Billionaires are hoarding trillions in untaxed wealth. They want the Supreme Court to keep it that way
Billionaires are hoarding trillions in untaxed wealth. They want the Supreme Court to keep it that way
America’s wealthiest held $8.5 trillion in untaxed capital gains during 2022, and efforts to tax them will soon face Supreme Court scrutiny.
A new report from Americans for Tax Fairness found that America’s richest families accumulated $8.5 trillion in untaxed capital gains in 2022
America’s wealthiest families held an astounding $8.5 trillion in untaxed profits in 2022. According to a report from the nonprofit Americans for Tax Fairness, which analyzed Federal Reserve data, “one in every six dollars (18 percent of the nation’s unrealized gains is held by these roughly 64,000 ultra-wealthy households, who make up less than 0.05 percent of the population.” The report comes as the Supreme Court gears up to decide a case that could preemptively block any efforts to tax the wealth of billionaires.
The data looks at “quiet” income generated by “centi-millionaires,” Americans holding at least $100 million in wealth, and billionaires through unrealized capital gains. Those gains accumulate, untaxed, as assets and investments like stocks, real estate, bonds, and other investments increase in value. If those assets are not sold — or “realized” — they are not taxed, yet America’s wealthiest families can leverage that on-paper value increase to secure favorable loans with low-interest rates in lieu of using taxable income to finance their lifestyle.
“Of the $139 trillion in America’s national wealth, almost three-quarters (73 percent) is held by the richest 10 percent of households, over one-third (35 percent) by the richest 1 percent, and an astounding 11 percent — $15.2 trillion — is held by the handful of fortunate households that make up the billionaire and centi-millionaire class,” the report says. “The wealthiest 1 percent of households hold 44 percent of national unrealized gains ($21.2 trillion), with billionaires and centi-millionaires alone controlling 18 percent ($8.5 trillion).”
When has the US turned into a regime led by the supreme court? All my life, whenever something was up, you heard what the president did or tried to do or whatever. Nowadays, all headlines about the US are about something the Supreme Court with it's undemocratically elected judges gets to decide over all lawmaker's heads.
TBF we are talking about unrealized gains. Their investments are worth more on paper, but until they sell them, the actual profit or loss will fluctuate. It would be an accounting nightmare to figure tax on unsold investments every year. I do, however, think capital gains should be taxed at the same rate as wage income.
$8.5 trillion in untaxed profits in 2022.
through unrealized capital gains.
Just to be clear, we're talking about wealth taxes, not income taxes. Yes, the wealthy have all kinds of avoiding paying fair income taxes. But, this is a different issue, this is a wealth tax.
It's important to realize, that most of the US already has a form of wealth tax: property taxes. The thing is, property taxes are a regressive form of wealth tax. Sure, the poorest people pay no property-wealth tax, because they're not wealthy enough to own taxable property. This time they do catch a slight break. Anybody who is middle-class and lucky enough to own a home pay the highest percentage of their total wealth as property-wealth taxes, because virtually all their wealth is tied up in that property. The wealthy pay almost no property-wealth taxes relative to their total wealth because only a tiny amount of their wealth is tied up in property.
If you graph it out, at the bottom the effective wealth tax is zero, then it jumps to a much higher number, then it declines more and more as you get richer and richer.
I say screw property taxes and replace them with a proper progressive wealth tax. Along with that, an inheritance tax with teeth and proper enforcement. The grandkids of billionaires should be starting on an equal footing with everyone else.
headline should read
they want to "PAY" the Supreme Court to keep it that way
We need to tax them on a different basis once they achieve far more than is reasonable for themselves and their family.
Instead of taxing them for the value of liquidity moved into or out of their care; we should tax them based on how much their value grows each year as well as assessing any normal "wage tax" as needed.
So if you grow in net worth value by 200%, so too do your taxes grow by a certain percentage. This tax is then paid directly each year. Your losses in worth do not count, and do not decrease your taxes until several years later. This should prevent anyone from tax dodging this, as even if you only held the money for long enough to activate this tax, you still held it.
This tax also applies to companies holding, far in excess, more money than they reasonably need to operate normally. No business shenanigans should save one from being taxed for accumulating more wealth than reasonable.
While most people in the world need not fear tripping this tax, anyone who is within the top 1% should be wary of it.
Nobody needs this kind of wealth. You have to be a real douchbag to buy this kind of boat. Many ways to use wealth without showing off in this un tasteful way. Unfortunately most of society today loves to see rich people on tickfuck and instagram. It will only get worst.
Read a book have a beer with a friend. ok bye.
Billionaires will never allow things to be fair or nicely do the right thing. People know what has to happen, it won't be via a court ruling. Plus they have class solidary and own judges/people in power.
No fucking shit
It's a feature, not a bug, you silly goose. Now get back to work making excess profits.
I find it super weird that there are people out there that still defend this practice while they make no money and live in a ‘trickle down’ delusion.
I’ve had numerous conversations with two of my brothers who have no money but this ridiculous ideal they are in the same box as musk and treat him like he’s vulnerable as if he represents ‘the working man’.
And once enough "friends" have stepped up to show their "friendship" to the iSCotUS, they'll rule as the "friends" desire.
I'm gonna call this now. The Supreme Court will uphold keeping trump off the ballot. But won't allow a wealth tax, because this Supreme Court will attempt to do a "this for that" deal with the American people.
Resetting the cost basis on death is a huge issue.
sounds like clarence is gonna get some late christmas presents
These are the people who give members of the court thousand dollar/day vacations and expect you to believe that it's just coincidence and good jurisprudence that the court rules in their favor every time.
I think there should also be some tax changes on capital gains such as real estate, it's silly to own a home for 2 years and sell it for a PROFIT of $499,999.99 and pay zero taxes in the USA, in addition to having reaped the benefit of homebuyer's tax credits. I'm sure the mega-mansion owners have found even more squirrely ways around it than that.
#fuckingcapitalists
We have no compassion and we ask no compassion from you. When our turn comes, we shall not make excuses for the terror. (Karl Marx)
Uh. How can billionaires hold trillions? That would make them trillionaires, idoit.
/s
Eat the rich