Stories
Slash Boxes
Comments

SoylentNews is people

posted by martyb on Sunday April 07 2019, @12:19AM   Printer-friendly

April 2, 2019

Sen. Ron Wyden of Oregon, the ranking Democrat on the Senate Finance Committee, announced today that he would soon release a proposal to eliminate massive tax breaks enjoyed by the wealthy on their capital gains income. If successful, the proposal would ensure that income from wealth is taxed just like income from work.

His plan, which he has promised to flesh out in a white paper in the coming weeks, would tax the appreciation of assets owned by the very wealthy as income each year, an approach known as mark-to-market taxation. It would also subject that income to ordinary tax rates rather than special, lower income tax rates that apply to capital gains.

https://itep.org/sweeping-reform-would-tax-capital-gains-like-ordinary-income/
https://www.wsj.com/articles/top-democrat-proposes-annual-tax-on-unrealized-capital-gains-11554217383


Original Submission

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 5, Insightful) by Runaway1956 on Sunday April 07 2019, @06:38AM (4 children)

    by Runaway1956 (2926) Subscriber Badge on Sunday April 07 2019, @06:38AM (#825679) Journal

    Many people, especially socialists, forget that. For us little guys, we need to explain how that works.

    You get a pretty good job, and you're putting money into a savings account for a home, a car, or whatever. At the end of the year, you're doing your income taxes. A new line on the form asks "How much money do you have in savings accounts?" You fill it in, let's say $20,000. The next line says "multiply by .08" and the result is $1600. And, then, you are instructed to "Add this amount to "taxes due" line below." You have (presumably) already paid income tax on all of that money, but now gubbermint wants ANOTHER bite out of that same money.

    Worse - whatever you were saving that money for has been delayed until you can replace the $1600 that gubbermint has just confiscated from you.

    Here, people favoring taxing the wealthy will explain, "Well, the first $250,000 will be exempt!" Great. Since you're going to exempt most people, it justifies robbing some people. Just great.

    Starting Score:    1  point
    Moderation   +3  
       Insightful=2, Informative=1, Total=3
    Extra 'Insightful' Modifier   0  
    Karma-Bonus Modifier   +1  

    Total Score:   5  
  • (Score: 2) by exaeta on Sunday April 07 2019, @06:26PM (2 children)

    by exaeta (6957) on Sunday April 07 2019, @06:26PM (#825875) Homepage Journal

    Taking savings doesn't fix the real issue, bonds and lack of inflation.

    Government bonds are thd main cause of wealth inequality. It allows the rich to get richer by doing nothing.

    A simple solution is to limit the ownership in bonds to a fixed amount, where anyone who already exceeds this amount cannot purchase new ones.

    Or $20k limit in yearly bond purchases by individuals would solve most prroblems, I think. Or a limit of $250k in bond ownership? Either one would probably force the economy back into gear.

    Removing regulations would also help, or at least removing the IP law barriers to legal compliance with regulations. As usual the rich place boundaries to financial mobility for the middle class.

    --
    The Government is a Bird
    • (Score: 0) by Anonymous Coward on Monday April 08 2019, @02:08AM (1 child)

      by Anonymous Coward on Monday April 08 2019, @02:08AM (#826036)

      Government bonds are thd main cause of wealth inequality. It allows the rich to get richer by doing nothing.

      ???? You have an...uhhhh...interesting view of the world.

      A simple solution is to limit the ownership in bonds to a fixed amount, where anyone who already exceeds this amount cannot purchase new ones.

      Whatever, Don Quixote. Tilt at that windmill, if you must. Go for it!

      • (Score: 2) by exaeta on Saturday April 20 2019, @11:08PM

        by exaeta (6957) on Saturday April 20 2019, @11:08PM (#832755) Homepage Journal

        Many problems have simple solutions that are not as radical as the ones people will propose.

        A big problem can have a small solution, due to the butterfly effect.

        And likewise, a large problem can be caused by a small law.

        --
        The Government is a Bird
  • (Score: 0) by Anonymous Coward on Sunday April 07 2019, @07:42PM

    by Anonymous Coward on Sunday April 07 2019, @07:42PM (#825913)

    You are already taxed on the gains for savings and other accounts on your income tax, hence why you get a 1099-INT if you have enough. In addition, savings and certain other accounts can't be taxed like this, as they are, by definition, not capital assets, but rather cash and cash equivalents.