I work as an accountant for a bank, and we do the books for an investment firm. As you pointed out (and I know your background as a CFA gives you extensive knowledge on this) taxing URGL is, in my opinion, the single-worst economic policy that could ever exist. It is worse than a 70% flat income tax, a 90% flat income tax. As you illustrated, the uncertainty intrinsic in share prices would cause devastation to the economy at large that would result massive contraction to the GDP as well as huge job losses. This would destroy pension funds, forcing investment firms to charge exorbitant management fee rates to offset the tax. People who think this would only affect mega-corporations or the super rich have no understanding of how the market economy functions.
The “justification” for this, that being “equity,” (and not the good kind), is disgustingly immoral. Additionally, the slippery slope here is steeper than a cliff, with the government just itching to chip away at that $100m threshold. It will go down to $95m, $80m, $50m, and so forth. And how will they even define wealth? They say assets - liabilities, but they make no mention of liquidity. Rest assured, the powers that be will absolutely count the most illiquid of assets in their calculation, and use the absolute highest valuation when it comes to property values.
I am reminded of the tenth Commandment, where the Lord tells His people to not covet their neighbor’s possessions. This is not just economically idiotic, it is immoral. As always, you wrote a great article, Helen, but what terrible news.
Hi Bill, You said it better than I did. I tried to keep it in layman's terms so as not to turn off people. But you are right that every 401k, IRA, 529 plan, etc. will be affected should Biden's capital gains tax go into effect. Most Americans so far haven't realized how seriously wrong Biden's tax scheme is.
I think you explained it great, Helen. It was very clear while also giving important details so that readers can understand how truly terrible such a policy will be if it becomes law. Envy is such a toxic mindset to have, and it consumes those who support this policy proposal.
I work as an accountant for a bank, and we do the books for an investment firm. As you pointed out (and I know your background as a CFA gives you extensive knowledge on this) taxing URGL is, in my opinion, the single-worst economic policy that could ever exist. It is worse than a 70% flat income tax, a 90% flat income tax. As you illustrated, the uncertainty intrinsic in share prices would cause devastation to the economy at large that would result massive contraction to the GDP as well as huge job losses. This would destroy pension funds, forcing investment firms to charge exorbitant management fee rates to offset the tax. People who think this would only affect mega-corporations or the super rich have no understanding of how the market economy functions.
The “justification” for this, that being “equity,” (and not the good kind), is disgustingly immoral. Additionally, the slippery slope here is steeper than a cliff, with the government just itching to chip away at that $100m threshold. It will go down to $95m, $80m, $50m, and so forth. And how will they even define wealth? They say assets - liabilities, but they make no mention of liquidity. Rest assured, the powers that be will absolutely count the most illiquid of assets in their calculation, and use the absolute highest valuation when it comes to property values.
I am reminded of the tenth Commandment, where the Lord tells His people to not covet their neighbor’s possessions. This is not just economically idiotic, it is immoral. As always, you wrote a great article, Helen, but what terrible news.
Hi Bill, You said it better than I did. I tried to keep it in layman's terms so as not to turn off people. But you are right that every 401k, IRA, 529 plan, etc. will be affected should Biden's capital gains tax go into effect. Most Americans so far haven't realized how seriously wrong Biden's tax scheme is.
I think you explained it great, Helen. It was very clear while also giving important details so that readers can understand how truly terrible such a policy will be if it becomes law. Envy is such a toxic mindset to have, and it consumes those who support this policy proposal.