Oddbean

Unrealized cap gain tax proposal is a massive disaster in the making. Sure, they’ll start with a high threshold (for now) but it’s going to come down to where this thing impacts the average person sooner or later. And we all know that once it’s in, it’s never getting out.

I wonder if they will be paying us back for unrealized losses... nostr:nevent1qqs9p543qmj7zxjsryfvcx0hnkal4073kf040tkpzwwx5s3ehfk786gpremhxue69uhkummnw3ez6ur4vgh8wetvd3hhyer9wghxuet59upzqx78pgq53vlnzmdr8l3u38eru0n3438lnxqz0mr39wg9e5j0dfq3qvzqqqqqqy6z7nga

Models have already shown that the proceeds from taxing the rich will fund the G for like 3 months or so. So once they blow through the upper bounds on that and other taxes, you know damn well they're going to keep lowering it.

Unrealized cap gains is far worse than just that when you factor in catastrophic inflation. The inflation raising the price of everything towards whatever threshold they choose, will be like pushing a herd of buffalo off a cliff. Like being in Weimar, pushing your wheelbarrow full of worthless cash to buy a chicken and some bureaucrat says your wheelbarrow is now worth 500 million dollars and since you don't have enough cash to pay the unrealized capital gains your wheelbarrow must be seized.

Unrealised capital gains tax is coming. Just yesterday this passed the lower house of Parliament in Australia. Tax on unrealised gains in retirement accounts if the banalce is over $3 million AUD. There was an amendment to have this index to inflation but that was voted against.

And I can't get a thread of interest from anyone I know because as soon as they hear "over $3 million" they switch off thinking it will never be relevant to them. No one can grasp compounding inflation devaluing their money and raising cost of living. $3 million ain't what it used to be and for your children and grandchildren it might not be much at all.