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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
(Score: 0) by Anonymous Coward on Sunday April 07 2019, @08:11PM (2 children)
Doesn't that screw over frugal people who invest as much money as possible so they can retire early, though? You'd have to have progressive UCGT tax brackets.
(Score: 0) by Anonymous Coward on Monday April 08 2019, @07:53AM (1 child)
Depends on how they invest. Most people would probably use a 401(k), 403(b), employer-provided DBP, IRA, ILIT, Roth accounts, (and a few other limited instruments), or a combination of the above. They are already exempt from CGT or have all sorts of special rules already for when they can be taxed. The UCGT would only hit assets owned outside of them; and other than real estate and certain other property (which already has a yearly value tax, let alone a CGT) most people only own a small amount of assets that would be subject to a CGT, realized or otherwise.
(Score: 0) by Anonymous Coward on Monday April 08 2019, @06:11PM
"Most people would probably use a 401(k), 403(b), employer-provided DBP, IRA, ILIT, Roth accounts, (and a few other limited instruments), or a combination of the above."
most sycophantic slaves...