Posted on 06/26/2023 12:50:02 PM PDT by CFW
Pharaoh will double the brick requirment and take away the straw.
Deficit spending has insured multiple generations of slaves.
Government shouldn’t be allowed to tax income. Period. Taxing income you haven’t gotten yet is beyond ridiculous. But we’ve been beyond ridiculous for a long time.
The article describes the tax on foreign holdings as a tax on “unrealized gains,” but it sounds more like a tax on “reinvested dividends.”
If I own shares in a mutual fund and it pays me $1,000 in dividends this year, I have to report this as income even if my account is set up to automatically reinvest the dividends back into the mutual fund.
A fitting epitaph for this once great nation.
Can decide now whether I gove a rats 🐀 butt or do I have to wait?
Why would we let you do that?
There is nothing in it for us.
Touch that and cash is king. The whole public 401K system will go popcorn fart.
Well of course Thomas will say no. And the rest probably will okay it.
“The article describes the tax on foreign holdings as a tax on “unrealized gains,” but it sounds more like a tax on “reinvested dividends.””
Now THAT makes sense.
Those reinvested dividends are still current income, AC. They’re added into your basis for when you sell the shares. I’m sure you know that, though.
Unfortunately, SCOTUS already ventured into this realm with the Kelo v. City of New London, CT decision. A smart Constitutional lawyer will bring this case up to stop the practice of taxing unrealized gains, and maybe get SCOTUS to reverse the Kelo decision, too.
In Kelo, SCOTUS ruled that the 5th amendment eminent domain takings for "public use" included the ambiguous "public good." SCOTUS decided that it was a public "good" to increase the tax base of a community by taking private property away from less wealthy people and giving it to other private entities that can generate more taxes with that private property.
SCOTUS allowed the City of New London to declare perfectly good bedroom community homes to be declared "blighted" so they could condemn the property, claim eminent domain, and turn that property over to a developer who was going to build a business park for Pfizer. The new property would generate more property taxes for New London than the houses would, they reasoned.
In time, the developer was unable to secure financing and the project was abandoned. New London lost out on their existing property taxes from the houses, and also the unrealized future taxes from the business park that was never built.
Taxing the unrealized gains of investments may never actualize into gains when the person sells the assets. In fact, this tax might force the owner to sell the asset just to raise the revenue to pay for the tax.
As was the case with Kelo, it is speculative at best to count on an unrealized gain as realized for tax purposes, and SCOTUS should back away from this idea once and for all, and take that Kelo decision with it.
-PJ
This is hugely important. Property taxes are based on unrealized valuations. Comps. Illegal in my mind.
I have been successful in my county at the “ equalization hearings”. We need to watch closely and IF unrealized gains are ruled against, every single citizen should file lawsuits against their counties for taxing unrealized property values.
I doubt that but it will dampen investing. I want to know what happens when that unrealized gain you paid taxes on turns into an unrealized loss. I bet they will disallow a deduction for an unrealized loss and say you must sell it to claim.
I bet this passes....likely why the IRS wants 87,000 more agents with guns
The Founders went to war when the tax rate hit 7%.
Exactly. If your investment pays you a dividend, the IRS doesn’t care if you put the money in your pocket or reinvest it. It’s still taxed the same — as current income.
.
Yes the government would be happy if they could take every cent you make. No tax too much.
NohSpinZone wrote: “This is a trial balloon. If the leftists win, the real target will be all those unrealized gains in the trillions that make up our 401K and IRA accounts that they can’t get to until we turn 73 and are forced to make required minimum distributions.”
Don’t forget the unrealized gains in real estate appreciation. Just imagine having to get your home appraised every year for tax purposes.
And then they’ll implement a digital currency.
Galt is established as an option.
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