The measure would have imposed a one-time 5% tax on the wealth of Californians whose net worth exceeds $1 billion. It would have been the first tax of its kind in the nation.
If I am given a stock that is worth $1. I pay taxes on the $1 because $1 is income.
If the stock goes to $2. Do I automatically owe the government more tax?
Now if I take my $1 stock that is now worth $2 and trade it for a 2 dollar bill. Do I automatically owe the government more tax?
But if I take out a $1 loan and use my $1 stock that is now worth $2 as collateral, I do owe taxes?
If you have a billion dollar business and you leverage $100 million for a loan, whatever you leverage ought to be taxed and considered income if you ask me.
Lets say I have $10,000 in total assets (car included) and I leverage my car worth $1,000 for a loan. You expect me to pay taxes on that $1,000 loan like it was income? Why would a business be different?
If I am given a stock that is worth $1. I pay taxes on the $1 because $1 is income.
If the stock goes to $2. Do I automatically owe the government more tax?
Now if I take my $1 stock that is now worth $2 and trade it for a 2 dollar bill. Do I automatically owe the government more tax?
But if I take out a $1 loan and use my $1 stock that is now worth $2 as collateral, I do owe taxes?
Lets say I have $10,000 in total assets (car included) and I leverage my car worth $1,000 for a loan. You expect me to pay taxes on that $1,000 loan like it was income? Why would a business be different?