It is a method through which a lot of billionaires do not pay taxes on most of their assets. Would you support a reform of the tax code and if so, how should the reform in your opinion look like?
There was a proposal by Biden and Harris (source linked above) that would have attempted to make a reform. But I have not heard anything about that until I decided to read up on this matter. Was this a big topic in the US during Bidens term?
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It is a method through which a lot of billionaires do not pay taxes on most of their assets. Would you support a reform of the tax code and if so, how should the reform in your opinion look like?
https://www.cbpp.org/research/federal-tax/arguments-against-taxing-unrealized-capital-gains-of-very-wealthy-fall-flat
There was a proposal by Biden and Harris (source linked above) that would have attempted to make a reform. But I have not heard anything about that until I decided to read up on this matter. Was this a big topic in the US during Bidens term?
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Not across the board no, but as a wealth tax yes.
It’s kind of a clusterf**k to tax unrealized and unutilized gains but I think newly originated loans against unrealized gains need to be taxed as capital gains once they exceed a certain point.
This shouldn’t affect homes unless you’re doing a cash out refi after it has appreciated, but we can make the threshold high. E.g. tax is only taken if the unrealized gains are more than 2 million. That would cover all but the top 1% of homes.
Just get rid of the stepped up basis. Does basically the same thing