While at this writing the Biden tax proposal hasn’t been voted on but has been described to include very scary items.
First off this is supposed to only “tax” the uber wealthy. But the tax code itself was to do the same thing in the beginning. Tax a very small percentage of the population. Then within what three years over half the population was filing forms and paying taxes. Government is a black hole for money, there is never enough while someone else has some.
The WSJ has reported this snippet on the proposal as March 26th 2022:
“The proposal would affect fewer than 20,000 households, and it would apply only to those who don’t pay at least 20% in tax on a combination of income as typically defined and their unrealized gains on unsold assets such as stocks and closely held businesses. The plan would generate roughly $360 billion in revenue over 10 years, according to a White House fact sheet released in advance of Monday’s full budget proposal. That is about twice as much money as raising the top individual income-tax rate to 39.6% from 37%, and it would affect a much smaller group of people.”
The part that frightens me is the tax on the “unrealized gains on unsold assets such as stocks and closely held businesses”.
Taxing unrealized gains! I am appalled, there is no gain, it is all an illusion. What of mutual fund companies? Would their unrealized gains be taxed? If so my unrealized gain are being taxed, I have ownership in mutual funds as do most of my clients. Remember mutual fund companies are usually privately held.
How to they plan to address losses, I have had significant losses based on Biden’s moves in 2022, eroding all of my 2021 gains…
I believe that taxing recognized gain is inevitable, but I think unrealized should not be.