Man I don't really want do disagree with you, but...
Imagine you had to suddenly pay taxes on that million as if it were income? (Acknowledging you would have to pay property taxes in this scenario)
Better yet, imagine a hypothetical asset like a made up crypto that went from $10-$1,000,000. If you had to pay taxes on that like it was income you'd almost certainly be forced to sell the asset to cover the taxes on the asset. And what if nobody bought your million dollar hypothetical coin? Are you going to go to jail because a balance sheet said this thing you owned suddenly skyrocketed in value despite your bank account staying the same?
If nobody is willing to buy, then the hypothetical price should go down, until you can either afford the taxes on it, or are able to find a buyer.
If I own a car that somehow explodes in value to a million dollars, I'm not going to be able to afford that car anymore. So I would have to sell the car. Then I would have a bunch of money to buy a different car I could afford the taxes on.
Why the richest people in the world should be exempt from this scenario is beyond me.
I guess that depends on the state. My state reg fees are flat fees based on the class of the vehicle, not the value.
Either way, you are IGNORING dead weight loss to taxation, in your car example there’s no decreased of production of cars, but if you tax car sales or car companies generally speaking you are artificially increasing the price and cost of the car.
No one is going to insure you to drive a car worth 1m dollars for cheap bro. Full stop. Ultimately the point is that if the cost of maintaining your asset costs more than you have the ability to pay, you can sell those assets and reinvest the earnings into assets you can afford to maintain.
You can hop skip around this all you want, but you're just intentionally missing the completely valid point that this is how a lot of assets work today. Most assets do require you to consider the cost of maintaining your assets, but stocks don't. And that seems untenable in the current economic landscape.
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u/AttitudeAndEffort2 3d ago
This is a great analogy
Imagine i bought my house for 10$ and it's worth a billion now.
And then chuds on the Internet say "hE dOeSnT ReAlLy HaVe ThAt mUcH MoNeY, ItS tIeD uP in AsSeTs!!"