Supreme Court appears wary of repercussions of major case that could upend tax code
The case before the justices Tuesday could have sweeping implications for the U.S. tax system and derail proposals from some Democrats to create a wealth tax.
www.cbsnews.com
Case is being heard today in the Supreme Court.
I think this is a bad idea because, though they say it’s just to tax the rich, inevitably it will make its way to the common person as well. Doing so will remove a lot of the benefit of pre tax deductions.
In regards to taxing the rich, I still feel it’s not a good idea because it would be akin to taxing something that’s not benefiting anyone at the moment. Plus, you’ll end up getting double taxed on it. Once as an unrealized gain, and again when you cash it out.
Also, what about items that can fluctuate in value. If you have an item worth a lot of money today and they tax you on that value, if it decreases in value, do they give you a rebate?
Also, what about things like collectors items that you may never intend to sell? Such as rare comics or baseball cards and such. Is it right that one would be taxed on the value of those things if they never intend on selling them? Same goes with an investment, such as a house, or property, again, you may never want to sell these items, but you’ll be taxed on some estimated value that it could bring you if you were to sell it. It’s just extra money you’ll be paying for no reason.
What about the person who may inherit something, such as land, perhaps that land is very valuable…but maybe they dont have the money to pay the gains taxes they are wanting to assess in it, does that mean they will be forced to sell it?
Also, my question is..why? Why do they feel the need to tax unrealized gains? Is it because they just feel they are entitled to it? Is it because they just need more money?
It further emphasizes the need to cut spending rather than to keep finding ways to take more money from the people.
At the end of the day, this will solve nothing as if they manage to make this happen, all they are going to do is say “hey, we got more money, so that means we can just spend more”, which puts us right back at square one.
Cutting spending is the only answer, taxing unrealized gains (money you don’t have) is a bad idea.