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View Diary: Robert Reich Gets It Right (171 comments)

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  •  Draft the wealth tax bill (3+ / 0-)

    To have a fall back proviso.

    1) At the end of the year, all assets over $10,000,000, indexed for inflation, are taxed at 2%.

    2) If 1) is ruled unconstitutional, then at the end of the year, all publicly traded holdings are marked to market, and the annual gain in those holdings is taxed as capital income.

    •  Interesting idea, and one that's come up (2+ / 0-)

      before, although, like the wealth tax, it'd be a mess to deal w/ assets that don't have readily available market values.  Is the woman that owns a small business going to have to pay for an appraisal every year?  That sorta sucks.

      It won't raise nearly as much as a wealth tax, since we'd only tax the MTM gains every year, and presumably permit some sort of NOL for MTM losses so that they can be recaptured or something.

      So, not a terrible idea, but tough to see how it'd work in practice and questionable how much revenue it would raise.

    •  MP - I don't think you could find 20 members (1+ / 0-)
      Recommended by:

      of Congress who think we should tax unrealized capital gains unless in years when stocks went south you could deduct your unrealized capital losses against earned income.  While it can certainly happen from time to time Congress tries not to tax phantom income where you have an income tax liability, but no proceeds in cash to pay it.

      The overwhelming consensus of constitutional experts is that a wealth tax would require a constitutional amendment, just like the income tax did.

      "let's talk about that"

      by VClib on Tue Nov 13, 2012 at 05:52:33 PM PST

      [ Parent ]

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