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HR_Poke

Taxing unrealized gains

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Just now, AztecSU said:

Just found out they actually do this in Denmark...you know the part of the world that came up with the central banking concept. There all Mutual Funds, exchange traded funds, and capital associations are taxed annually. Individual securities though, are still taxed only when gains are realized. So, it's possible unless some of you think America isn't up to the task?

Scenario. Exchange traded funds increased in value year 1, you pay tax on the gain, year 2, the security returns to the price you purchased it at, you receive a tax benefit equal to the loss. This works and is much simpler as it avoids individual securities. 

 

 

 

 

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3 minutes ago, AztecSU said:

Scenario. Exchange traded funds increased in value year 1, you pay tax on the gain, year 2, the security returns to the price you purchased it at, you receive a tax benefit equal to the loss. This works and is much simpler as it avoids individual securities. 

Does Denmark give them credit for losses as well?

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8 minutes ago, AztecSU said:

Scenario. Exchange traded funds increased in value year 1, you pay tax on the gain, year 2, the security returns to the price you purchased it at, you receive a tax benefit equal to the loss. This works and is much simpler as it avoids individual securities. 

As I previously stated I have no problem increasing taxes if it goes to paying down the deficit and debt. Let’s get our house in order before we start spending on a bunch of new programs that increases our deficit and debt. 

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1 minute ago, HR_Poke said:

Does Denmark give them credit for losses as well?

Yes. I am not familiar enough with the filing but it makes me wonder if you have to file every year or not. But yes, each year is isolated. So credit or tax is based on year start value v year end value. 

 

 

 

 

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3 minutes ago, AztecSU said:

Yes. I am not familiar enough with the filing but it makes me wonder if you have to file every year or not. But yes, each year is isolated. So credit or tax is based on year start value v year end value. 

Taxing mutual funds would have to be limited otherwise you are hitting everyone's 401k, and most of us don't have the liquid assets to cover that tax bill yearly.

Not a lawyer, but it would appear taxing wealth in this manner violates the 16th amendment and would require a constitutional amendment to allow it based on previous cases when congress tried to tax stock splits that had not been sold.  

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Just now, HR_Poke said:

Taxing mutual funds would have to be limited otherwise you are hitting everyone's 401k, and most of us don't have the liquid assets to cover that tax bill yearly.

Not a lawyer, but it would appear taxing wealth in this manner violates the 16th amendment and would require a constitutional amendment to allow it based on previous cases when congress tried to tax stock splits that had not been sold.  

You are absolutely right that from a legal standpoint there is no way to do this in the US currently. I guess I am just looking at it from a can we do it/should we do it perspective. And even if we did I am sure our way will be different than what they're doing in Scandinavia. 

 

 

 

 

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6 minutes ago, Maji said:

Key word there being arbitrary.

Sure, there's no hard and fast line where you go to failed nation once you hit a certain debt to gdp number.  But it's incredibly difficult to come back from that 100% mark and a lot of nations failed around that limit.

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12 minutes ago, AztecSU said:

You are absolutely right that from a legal standpoint there is no way to do this in the US currently. I guess I am just looking at it from a can we do it/should we do it perspective. And even if we did I am sure our way will be different than what they're doing in Scandinavia. 

I don't know the answer to this. Honestly I don't know how big an issue this really is?  How much revenue would this generate yearly from the ~1000 individuals they were targeting?

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57 minutes ago, HR_Poke said:

Sure, there's no hard and fast line where you go to failed nation once you hit a certain debt to gdp number.  But it's incredibly difficult to come back from that 100% mark and a lot of nations failed around that limit.

There is no impending disaster

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3 minutes ago, HR_Poke said:

I don't know the answer to this. Honestly I don't know how big an issue this really is?  How much revenue would this generate yearly from the ~1000 individuals they were targeting?

This is the most important question...is it worth it.

 

 

 

 

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1 minute ago, Maji said:

Lol. There is no impending disaster

The higher the debt-to-GDP ratio, the less likely the country will pay back its debt and the higher its risk of default, which could cause a financial panic in the domestic and international markets. A study by the World Bank found that if the debt-to-GDP ratio of a country exceeds 77% for an extended period, it slows economic growth.

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Heaven forbid Congress & the FED prevent a Great Recession scenario, where the recovery was long & arduous. We arguably never got back on track after the Great Recession.

I can only thank the lord that Powell is running the show instead of some posters here on the MWC Board. All this talk of "think of the children and grandchildren." I'm young enough to be a grandchild for some of you, and I assure you that a slow recovery would've been utterly disastrous for my generation.

 

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4 minutes ago, Maji said:

Heaven forbid Congress & the FED prevent a Great Recession scenario, where the recovery was long & arduous. We arguably never got back on track after the Great Recession.

I can only thank the lord that Powell is running the show instead of some posters here on the MWC Board

 

Feel the same way when you post.

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14 minutes ago, Maji said:

Lol. There is no impending disaster

Wait until interest rates need to be rapidly increased to stave off rising inflation in the next year or so. 

I know you have lived your whole life in the 1% interest rate era of cheap money but that era is coming to an end. 

Interest payments on the debt are going to go way up. 

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36 minutes ago, bornontheblue said:

Wait until interest rates need to be rapidly increased to stave off rising inflation in the next year or so. 

The market doesn't expect interest rates to rise super high. How high are you expecting them to go?

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13 minutes ago, Maji said:

Heaven forbid Congress & the FED prevent a Great Recession scenario, where the recovery was long & arduous. We arguably never got back on track after the Great Recession.

I can only thank the lord that Powell is running the show instead of some posters here on the MWC Board. All this talk of "think of the children and grandchildren." I'm young enough to be a grandchild for some of you, and I assure you that a slow recovery would've been utterly disastrous for my generation.

 

We did have a slow recovery after the great recession. It was a long U shaped recovery that bounced along the bottom. It was the slowest recovery in the post war period. 

 

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Just now, Maji said:

The market doesn't expect interest rates to rise very high. How high are you expecting them to go?

If inflation becomes more pervasive they could get up to 8 -9%. 

They got up to almost 20% in the early 80's the last time we got serious about fighting inflation. 

 

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