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Originally Posted by JSH
Taxing unrealized capital gains is no different than property tax. Both are based on the value at a specific time.
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Exactly, which reinforces my point about how corrupt taxing a thing that has not realized the change in value is a horrible idea that only scoundrels or dullards would come up with.
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Solves the issue of the extremely wealthy that take loans against their stock portfolio to fund their day to day living in order to never actually realize gains and pay taxes.
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I've been leaning toward sales tax to replace all other taxes, so this is another reason I'll add to support my leaning.
That said, taking out a loan incurs fees into perpetuity, whereas selling stock and paying tax on it is a one time expenditure. Not sure how that is a smarter strategy unless one expects the lender to eventually own all assets at the end of your life. At any rate, lenders must pay taxes on collected interest. When value is eventually realized, everything gets settled, including taxes.