re: Wall Street Journal lamenting taxes aren't higher on billionaires

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The country has a spending problem, not a revenue problem.

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And a corruption problem.

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WTF are you laughing at? That’s exactly what’s happening.

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No it isn’t.

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I’m not typing it all up again. Read the thread if you’re interested. This is just to say the proposal is not about taxing all unrecognized gains, just those that are being borrowed against to avoid taxes.

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It’s hilarious you think taking a loan means no taxes are ever paid by billionaires. You aren’t the brightest tax and estate planner I’ve run into.

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It’s hilarious you think taking a loan means no taxes are ever paid by billionaires.

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I never implied that. I am saying that SOME billionaires are able to defer paying capital gains or income taxes for many years by taking loans against their securities. This is a well known phenomena. It’s not something I’m bringing to the table. It’s something I’ve read about several times, and taxing those loans as capital gains is being considered by think tanks currently. But you keep giggling, you!

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you're really going to be outraged but for the first 11 years in that business i could defer commissions roll them over year over year and access them as equity in my margin account and the only tax i would pay is on the short and long term profits in my investment account

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I’m not outraged a bit. Glad you took advantage of the avoidance schemes available to your industry. I did in mine. Mainly it was R&D tax credits. What a scam! We had huge deductions for these and nothing we did should have been called R&D. But a third party consultant did the audit and suggested the tax credits. We just signed off.

There is another discussion to be had about these perks to industries and labor. They should all be gotten rid of because they distort the market. And while I would be the worse off for the elimination of those that helped me, I’d be better off on balance. And that’s the way government intervention usually works. But that is not this discussion.

From AI

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Deemed realization tax on loans is a proposed policy targeting the "buy-borrow-die" strategy, where investors borrow against appreciated assets to access cash tax-free without selling, thereby avoiding capital gains taxes.

This approach treats loan proceeds as a taxable "realization event" up to the amount of unrealized gains, effectively taxing loans as income to close tax loopholes.

Key Aspects of Taxing Loans as Income/Deemed Realization: The "Buy-Borrow-Die" Loophole: Currently, the wealthy can borrow against appreciated assets, accessing cash without triggering taxable income, as loans are not considered income by the IRS.

The Proposal: Proposed by experts, this policy treats borrowing as a "deemed realization" event, forcing the recognition of capital gains when loans are taken against appreciated assets. Preventing Double Taxation: To avoid taxing the same gain twice, the cost basis of the assets used as collateral would be reset to fair market value after the tax is paid. Mechanism:

Tax is generally triggered on loans if they exceed the cost basis of the assets, often calculated on a first-in-first-out basis. Current Tax Status: Generally, loan proceeds are not taxable income because they must be repaid. However, if a loan is forgiven or cancelled, the forgiven amount is treated as taxable income.

This proposed tax reform aims to ensure that using, borrowing against, and dying with appreciated assets (without ever selling them) does not allow for a permanent escape from capital gains tax.

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Read what I just. posted from AI.

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Again. You’re posting with hubris from a place of complete ignorance. They may avoid capital gains because of the step-up in basis. That’s a 20 percent savings. And you only get the step-up on assets includible in your estate. Your AI generated post doesn’t address estate tax or GSTT. Those are a 40 percent tax rate. Again….you could not be more wrong about billionaires avoiding taxes for generations.

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AI must have hubris, too.

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you fricking moron. You don’t know what you don’t know.

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Your AI generated post doesn’t address estate tax or GSTT. Those are a 40 percent tax rate. Again….you could not be more wrong about billionaires avoiding taxes for generations.

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Hell, it doesn’t address taxes already paid on the issuance of those assets (company stock which is generally what these claims are referring to).

He already admitted on the last page he didn’t understand anything about it, but that didn’t stop him