#TaxTheRich #FairShare #IncomeInequality #WealthDistribution #TaxReform #RichVsPoor #EconomicJustice
Are you tired of hearing about the top 1% of society who have more wealth than the rest of us combined? Do you wonder how individuals like Zuckerberg or Bezos manage to avoid paying their fair share in taxes? It can be frustrating to see such a glaring wealth gap in our society, but there are practical solutions that can help address this issue.
Understanding the Problem:
The majority of the wealth held by the ultra-rich isn’t in liquid assets or annual income. Instead, it’s often tied up in unrealized capital gains that they use as collateral for loans. This loophole allows them to avoid paying taxes on their vast fortunes, leaving the burden of funding essential services on the middle and working class.
Solutions to Consider:
Here are a few practical ways to ensure that the wealthiest individuals contribute their fair share to society:
Implementing an Unrealized Capital Gains Tax:
One of the most effective ways to tax the rich is to introduce a tax on unrealized capital gains. By taxing the increase in value of investments that haven’t been sold, we can ensure that the ultra-rich pay their fair share. This would not only generate significant revenue but also help level the playing field for all taxpayers.
Revamping the Tax Code:
Another approach is to reform the tax code to close loopholes that allow the wealthy to exploit deductions and exemptions. By simplifying the tax system and ensuring that everyone pays their fair share, we can create a more equitable and just society.
Increasing Progressive Taxation:
Implementing a more progressive tax structure with higher rates for the wealthy can also help address income inequality. By raising taxes on the highest income brackets, we can generate additional revenue to fund essential services and social programs.
Conclusion:
It’s time to hold the ultra-rich accountable and ensure that they pay their fair share in taxes. By implementing practical solutions like an unrealized capital gains tax, revamping the tax code, and increasing progressive taxation, we can create a more just and equitable society for all. Let’s work together to address income inequality and build a brighter future for everyone. #EconomicFairness 💸🤝
>The top 1% of society that has more wealth than the rest of us combined? My understanding, and correct me if I’m wrong, is that the vast majority of the wealth of people like Zuckerberg or Bezos isn’t in income per year or liquid assets. It’s unrealized capital gains that they take out loans against, using that as collateral.
Not saying they aren’t, but this is made out to be way more common than it really is. Bezos for example sells shares all the time.
https://www.reuters.com/markets/deals/jeff-bezos-expected-sell-more-amazon-shares-worth-1-billion-cnbc-2023-11-21/
https://www.bbc.com/news/business-68355811
https://www.cnbc.com/2020/11/04/bezos-sells-more-than-3-billion-worth-of-amazon-shares-.html
To answer your question, there’s certainly more than one way, but progressive consumption taxes are a start.
https://www.taxpolicycenter.org/briefing-book/what-x-tax
https://taxfoundation.org/blog/taxing-consumption-progressively-tax-the-wealthy/
https://www.project-syndicate.org/commentary/benefits-of-progressive-income-tax-by-kenneth-rogoff-2019-09
>So if we have an unrealized capital gains tax, wouldn’t that mean for example our 401Ks could also be subject to it? Would that possibly affect something like a mortgage? What happens if their portfolio value craters next year due to a recession or something?
Well, if the goal is to tax the very rich specifically, this really isn’t a fundamental hurdle, just set exceptions to a level high enough that 99% of people aren’t affected. Even a limit of say $100 million is not a lot for someone like Bezos but plenty for any “normal” person to never, ever have to worry about.
You would most likely also let people carry over losses as future tax deductions so you don’t penalize “gains” that are just recoveries from losses.