Thread

1. DataDive · 1789652120 · focus · HN ↗

   What happens if some of those tax the unrealized gains bills pass in some country where they have obligations?

   They would have to either pay the tax on gains or write off losses.

   1. philipallstar · 1789652603 · focus · HN ↗

      Surely only an absolute lunatic would pass that sort of law. And by then it's too late, because it's Socialism with extra steps.

      1. sebzim4500 · 1789652770 · focus · HN ↗

         Doesn't Switzerland do this instead of capital gains? Makes sense IMO, much better to tax wealth than discourage transactions.

         1. spacebanana7 · 1789655095 · focus · HN ↗

            Taxing capital assets by taking large portions of their value destroys value by forcing liquidity events. Think forcing sales of farms, factories and domain names.

            I much prefer land value taxes (and similar taxes on non capital wealth like jewellery) and leisure taxes (ideally taxing people for every hour they don't work). Of course these are difficult to administer in practice, but British business rates and US overtime tax discounts effectively approximate this.

            1. bitmasher9 · 1789656410 · focus · HN ↗

               The idea of taxing people for not working an hour sounds incredibly dystopian.

               1. fl4regun · 1789664473 · focus · HN ↗

                  Not as dystopian as the ability to get wealthier without working and pay no taxes (and even IF you sell to realize gains, your tax liability is still lower than someone who made money through labour)

                  1. philipallstar · 1789730132 · focus · HN ↗

                     Your definition of "wealthier" is stupid, though, because it relies on a measure that doesn't actually apply to the person in question. A share's price is just "the last sale price of the same type of share", and that is multiplied by the person's shareholding to get their "wealth". However they don't have any more money by this happening - it's just a huge assumption that the share price would stay the same across all their shares if they sold right now.

                     The time we actually know what money they would make, making it concrete for tax, is when they sell. And we already do this.

                     1. fl4regun · 1789758243 · focus · HN ↗

                        There's multiple advantages to making money from equities that people who make money from ordinary income simply do not have, favourable tax rates, the ability to choose when and how much to realize, the ability to loss harvest, compound interest, everything around how we tax these 2 forms of income is set up to beget inequality.

                        1. philipallstar · 1789982485 · focus · HN ↗

                           > everything around how we tax these 2 forms of income is set up to beget inequality

                           No it's not. Most people don't pay capital gains because things like houses don't have capital gains applied. I.e. the rules are set up so that most people avoid capital gains tax when they gain capital. Everyone pays income tax with the same rules, and some people pay capital gains tax as well if their risks pay off. We tax the profits and let investors absorb the losses.

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