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Wealth Tax

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  • FunkDoc83 FunkDoc83 
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    With all the political rhetoric coming from left, does anyone think there will be a new wealth tax in their lifetime?  This kind of concerns me because I feel like we are going to be penalized for being responsible savers.

    #197797 Reply
    Liked by Tim, HikingDO, Kamban
    Lordosis Lordosis 
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    I certainly hope not.  I feel a little safer since there are a large amount of politicians who come from wealth.  I think they understand this game just as well as us and would not actively push something that would hurt themselves and their family.

    It also seems wrong to tax money that was already taxed.

    Also it would be another blow to entrepreneurship and responsible savings as you mentioned.

    “Never let your sense of morals prevent you from doing what is right.”

    #197800 Reply
    q-school q-school 
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    what do we think of as a wealth tax?

     

    #197802 Reply
    FunkDoc83 FunkDoc83 
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    what do we think of as a wealth tax?

     

    Click to expand…

    I know there are already things in place like estate taxes and others to claw back some money from the wealth, but imagine a 2-3% tax on anyone above a certain net worth per year.  No one knows what will happen with taxes in the future, but I hate the idea of being the bad guy and being accused of not paying my fair share.

    #197803 Reply
    q-school q-school 
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    what do we think of as a wealth tax?

     

    Click to expand…

    I know there are already things in place like estate taxes and others to claw back some money from the wealth, but imagine a 2-3% tax on anyone above a certain net worth per year.  No one knows what will happen with taxes in the future, but I hate the idea of being the bad guy and being accused of not paying my fair share.

    Click to expand…

    get used to it.

    no matter how much you pay, some will still think you are not paying your fair share.  🙂

    if that’s your definition, then yes absolutely there will be new wealth taxes.

    means testing likely in my opinion.  inheritance taxes in addition to state taxes.  higher rates for higher incomes for medicare.

     

    #197810 Reply
    Zaphod Zaphod 
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    A wealth tax like a % upon net worth or something per year is probably far too complex to ever be enacted. Not saying they wouldnt try to think about it, but in the end you would have a myriad of issues and the complexity explodes exponentially. For example, how do you handle ownership in companies like say Bezos of Amazon? One year he’s worth 100 billion and in a recession/takeover/scandal its 40 million. Does that one payment at 100 cover or give him a rebate in perpetuity? Mark to market, write downs, tangible wealth, etc…forecasts, its just exceedingly complex and in the end entirely unnecessary.

    You already have wealth taxes, they are called property taxes. This would be a much simpler way to target those you’re after. Maybe make property taxes progressive, institute an estate tax that actually captures some people, or make income taxes more progressive and continue so up the chain in the billions range. All of that is light years easier than the other proposed wealth taxes.

    Im not saying Im for/against any of those, just that the former is wildly complex, but of course in politics there is a huge difference in rhetoric to gain support and what actually could work in reality.

    #197816 Reply
    q-school q-school 
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    Splash Refinancing Bonus

    A wealth tax like a % upon net worth or something per year is probably far too complex to ever be enacted. Not saying they wouldnt try to think about it, but in the end you would have a myriad of issues and the complexity explodes exponentially. For example, how do you handle ownership in companies like say Bezos of Amazon? One year he’s worth 100 billion and in a recession/takeover/scandal its 40 million. Does that one payment at 100 cover or give him a rebate in perpetuity? Mark to market, write downs, tangible wealth, etc…forecasts, its just exceedingly complex and in the end entirely unnecessary.

    You already have wealth taxes, they are called property taxes. This would be a much simpler way to target those you’re after. Maybe make property taxes progressive, institute an estate tax that actually captures some people, or make income taxes more progressive and continue so up the chain in the billions range. All of that is light years easier than the other proposed wealth taxes.

    Im not saying Im for/against any of those, just that the former is wildly complex, but of course in politics there is a huge difference in rhetoric to gain support and what actually could work in reality.

    Click to expand…

    yes but sometimes politicians use the tried and true method of approving things without reading them.

    this is congress!  close your ears, open your mouth, and get in there!   don’t take no for an answer!

    🙂

    #197821 Reply
    Liked by nachos31
    Avatar Kamban 
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    I think it is due to squawking by a particular presidential candidate who has snowball’s chance in hell of being a POTUS due to her extreme unlikability, but it gets traction due to media reporting on every freebee she is throwing out in order to get votes.

    How can one even get to verify or dispute anyone’s wealth at any time, especially if their holdings are  spread out in different investment instruments whose valuation is difficult and not frequently checked.

    #197834 Reply
    The White Coat Investor The White Coat Investor 
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    I doubt it. It’s just too hard to administer. Income is far easier to track. Honestly though, I think a VAT/FAIR tax would be a better idea- tax consumption instead of income to incentivize working and disincentivize spending. But how we get to there from here would be very tricky. I recommend the book Taxing Ourselves for a non-partisan, unbiased discussion on the subject.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #197837 Reply
    Zaphod Zaphod 
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    I think it is due to squawking by a particular presidential candidate who has snowball’s chance in hell of being a POTUS due to her extreme unlikability, but it gets traction due to media reporting on every freebee she is throwing out in order to get votes.

    How can one even get to verify or dispute anyone’s wealth at any time, especially if their holdings are  spread out in different investment instruments whose valuation is difficult and not frequently checked.

    Click to expand…

    The complexity is simply mind blowing and frankly impossible.

    #197847 Reply
    Lordosis Lordosis 
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    It seems that a Federal sales tax would do that but I worry that even if they lower income tax to compensate it may not stay lowered.  Also I worry that disincentivizing spending/consumption would hurt the economy. Amazon is big because Americans want it and want it now (or in 2 days)

    “Never let your sense of morals prevent you from doing what is right.”

    #197848 Reply
    Zaphod Zaphod 
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    It seems that a Federal sales tax would do that but I worry that even if they lower income tax to compensate it may not stay lowered.  Also I worry that disincentivizing spending/consumption would hurt the economy. Amazon is big because Americans want it and want it now (or in 2 days)

    Click to expand…

    What? Only about 70% of GDP is consumption, we’d be fine…

    #197850 Reply
    Liked by Lordosis
    Avatar Jack_Sparrow 
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    I don’t think their will ever be a tax on net worth. I think they will probably look to do the following..

    1) Increase cap on taxable social security wages without paying out more benefits to the rich.

    1A) Adding tax brackets to social security/medicare taxes.

    3) Generally adding more tax brackets on the current tax code.

    4) Eliminating the capital gains tax and considering it income.

     

    #197851 Reply
    Liked by q-school
    Avatar jhwkr542 
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    With all the political rhetoric coming from left, does anyone think there will be a new wealth tax in their lifetime?

    Click to expand…

    Not a chance.  As mentioned, way too hard to administer.  It’d be politically challenging as well to enact and to not get thrown out.  I think it’s all rhetoric to fire up the base, not much different than a border wall.  Both of them just stupid ideas.

    #197854 Reply
    Avatar Panscan 
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    They should just remove deductions and it would accomplish the same thing and then we don’t need a bloated multi billion dollar government government organization to quasi monitor it.

    #197864 Reply
    Liked by Dusn, ENT Doc

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