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General Discussion => The New Joe Montgomery Birther Pit => Topic started by: sys on June 21, 2021, 03:21:13 PM

Title: tax poll
Post by: sys on June 21, 2021, 03:21:13 PM
didn't want to make it too exotic with all sorts of options.  so if you only want to tax unrealized gains for the utra-rich just answer yes and if you don't want to tax unrealized gains, but you want to disincentivize portfolio loans and end the step up in basis for heirs, just answer no, etc.
Title: Re: tax poll
Post by: chum1 on June 21, 2021, 03:39:41 PM
This is a foreign concept to me, but I don't see why it couldn't work.

Like, I'm open to the idea no one needs to have more than x million dollars. And I don't really care how that is accomplished.
Title: Re: tax poll
Post by: Rage Against the McKee on June 21, 2021, 03:50:48 PM
I voted no. I would support a wealth tax, though, so I'm not entirely sure if I should have voted no.
Title: Re: tax poll
Post by: sys on June 21, 2021, 04:01:38 PM
I voted no. I would support a wealth tax, though, so I'm not entirely sure if I should have voted no.

you should not have voted no.


could someone who is inclined to vote no please vote yes to correct rage's vote?
Title: Re: tax poll
Post by: MadCat on June 21, 2021, 04:07:52 PM
I think taxing unrealized gains would be a pretty big barrier to entering the world of investments for the non-wealthy.  The government already puts annual deposit limits on tax-advantaged accounts like traditional and Roth IRAs.  :shakesfist:
Title: Re: tax poll
Post by: chum1 on June 21, 2021, 04:28:05 PM
I think taxing unrealized gains would be a pretty big barrier to entering the world of investments for the non-wealthy.  The government already puts annual deposit limits on tax-advantaged accounts like traditional and Roth IRAs.  :shakesfist:

It wouldn't have to apply to everyone.
Title: Re: tax poll
Post by: MakeItRain on June 21, 2021, 04:28:17 PM
I guess I have to ask why this question is posed as a zero sum proposal. Even basic income has variance on what's taxable and what's not. I don't think Nana dropping $500 on Daimler-Chrysler is the same as some CEO taking a $56 million annual salary in stock options that can't be taxed but leveraged into no interest or low interest loans to purchase consumer goods.
Title: Re: tax poll
Post by: sys on June 21, 2021, 04:36:30 PM
I guess I have to ask why this question is posed as a zero sum proposal.

because i didn't want to make 20 different options trying to account for every single poster's preferred tax policy.


afaik, right now we don't tax unrealized gains for any asset, at all, on the federal level.  i tried to make clear with my initial comment that if you want to preserve that distinction you should vote no, regardless of whatever other reforms you might like to enact instead and if you would favor making unrealized capital gains taxable in any way, even if it's just one asset class and only for the richest person in the country, you should vote yes.
Title: Re: tax poll
Post by: sys on June 21, 2021, 04:38:45 PM
btw, i'm definitely not a tax expert, but i'd be really surprised if the value of grants of stock options aren't taxed as ordinary income.
Title: Re: tax poll
Post by: MadCat on June 21, 2021, 04:45:56 PM
I think taxing unrealized gains would be a pretty big barrier to entering the world of investments for the non-wealthy.  The government already puts annual deposit limits on tax-advantaged accounts like traditional and Roth IRAs.  :shakesfist:

It wouldn't have to apply to everyone.

Would you apply it based on net worth?  That seems to make the most sense to me, but is that easy to conceal?
Title: Re: tax poll
Post by: MakeItRain on June 21, 2021, 05:03:03 PM
I guess I have to ask why this question is posed as a zero sum proposal.

because i didn't want to make 20 different options trying to account for every single poster's preferred tax policy.


afaik, right now we don't tax unrealized gains for any asset, at all, on the federal level.  i tried to make clear with my initial comment that if you want to preserve that distinction you should vote no, regardless of whatever other reforms you might like to enact instead and if you would favor making unrealized capital gains taxable in any way, even if it's just one asset class and only for the richest person in the country, you should vote yes.

Well, there's the lone yes vote.
Title: Re: tax poll
Post by: sys on June 21, 2021, 05:39:42 PM
Well, there's the lone yes vote.

someone should have voted yes for rage too.  people suck at following instructions.
Title: Re: tax poll
Post by: sys on June 21, 2021, 06:55:55 PM
Taxing unrealized gains seems really non material in the sense I'm not sure what is happening.

i don't follow.
Title: Re: tax poll
Post by: star seed 7 on June 21, 2021, 06:59:56 PM
I have no rough ridin' clue so I voted yes to help sys out
Title: Re: tax poll
Post by: sys on June 21, 2021, 07:09:55 PM
I have no rough ridin' clue so I voted yes to help sys out

thanks, seven.
Title: Re: tax poll
Post by: sys on June 21, 2021, 07:13:09 PM
Unrealized gains implies you have not consumed or altered your lifestyle due to the wealth (what other people value in what you own). So in a sense it doesn't exist to you yet obviously it allows a lot to happen.

i think that is called the wealth effect among normal people; seems like appropriate nomenclature for the very rich as well.
Title: Re: tax poll
Post by: MakeItRain on June 21, 2021, 11:27:22 PM
Taxing unrealized gains seems really non material in the sense I'm not sure what is happening.

i don't follow.

Unrealized gains implies you have not consumed or altered your lifestyle due to the wealth (what other people value in what you own). So in a sense it doesn't exist to you yet obviously it allows a lot to happen.

For most people yes. However, some get credit extended based on unrealized gains, that's very tangible.
Title: Re: tax poll
Post by: DQ12 on June 22, 2021, 08:19:48 AM
Taxing unrealized gains seems really non material in the sense I'm not sure what is happening.

i don't follow.

Unrealized gains implies you have not consumed or altered your lifestyle due to the wealth (what other people value in what you own). So in a sense it doesn't exist to you yet obviously it allows a lot to happen.

For most people yes. However, some get credit extended based on unrealized gains, that's very tangible.
Do those credit extensions based on unrealized gains get taxed?  Probably a dumb question and probably “no” - but it seems like that loophole ought to be shut.
Title: Re: tax poll
Post by: Kat Kid on June 22, 2021, 08:29:27 AM
Taxing unrealized gains seems really non material in the sense I'm not sure what is happening.

i don't follow.

Unrealized gains implies you have not consumed or altered your lifestyle due to the wealth (what other people value in what you own). So in a sense it doesn't exist to you yet obviously it allows a lot to happen.

For most people yes. However, some get credit extended based on unrealized gains, that's very tangible.
Do those credit extensions based on unrealized gains get taxed?  Probably a dumb question and probably “no” - but it seems like that loophole ought to be shut.
Building consensus.
Title: Re: tax poll
Post by: Woogy on June 22, 2021, 09:33:55 AM
Taxing unrealized gains seems really non material in the sense I'm not sure what is happening.

i don't follow.

Unrealized gains implies you have not consumed or altered your lifestyle due to the wealth (what other people value in what you own). So in a sense it doesn't exist to you yet obviously it allows a lot to happen.

I think - not at all sure though - that this is the intent of the state enabled local intangibles tax in Kansas and other states.   :dunno:
Title: Re: tax poll
Post by: DQ12 on June 22, 2021, 09:48:26 AM
Taxing unrealized gains seems really non material in the sense I'm not sure what is happening.

i don't follow.

Unrealized gains implies you have not consumed or altered your lifestyle due to the wealth (what other people value in what you own). So in a sense it doesn't exist to you yet obviously it allows a lot to happen.

For most people yes. However, some get credit extended based on unrealized gains, that's very tangible.
Do those credit extensions based on unrealized gains get taxed?  Probably a dumb question and probably “no” - but it seems like that loophole ought to be shut.
Building consensus.
Wow - DQ and Tortuga, what a force agreeing on some political idea.
Title: Re: tax poll
Post by: MakeItRain on June 22, 2021, 10:29:08 AM
Taxing unrealized gains seems really non material in the sense I'm not sure what is happening.

i don't follow.

Unrealized gains implies you have not consumed or altered your lifestyle due to the wealth (what other people value in what you own). So in a sense it doesn't exist to you yet obviously it allows a lot to happen.

For most people yes. However, some get credit extended based on unrealized gains, that's very tangible.
Do those credit extensions based on unrealized gains get taxed?  Probably a dumb question and probably “no” - but it seems like that loophole ought to be shut.

A definitive NO
Title: Re: tax poll
Post by: michigancat on June 22, 2021, 11:28:15 AM
would unrealized losses be credited?
Title: Re: tax poll
Post by: catastrophe on June 22, 2021, 12:01:12 PM
A wealth tax can be just that: a tax on wealth. It doesn’t need to be considered a tax on gains or losses, but simply: was your average net worth over the past year above $200 ($500?) million? If yes, you get an over the top tax based on whatever the number was above the threshold.

Repeat year after year, even if you’re technically taxing the same dollars. That’s it.
Title: Re: tax poll
Post by: sys on June 22, 2021, 03:58:25 PM
would unrealized losses be credited?

yes, of course.  but i would guess probably not refundable.
Title: Re: tax poll
Post by: sys on June 22, 2021, 04:00:25 PM
Do those credit extensions based on unrealized gains get taxed?

tax would be paid when the assets guaranteeing the loan are sold to repay the loan.
Title: Re: tax poll
Post by: MakeItRain on June 23, 2021, 01:06:15 AM
Do those credit extensions based on unrealized gains get taxed?

tax would be paid when the assets guaranteeing the loan are sold to repay the loan.

Not good enough
Title: Re: tax poll
Post by: sys on June 23, 2021, 01:32:46 AM
tax would be paid when the assets guaranteeing the loan are sold to repay the loan.

Not good enough

why not?
Title: Re: tax poll
Post by: MakeItRain on June 23, 2021, 04:23:36 PM
tax would be paid when the assets guaranteeing the loan are sold to repay the loan.

Not good enough

why not?

Because it's an end around from paying taxes on what should be income. Those sold assets only represent, in nearly all cases, a small fraction of the income being hidden to avoid taxes.
Title: Re: tax poll
Post by: sys on June 23, 2021, 04:50:37 PM
Because it's an end around from paying taxes on what should be income. Those sold assets only represent, in nearly all cases, a small fraction of the income being hidden to avoid taxes.

i don't think that's accurate.  the taxes are deferred, not avoided forever.

afai can tell, admittedly from just a few minutes of googling, everyone's best scheme to avoid the estate tax is just to give the money away instead of paying taxes on it.  which, ok, great you didn't pay taxes, but also you're dead and your heirs hate you.
Title: Re: tax poll
Post by: MakeItRain on June 24, 2021, 04:50:57 PM
Because it's an end around from paying taxes on what should be income. Those sold assets only represent, in nearly all cases, a small fraction of the income being hidden to avoid taxes.

i don't think that's accurate.  the taxes are deferred, not avoided forever.

afai can tell, admittedly from just a few minutes of googling, everyone's best scheme to avoid the estate tax is just to give the money away instead of paying taxes on it.  which, ok, great you didn't pay taxes, but also you're dead and your heirs hate you.

The income tax they are avoiding isn't deferred. We're not talking about people sitting at home, or travelling around the world while retired. All of these guys are working real jobs, running multi-national corporations with titles, offices, and thousands of people that work for them. Our tax code allows these men, who are definitely drawing a significant salary, from actually claiming said salary. Yes, I realize that at this point most of their worth is in investments but they are working and they aren't doing it for free.
Title: Re: tax poll
Post by: Cire on June 24, 2021, 04:59:13 PM
This guy should pay some taxes

https://twitter.com/apompliano/status/1366188811303141379?s=21


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Title: Re: tax poll
Post by: sys on June 24, 2021, 05:22:40 PM
The income tax they are avoiding isn't deferred... Our tax code allows these men, who are definitely drawing a significant salary, from actually claiming said salary.

how is this accomplished?
Title: Re: tax poll
Post by: Rage Against the McKee on June 24, 2021, 11:31:47 PM
Incentive stock options?  :dunno:
Title: Re: tax poll
Post by: bucket on June 24, 2021, 11:37:40 PM
Incentive stock options?  :dunno:

They are counted as income and are subject to the capital gains tax.
Title: Re: tax poll
Post by: sys on June 24, 2021, 11:39:28 PM
value of the option is taxable as ordinary income at exercise and any increase in value of the security as capital gains when the security is sold.


deferred, not avoided.
Title: Re: tax poll
Post by: Rage Against the McKee on June 24, 2021, 11:48:58 PM
Incentive stock options?  :dunno:

They are counted as income and are subject to the capital gains tax.

Quote
Why are Incentive Stock Options more favorable tax-wise?

When you exercise Incentive Stock Options, you buy the stock at a pre-established price, which could be well below actual market value. The advantage of an ISO is you do not have to report income when you receive a stock option grant or when you exercise that option.

You report the taxable income only when you sell the stock. And, depending on how long you own the stock, that income could be taxed at capital gain rates ranging from 0% to 23.8% (for sales in 2020)—typically a lot lower than your regular income tax rate.

https://www.google.com/amp/s/turbotax.intuit.com/tax-tips/investments-and-taxes/incentive-stock-options/amp/L4azWgfwy

 :dunno:
Title: Re: tax poll
Post by: sys on June 25, 2021, 12:19:47 AM
Quote
Why are Incentive Stock Options more favorable tax-wise?

When you exercise Incentive Stock Options, you buy the stock at a pre-established price, which could be well below actual market value. The advantage of an ISO is you do not have to report income when you receive a stock option grant or when you exercise that option.

You report the taxable income only when you sell the stock. And, depending on how long you own the stock, that income could be taxed at capital gain rates ranging from 0% to 23.8% (for sales in 2020)—typically a lot lower than your regular income tax rate.

https://www.google.com/amp/s/turbotax.intuit.com/tax-tips/investments-and-taxes/incentive-stock-options/amp/L4azWgfwy

 :dunno:

Quote
There is a catch with Incentive Stock Options, however: you do have to report that bargain element as taxable compensation for Alternative Minimum Tax (AMT) purposes in the year you exercise the options (unless you sell the stock in the same year). We'll explain more about the AMT later.


thinking about it a little more, though, there is some avoidance mixed in with the deferral.  i don't think it's typically a huge portion, but it's not nothing either.  when a normie buys an option (let's say with after tax income to make it comparable), there is a premium in the price along with whatever difference in value between the market price and exercise price.  when the option is granted, the recipient is only taxed (upon exercise) on the difference in value.  the value of the premium is not taxed.
Title: Re: tax poll
Post by: MakeItRain on June 25, 2021, 10:50:20 AM
The income tax they are avoiding isn't deferred... Our tax code allows these men, who are definitely drawing a significant salary, from actually claiming said salary.

how is this accomplished?

dunno but I'm 100% certain it could be figured out by people who have studied tax policy.
Title: Re: tax poll
Post by: kim carnes on June 25, 2021, 02:02:53 PM
Its odd to me that you can invest in a non-public company using a Roth.
Title: Re: tax poll
Post by: steve dave on June 25, 2021, 02:15:47 PM
Roth’s should probably be made illegal irl. They are a very easy way to do fun crap and never pay taxes on it.


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Title: Re: tax poll
Post by: Kat Kid on June 25, 2021, 02:46:32 PM
Its odd to me that you can invest in a non-public company using a Roth.
Self-directed allow you to do some wild stuff. You can buy an investment property.
Title: Re: tax poll
Post by: kim carnes on June 25, 2021, 03:55:26 PM
Its odd to me that you can invest in a non-public company using a Roth.
Self-directed allow you to do some wild stuff. You can buy an investment property.

Let’s say you own a few lumberyards worth 10 million, you can “sell” it to your son for 2k in his Roth, he can sell it tax free.  :eek:
Title: Re: tax poll
Post by: sys on June 25, 2021, 04:27:53 PM
dunno but I'm 100% certain it could be figured out by people who have studied tax policy.

hard to take very seriously the claim that this is not only possible, but common and a problem when no one can provide evidence that it exists.
Title: Re: tax poll
Post by: chum1 on June 25, 2021, 04:45:19 PM
I briefly read about self directed IRA. I decided it was not worth the effort to explore further.
Title: Re: tax poll
Post by: sys on June 25, 2021, 04:50:30 PM
Let’s say you own a few lumberyards worth 10 million, you can “sell” it to your son for 2k in his Roth, he can sell it tax free.  :eek:

you can do this, i suppose, but it's illegal.
Title: Re: tax poll
Post by: MakeItRain on June 25, 2021, 05:34:08 PM
dunno but I'm 100% certain it could be figured out by people who have studied tax policy.

hard to take very seriously the claim that this is not only possible, but common and a problem when no one can provide evidence that it exists.

Did you quote the wrong post? Are you referring to the claim that rich people hide income to avoid taxes? I haven't claimed anything beyond that, and you can't possibly be saying that is a problem that we don't know of its existence. Also I never said this was common. There are 100,000,000 tax payers in America and presumably the impetus of this thread was an article about 25 of those hundred million.
Title: Re: tax poll
Post by: sys on June 25, 2021, 06:30:15 PM
dunno but I'm 100% certain it could be figured out by people who have studied tax policy.

hard to take very seriously the claim that this is not only possible, but common and a problem when no one can provide evidence that it exists.

Did you quote the wrong post? Are you referring to the claim that rich people hide income to avoid taxes? I haven't claimed anything beyond that, and you can't possibly be saying that is a problem that we don't know of its existence. Also I never said this was common. There are 100,000,000 tax payers in America and presumably the impetus of this thread was an article about 25 of those hundred million.

yeah, i don't think there's a secret tax code that only billionaires know how to order off of.  every time i hear of one, when i look into it there's nothing there.  the grand tax dodge is either giving all your money away before it's taxed or deferring your income for as long as possible or some very boring thing that everyone knows about.

maybe the secret billionaire tax code exists, but i'd like someone who believes in it to track it down and point it out to me because i've looked a little bit and i can't find it.

i mean there are very definitely things in the tax code that advantage the very rich, but it's stuff that's right out in the open like depreciating real estate when real estate actually appreciates in value, taxing dividends at half the rate of ordinary income and crap like that.
Title: Re: tax poll
Post by: michigancat on June 25, 2021, 07:22:16 PM
Yeah they get a lot of incentives that require a lot of wealth to take advantage of. I think when someone calls for closing loopholes or whatever that's what they're generally referring to
Title: Re: tax poll
Post by: MakeItRain on June 25, 2021, 09:37:48 PM
Yeah they get a lot of incentives that require a lot of wealth to take advantage of. I think when someone calls for closing loopholes or whatever that's what they're generally referring to

This and I thought that was obvious. No one said anything about a secret tax code, just that the more money you have the easier it is to find loopholes. TIL this wasn't rudimentary tax code knowledge.
Title: Re: tax poll
Post by: chum1 on June 25, 2021, 09:47:29 PM
No one is going to be like, "oh, I guess what I was thinking was a loophole isn't really a loophole. So, I'm reversing my prior view and now think it's great for Warren Buffett to pay a lower tax rate than his secretary."
Title: Re: tax poll
Post by: sys on June 25, 2021, 10:23:34 PM
No one is going to be like, "oh, I guess what I was thinking was a loophole isn't really a loophole. So, I'm reversing my prior view and now think it's great for Warren Buffett to pay a lower tax rate than his secretary."

i'm aware of this anecdote, but i don't know the specifics of buffett's income in that year.

regardless, the main reason buffett doesn't pay massive amounts of taxes are 1 (and about 99% of it).  he doesn't realize most of his potential income in any given year, and 2 (and like 1% of it).  most of his realized income is presumably capital gains which is taxed at a lower rate than ordinary income.

so i would not characterize that difference as a loophole.  the capital gains and ordinary income rates are headline items.  like among the top 3 or 4 most salient features of the tax code.  calling it a loophole when it's been a featured point of our tax code for as long as i can recall doesn't make much sense to me.  hell, i can remember board socialist kat kid defending that feature in a previous tax discussion when i was advocating for higher rates on capital gains.

more to the point.  the discussion mir and i were having was touched off by a disagreement as to whether taxes were being deferred or avoided.  in the case of buffett, they are very clearly being deferred (i believe he's stated that his plan is to eventually avoid most of those deferred taxes by giving away all his money, which debate if charitable deductions makes sense as tax policy all you want, but as a super clever and nefarious scheme to not pay taxes, giving all your money away just doesn't impress me much)
Title: Re: tax poll
Post by: sys on June 25, 2021, 10:32:07 PM
i know we've all decided that the problem with america is the enormously rich and not the salt of the earth medium rich, but there seem to me to be a lot more mechanisms for the medium rich to pay almost no taxes than the enormously rich.

like the 11 m exemption on estate tax.  doesn't much effect the tax bill buffett's heirs would pay if he doesn't disinherit them first, but plenty of berkshire hathaway shareholders will slip millions of dollars to their heirs without anyone ever paying a cent in taxes because of that exemption.
Title: Re: tax poll
Post by: catastrophe on June 25, 2021, 11:56:34 PM
Personally I support generally higher taxes on the medium rich to rich, and a wealth tax on the super rich. I think it’s silly to act like the focus should be on a system that treats everyone the same (e.g., making sure we’ve closed all income tax loop holes for the super rich).
Title: Re: tax poll
Post by: Kat Kid on June 26, 2021, 06:51:25 AM
i know we've all decided that the problem with america is the enormously rich and not the salt of the earth medium rich, but there seem to me to be a lot more mechanisms for the medium rich to pay almost no taxes than the enormously rich.

like the 11 m exemption on estate tax.  doesn't much effect the tax bill buffett's heirs would pay if he doesn't disinherit them first, but plenty of berkshire hathaway shareholders will slip millions of dollars to their heirs without anyone ever paying a cent in taxes because of that exemption.
I think it is both true that the absolute rates on middle class should be higher and that when you have billions of dollars you can be made to pay specific taxes meant to reduce your wealth.

I know you keep saying “give away” but lots and lots of rich people just use this to effectively advance their political goals, so let’s cut the bullshit.
Title: Re: tax poll
Post by: chum1 on June 26, 2021, 07:41:47 AM
No one is going to be like, "oh, I guess what I was thinking was a loophole isn't really a loophole. So, I'm reversing my prior view and now think it's great for Warren Buffett to pay a lower tax rate than his secretary."

i'm aware of this anecdote, but i don't know the specifics of buffett's income in that year.

regardless, the main reason buffett doesn't pay massive amounts of taxes are 1 (and about 99% of it).  he doesn't realize most of his potential income in any given year, and 2 (and like 1% of it).  most of his realized income is presumably capital gains which is taxed at a lower rate than ordinary income.

so i would not characterize that difference as a loophole.  the capital gains and ordinary income rates are headline items.  like among the top 3 or 4 most salient features of the tax code.  calling it a loophole when it's been a featured point of our tax code for as long as i can recall doesn't make much sense to me.  hell, i can remember board socialist kat kid defending that feature in a previous tax discussion when i was advocating for higher rates on capital gains.

more to the point.  the discussion mir and i were having was touched off by a disagreement as to whether taxes were being deferred or avoided.  in the case of buffett, they are very clearly being deferred (i believe he's stated that his plan is to eventually avoid most of those deferred taxes by giving away all his money, which debate if charitable deductions makes sense as tax policy all you want, but as a super clever and nefarious scheme to not pay taxes, giving all your money away just doesn't impress me much)
i know we've all decided that the problem with america is the enormously rich and not the salt of the earth medium rich, but there seem to me to be a lot more mechanisms for the medium rich to pay almost no taxes than the enormously rich.

like the 11 m exemption on estate tax.  doesn't much effect the tax bill buffett's heirs would pay if he doesn't disinherit them first, but plenty of berkshire hathaway shareholders will slip millions of dollars to their heirs without anyone ever paying a cent in taxes because of that exemption.

I really think that, on a simple level, the ordinary person understands that people with higher than ordinary net worth do not pay a significantly higher than ordinary percentage of net worth in taxes. Many people think they should. That's a legit view. I think it's the sentiment Buffett captured in his example.
Title: Re: tax poll
Post by: kim carnes on June 26, 2021, 02:26:53 PM
i know we've all decided that the problem with america is the enormously rich and not the salt of the earth medium rich, but there seem to me to be a lot more mechanisms for the medium rich to pay almost no taxes than the enormously rich.

like the 11 m exemption on estate tax.  doesn't much effect the tax bill buffett's heirs would pay if he doesn't disinherit them first, but plenty of berkshire hathaway shareholders will slip millions of dollars to their heirs without anyone ever paying a cent in taxes because of that exemption.

Business owners have by far the most opportunities to avoid taxes.  High W2 earners get shafted tax wise.
Title: Re: tax poll
Post by: sys on June 26, 2021, 03:06:58 PM
I know you keep saying “give away” but lots and lots of rich people just use this to effectively advance their political goals, so let’s cut the bullshit.

either way you don't have the money anymore and your kids hate you.
Title: Re: tax poll
Post by: Kat Kid on June 26, 2021, 06:11:05 PM
I know you keep saying “give away” but lots and lots of rich people just use this to effectively advance their political goals, so let’s cut the bullshit.

either way you don't have the money anymore and your kids hate you.
I think something like the Mercatus Center or Heritage Foundation has positive ROI
Title: Re: tax poll
Post by: Spracne on June 26, 2021, 06:17:56 PM
i know we've all decided that the problem with america is the enormously rich and not the salt of the earth medium rich, but there seem to me to be a lot more mechanisms for the medium rich to pay almost no taxes than the enormously rich.

like the 11 m exemption on estate tax.  doesn't much effect the tax bill buffett's heirs would pay if he doesn't disinherit them first, but plenty of berkshire hathaway shareholders will slip millions of dollars to their heirs without anyone ever paying a cent in taxes because of that exemption.

Business owners have by far the most opportunities to avoid taxes.  High W2 earners get shafted tax wise.

You're welcome, America.
Title: Re: tax poll
Post by: sys on June 26, 2021, 06:55:17 PM
I think something like the Mercatus Center or Heritage Foundation has positive ROI

if so, then their attempt to avoid taxes was thwarted.
Title: Re: tax poll
Post by: Kat Kid on June 26, 2021, 09:20:46 PM
I view them as basically tax free lobbying so no, Uncle Sam missed his cut.
Title: Re: tax poll
Post by: sys on June 26, 2021, 10:03:02 PM
well, he'll get to tax the returns on the investment.
Title: Re: tax poll
Post by: sys on July 06, 2021, 06:31:54 PM
I'd have to read up on it more but I thought there was some amount of merit towards having the capital gains be lower taxed than regular income (but maybe it's small enough that it's meh let's make them the same)

with interest rates under 2% on the ten year, i can't think of any merit.  we aren't short on investment capital.


on the estate tax thing, the 400k pledge was stupid (as policy, probably good politics) and they should not let it hold them back from making needed changes that would impact like 3 people in the entire rough ridin' country.
Title: Re: tax poll
Post by: chum1 on July 20, 2021, 10:35:53 AM
Hell yes. Impeccable timing.

https://twitter.com/SenWarren/status/1417483379235299340
Title: Re: tax poll
Post by: MadCat on July 20, 2021, 11:17:30 AM
Politicians not exempt
Title: Re: tax poll
Post by: kim carnes on July 20, 2021, 01:28:20 PM
I’m fine with a wealth tax and increasing capital gains tax as long as we repeal the salt cap but that will never happen.
Title: Re: tax poll
Post by: chum1 on August 30, 2023, 10:22:28 PM
Pretty obvious where they should be focusing more of their efforts than they do currently.

https://twitter.com/JHWeissmann/status/1696968203358863415
Title: Re: tax poll
Post by: chum1 on November 16, 2023, 04:18:34 PM
These never cease to amaze me.

https://twitter.com/JStein_WaPo/status/1725228522040406193
Title: Re: tax poll
Post by: kim carnes on November 16, 2023, 04:29:01 PM
What’s your point Walter??
Title: Re: tax poll
Post by: chum1 on November 16, 2023, 04:49:04 PM
What’s your point Walter??

Ever read any books on wealth inequality? It'd be a good place to start.
Title: Re: tax poll
Post by: MadCat on November 16, 2023, 04:50:37 PM
Makes me wonder if the top 2.5% control 50% of household wealth, just for the sake of symmetry
Title: Re: tax poll
Post by: BIG APPLE CAT on November 16, 2023, 06:20:11 PM
Guess I had completely missed this thread. But I believe the way the ultra wealthy manage the whole “unrecognized gains” or whatever is that they can still count those unrecognized gains as an asset that they can borrow against and they do precisely that and the banks are happy to loan them money and even when sky high interest rates those still are nothing close to even the lowest of income tax rates.

So they can say their assets are make believe, but they can still use them as leverage to get as much cheap money as they want, whenever they want.
Title: Re: tax poll
Post by: steve dave on November 16, 2023, 07:17:09 PM
Guess I had completely missed this thread. But I believe the way the ultra wealthy manage the whole “unrecognized gains” or whatever is that they can still count those unrecognized gains as an asset that they can borrow against and they do precisely that and the banks are happy to loan them money and even when sky high interest rates those still are nothing close to even the lowest of income tax rates.

So they can say their assets are make believe, but they can still use them as leverage to get as much cheap money as they want, whenever they want.

yes, but they don't pay sky high interest rates. banks are happy to loan them money at not much more than the fed rate. obviously varies by person but if you're in position to do this to avoid the tax man you can get prime rates.
Title: Re: tax poll
Post by: star seed 7 on November 16, 2023, 07:26:04 PM
I'm looking forward to having very little taxable income next year and finally living as the taker ksuw always assumed I was
Title: Re: tax poll
Post by: IPA4Me on November 16, 2023, 08:11:25 PM
Guess I had completely missed this thread. But I believe the way the ultra wealthy manage the whole “unrecognized gains” or whatever is that they can still count those unrecognized gains as an asset that they can borrow against and they do precisely that and the banks are happy to loan them money and even when sky high interest rates those still are nothing close to even the lowest of income tax rates.

So they can say their assets are make believe, but they can still use them as leverage to get as much cheap money as they want, whenever they want.

yes, but they don't pay sky high interest rates. banks are happy to loan them money at not much more than the fed rate. obviously varies by person but if you're in position to do this to avoid the tax man you can get prime rates.
And if taxes are a bit more than you want to pay, you do a little tax harvesting. Bang. Lower tax bills. Smart.
Title: Re: tax poll
Post by: steve dave on November 16, 2023, 08:15:22 PM
I wonder if your creditor has to eat the taxes on your unrealized (now realized) gains when they execute on the collateral? I bet they just acquire it at market value. Really pound the American taxpayer again on the way out.
Title: Re: tax poll
Post by: sys on November 17, 2023, 06:11:52 PM
I wonder if your creditor has to eat the taxes on your unrealized (now realized) gains when they execute on the collateral? I bet they just acquire it at market value. Really pound the American taxpayer again on the way out.

the debtor would be responsible for any capital gains realized in a forced sale.
Title: Re: tax poll
Post by: steve dave on November 17, 2023, 07:20:56 PM
I wonder if your creditor has to eat the taxes on your unrealized (now realized) gains when they execute on the collateral? I bet they just acquire it at market value. Really pound the American taxpayer again on the way out.

the debtor would be responsible for any capital gains realized in a forced sale.

american taxpayer takes the pipe
Title: Re: tax poll
Post by: sys on November 17, 2023, 07:50:32 PM
american taxpayer takes the pipe

taxes would be collected the same as in any other sale.
Title: Re: tax poll
Post by: steve dave on November 17, 2023, 08:26:08 PM
american taxpayer takes the pipe

taxes would be collected the same as in any other sale.
Do you mean debtee? If the debtor gets transacted on they aren’t paying crap. Collect what you “can” chumps.
Title: Re: tax poll
Post by: sys on November 17, 2023, 09:02:04 PM
no, i mean the debtor.
Title: Re: tax poll
Post by: Spracne on November 17, 2023, 09:37:40 PM
no, i mean the debtor.

You talkin' like a UCC Art. 9 security interest? I'd never really thought about it. What happens if there's still a deficiency? Do you mean to tell me you can grab my stonks, then I have to pay taxes on the "realized" "gains," then I still owe you money?
Title: Re: tax poll
Post by: steve dave on November 17, 2023, 09:51:19 PM
no, i mean the debtor.
Yeah, I get how it “works”. And yet


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Title: Re: tax poll
Post by: Spracne on November 17, 2023, 10:07:46 PM
Also, steve dave looks like a fool throwing the term "debtee" out there.
Title: Re: tax poll
Post by: steve dave on November 17, 2023, 10:38:25 PM
Also, steve dave looks like a fool throwing the term "debtee" out there.

BITCH NOPE

(https://static.vecteezy.com/system/resources/previews/024/125/065/original/yellow-emoticon-3d-icon-angry-facial-expression-generative-ai-png.png)
Title: Re: tax poll
Post by: Spracne on November 17, 2023, 11:04:57 PM
I believe you're looking for the word "creditor." What is this, 18th Century England?
Title: Re: tax poll
Post by: sys on November 17, 2023, 11:20:17 PM
no, i mean the debtor.

You talkin' like a UCC Art. 9 security interest? I'd never really thought about it. What happens if there's still a deficiency? Do you mean to tell me you can grab my stonks, then I have to pay taxes on the "realized" "gains," then I still owe you money?

if we're still talking about loans to the uber rich guaranteed by liquid assets, i'm fairly confident that those loans are made at a small fraction of the asset value and have covenants that would force action long before those assets would be insufficient to cover both the debt and possible taxes.

if we're talking bankrupcy or something like that, i think the assets would probably have a tax lien on them prior to sale?  i dunno, i'm not the lawyer here.
Title: Re: tax poll
Post by: steve dave on November 17, 2023, 11:25:54 PM
no, i mean the debtor.

You talkin' like a UCC Art. 9 security interest? I'd never really thought about it. What happens if there's still a deficiency? Do you mean to tell me you can grab my stonks, then I have to pay taxes on the "realized" "gains," then I still owe you money?

if we're still talking about loans to the uber rich guaranteed by liquid assets, i'm fairly confident that those loans are made at a small fraction of the asset value and have covenants that would force action long before those assets would be insufficient to cover both the debt and possible taxes.

if we're talking bankrupcy or something like that, i think the assets would probably have a tax lien on them prior to sale?  i dunno, i'm not the lawyer here.
YOU SEEMED LIKE A LAWYER A MINITE AGO BITCH!


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Title: Re: tax poll
Post by: sys on November 17, 2023, 11:32:08 PM
you know i'm right.
Title: Re: tax poll
Post by: Kat Kid on November 18, 2023, 08:02:09 AM
Does Sam bank-man Fried owe taxes? Well his ass is about to be in prison living HIGH ON THE HOG ON THE BACK OF TAXPAYERS!
Title: Re: tax poll
Post by: catastrophe on November 18, 2023, 08:37:19 AM
no, i mean the debtor.

You talkin' like a UCC Art. 9 security interest? I'd never really thought about it. What happens if there's still a deficiency? Do you mean to tell me you can grab my stonks, then I have to pay taxes on the "realized" "gains," then I still owe you money?

if we're still talking about loans to the uber rich guaranteed by liquid assets, i'm fairly confident that those loans are made at a small fraction of the asset value and have covenants that would force action long before those assets would be insufficient to cover both the debt and possible taxes.

if we're talking bankrupcy or something like that, i think the assets would probably have a tax lien on them prior to sale?  i dunno, i'm not the lawyer here.
I’m not so sure the government can put a tax lien on something when the taxes aren’t owed yet. Isn’t that the point that started this whole thing?
Title: Re: tax poll
Post by: Spracne on November 18, 2023, 01:23:51 PM
I think Stephen David got a bit litty titty in here last night.  :party:
Title: Re: tax poll
Post by: wetwillie on November 18, 2023, 01:43:29 PM
This thread is taxing