The Harris campaign has indicated that they favor a 25% tax on unrealized capitol gains. This policy is utter madness.
Let's say that you bought $50,000 of Bitcoin on January 1. Then that Bitcoin is worth $70,000 on 12/31, which is a theoretical increase of $20,000. In Harris world, you should be taxed on that $20,000 at 25%, even though you don't actually have the $20,000. It's not a realized gain until you sell. So now you owe $5,000 in taxes for a gain which you haven't actually gotten. But on 1/2 of the next year your Bitcoin drops in value to $25,000. Which is now a "loss" of $25,000 of the original investment, and $45,000 over the highest value. What happens then? Do you pay $5,000 one year on the unrealized gain, and then get a refund on the unrealized loss the next?
This is absolutely one of the stupidest proposals ever floated and will absolutely wreck the economy.
2 comments:
It's basically taxing on nothing, or a tax which forces you to sell, hoping the sale can be made while the value remains at the amount for which one is taxed...that is before it drops...or...uh...WTF! There is no wealth while it only exists on paper. Thus, these marxists asshats are merely pretending one has what they don't so they can suck more cash out of them.
Some regard taxation of any kind as theft. This is certainly theft.
I'd argue that it's worse than that. It's literally going to destroy the housing market, and deny millions of people access to their largest source of wealth. You will literally see people having to sell their homes to pay taxes on the appreciation, while hoping they have enough left to buy something smaller, until they have to sell that.
There's an argument that taxing income is not a smart way to tax, but at least income is taxed as you receive it. This is like taxing someone on a raise they are going to get next year.
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