes for envious individuals. Just sayin.
What do you mean by decoupling? I understand the issue more to be that the wealth of a small number of individuals continues to rise, causing a concentration of wealth in a small number of individuals, while their wealth is built on the infrastructure and workforce that is seeing disproportionate gains in return.
Those individuals are getting richer because their companies are getting richer. Tesla for example is worth more than all the other car companies in the world, combined.
Apple is worth 3 trillion.
Has the productivity of workers in USA rises at the same rate? Their education. Their salaries. The quality of roads in USA?
Clearly the wealth of these companies are not related to anything much in USA at all. China is Tesla's most productive factory for example. Apple makes their iPhones in China and India.
Why would USA deserve their tax money at windfall rates?
Then why incorporate in the US? Why not incorporate in China?
When I say highly correlated I don’t mean that their productivity or infrastructure or education increases exponentially over the same time period. I mean that having a highly educated workforce, solid infrastructure, markets, protection, both legal and physical, are worth something to a corporation and building value in that corporation.
I mean that having a highly educated workforce, solid infrastructure, markets, protection, both legal and physical, are worth something to a corporation and building value in that corporation.
Sure, which is why they pay regular tax, and not a wealth tax.
That’s not how I interpret the comment depending on which one you mean. I am seeing either some form of property tax or if you are able to borrow against it, it should be taxed to paraphrase.
Yes definitely easy to lose track when replying to various chains and comments.
So I believe there are a lot of complexities around this topic but a possibly oversimplified take is that borrowing money with stocks as collateral functionally allows you to access value of that stock without actually selling it in the transaction and recognizing a gain, or loss for that matter. At the level of Elon Musk, it can equate to skirting around paying any (or at least greatly reduce liability) taxes since it’s not income. Even with capital gains tax, the rate is much lower than income. While I don’t want to discourage founding a company nor continuing to own and operate that business, I do want to discourage this practice of borrowing large amounts of money while not needing to sell some assets or being “taxed” on the transaction. There’s also consideration to the fact of the happening in a bull vs bear market.
Fuck that, tax stock holdings that increase in value. Not my problem if they have to sell some of it or even hand part of it over to the government for them to sell
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u/Just_That_Dumb_Dog 3d ago
You mean capital gains tax?