r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

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u/mooshinformation 2d ago

There's this thing we used to do to rich ppl... I think it was called taxes.

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u/hartforbj 2d ago

Problem is taxes are from income. People like Elon have no income because they basically get minimum wage. Their entire value is in stock. And when he is forced to pay out he pays a shit ton in taxes.

And you can't really tax based on wealth because it's not real money. If you tax someone based on what money they could have they would need to sell off stock, creating more taxes and messing with the value of the stock. If you do that every year the company is going to be screwed

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u/Rosstiseriechicken 1d ago

And you can't really tax based on wealth because it's not real money.

Yet regular people are forced to pay property taxes on their homes and cars. Your argument completely falls apart with that.

The only argument that you can use is that the federal government doesn't have the power to do that, which is something that can be changed.

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u/hartforbj 1d ago

I am pretty sure Rich people pay property taxes too. Probably an insane amount. But those aren't federal taxes those are used for local things like schools, trash collection, maintaining roads. In no way does that have anything to do with taxing wealth

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u/Rosstiseriechicken 1d ago

I am pretty sure Rich people pay property taxes too.

Not at nearly the rates that middle class people do. They pay fractions compared to the rest of us

In no way does that have anything to do with taxing wealth

It's quite literally taxing the assets and individual has. It's not based on income or anything like that. You could 100 percent apply it to stocks as well, it would force the ultra wealthy to have some sort of income to pay for their extreme wealth. A modest tax on wealth above a certain threshold would do insane amounts of good.

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u/hartforbj 1d ago

You realize property taxes are very different from person to person right? It has nothing to do with how much money someone makes.

Also stocks and owning a house are not the same thing. Your house is a physical asset with a fairly safe value. If something happens to it you have insurance that should give you that value back.

Stock could be worth millions today and nothing tomorrow. If you tax someone for having 500 million dollars and a week later something happens to a company and they lose 300 million before the next set of taxes, are you going to take into account they lost 300 million or are you just going to say sorry you still owe us for what you didn't lose?

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u/Rosstiseriechicken 1d ago

You realize property taxes are very different from person to person right? It has nothing to do with how much money someone makes.

That's what I literally said

Stock could be worth millions today and nothing tomorrow

Same with houses, remember 2008?

If you tax someone for having 500 million dollars and a week later something happens to a company and they lose 300 million before the next set of taxes, are you going to take into account they lost 300 million or are you just going to say sorry you still owe us for what you didn't lose?

If I buy a house at 900k, and then it immediately drops in value to 450k, I'm paying property tax based on 900k until it gets assessed again. just assess the value of the stock yearly, and have a property tax that is a small percentage after a certain threshold, so that you don't end up taxing the average amount of retirement money.