37% federal plus 5-10% state, plus additional Medicare tax and 3.8% investment income tax and a bunch of others, not good enough for you? That’s literally approaching 50% what’s your problem?
The problem is that once you are super rich you don’t really have an income anymore. You just expand your wealth and you end up paying way less taxes on that.
This is something that the common mortal can’t even think of.
That’s literally exactly what I’m advocating for word for word. Wealth tax bad, income tax good. Income tax rate too low? Crank it up to your hearts content. Glad we agree.
A majority of wealth doesn’t come from income so would never be touched by income tax. A “wealth tax” is just a broad term meaning that they should be taxed on the wealth fairly. Like capital gains for instance is a doozy. Way less taxation than what you likely pay (percentage wise obviously).
So “wealth tax” would include an income tax, capital tax, estate tax etc, all just at rates that are equivalent to how well the system treats them. They get a much larger advantage off the system that is set up than most others.
And the ultra wealthy don’t even always have an income. You think Bezos has a salary right now that’s significantly attributing to his wealth? Or Buffet or even Zuckerberg? I forget, his his salary still $1 a year? You want to tax only that?
But they’re literally not counted under income tax law. So you’re essentially arguing for the exact same thing if you want it to count under some sort of tax.
Edit: short term capital gains is the only one that counts as income. Long term is not and is severely under taxed compared to income tax. Like, I like your intentions, but you’re severely fucking up the details and it details your entire motivation and intentions.
You’re funny. I hate pulling rank but you’re tangling with a cpa who specializes in tax for high and ultra high net worth individuals. The audacity of telling an SME they are wrong about a technical subject in their own field, lmao!
Long term capital gains are taxed preferentially up to 23.8% under current tax law. Unrealized capital gains can be deferred indefinitely, but one way or another, they will be taxed, either when they’re sold or after death via estate tax.
If you’re upset about the preferential treatment of LTCG then be comforted knowing there’s an extra layer of corporate tax above those gains, so in the end it evens out to something closer to 40% when all is said and done. If that still isn’t enough for you then just crank up the tax rate.
Once again, income tax is just fine, no need for a wealth tax. Banish the thought.
The upper-class does not rely on income the same way the middle and lower class do. Taxing income affects us much more than it does them, that’s why you institute a wealth tax to spread the burden.
You simply don’t understand. All income flows into wealth. All wealth is eventually becomes, one way or another, taxable income. You can defer it for a while but it’s literally all the same thing.
You’re talking about legislating a massive clusterfuck, like you can’t even imagine how messy it would be, that pretty much nobody would comply with free of errors and omissions, all over a timing difference.
Just please, I’m fucking begging you, stop talking about a wealth tax, especially when you don’t understand how tax works to begin with.
Income tax is just fine thanks.
deleted by creator
37% federal plus 5-10% state, plus additional Medicare tax and 3.8% investment income tax and a bunch of others, not good enough for you? That’s literally approaching 50% what’s your problem?
I fail to see the problem with your statement.
50% when you are Uber rich isn’t even that much. In plenty of countries you have that at a much lower level of income. Perfectly doable and fine
So crank it up to 60, 70, or 99%! You don’t need a wealth tax to do that.
Why not both?
The problem is that once you are super rich you don’t really have an income anymore. You just expand your wealth and you end up paying way less taxes on that.
This is something that the common mortal can’t even think of.
You’re delusional. High and UHNW individuals also tend to have high income.
Income expands wealth. Unrealized income will be taxed eventually.
Thank god you’re here to tell us these things. Did you get your accounting degree from university of american samoa too? Please just stop
37% federal means you are in the tax bracket that makes over $578,000/year. You’ll be just fine with several more percentage points added on.
That’s literally exactly what I’m advocating for word for word. Wealth tax bad, income tax good. Income tax rate too low? Crank it up to your hearts content. Glad we agree.
So then add more percentage points. You don’t need a wealth tax to do that. Income tax is fine.
A majority of wealth doesn’t come from income so would never be touched by income tax. A “wealth tax” is just a broad term meaning that they should be taxed on the wealth fairly. Like capital gains for instance is a doozy. Way less taxation than what you likely pay (percentage wise obviously).
So “wealth tax” would include an income tax, capital tax, estate tax etc, all just at rates that are equivalent to how well the system treats them. They get a much larger advantage off the system that is set up than most others.
And the ultra wealthy don’t even always have an income. You think Bezos has a salary right now that’s significantly attributing to his wealth? Or Buffet or even Zuckerberg? I forget, his his salary still $1 a year? You want to tax only that?
You don’t get it. Unrealized capital gains are just deferred income. It’ll be taxed eventually. Income tax is fine, banish the thought of wealth tax.
But they’re literally not counted under income tax law. So you’re essentially arguing for the exact same thing if you want it to count under some sort of tax.
Edit: short term capital gains is the only one that counts as income. Long term is not and is severely under taxed compared to income tax. Like, I like your intentions, but you’re severely fucking up the details and it details your entire motivation and intentions.
deleted by creator
You’re funny. I hate pulling rank but you’re tangling with a cpa who specializes in tax for high and ultra high net worth individuals. The audacity of telling an SME they are wrong about a technical subject in their own field, lmao!
Long term capital gains are taxed preferentially up to 23.8% under current tax law. Unrealized capital gains can be deferred indefinitely, but one way or another, they will be taxed, either when they’re sold or after death via estate tax.
If you’re upset about the preferential treatment of LTCG then be comforted knowing there’s an extra layer of corporate tax above those gains, so in the end it evens out to something closer to 40% when all is said and done. If that still isn’t enough for you then just crank up the tax rate.
Once again, income tax is just fine, no need for a wealth tax. Banish the thought.
The upper-class does not rely on income the same way the middle and lower class do. Taxing income affects us much more than it does them, that’s why you institute a wealth tax to spread the burden.
You simply don’t understand. All income flows into wealth. All wealth is eventually becomes, one way or another, taxable income. You can defer it for a while but it’s literally all the same thing.
You’re talking about legislating a massive clusterfuck, like you can’t even imagine how messy it would be, that pretty much nobody would comply with free of errors and omissions, all over a timing difference.
Just please, I’m fucking begging you, stop talking about a wealth tax, especially when you don’t understand how tax works to begin with.