Nicklesilver
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Jante Yellen is proposing taxing unrealised capital gains in the US, could it catch on here?
Taxing unrealised capital gains
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Nicklesilver
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Examples please, never heard of it.
So Deemed Disposal was introduced in the Finance Act 2006. Every 8 years, you paid the tax on your investment as if you had cashed it in. For those invested through life companies, the tax is deducted automatically from your fund and paid over to the Revenue.22 Mar 2021
Brendan Burgess
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Looks as if she got the idea from us!
Nicklesilver
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Thanks, do you get a credit for an unrealised loss?
I guess not.
it is a bit like a wealth tax based on the current value of all assets which could force the need to sell assets to pay the tax.
I guess not.
it is a bit like a wealth tax based on the current value of all assets which could force the need to sell assets to pay the tax.
Bonds are the means by which government funds everything, it's how they came up with 40 billion euros to pay for covid. If they did that it would cause a sell off in the bond market, a rise in interest rates and be a disaster for governments like Ireland. Surely they would also need to introduce it for investment properties as well then?
Here is some info on the US proposal:
marginalrevolution.com
aswathdamodaran.blogspot.com
Further points on the tax on unrealized capital gains - Marginal REVOLUTION
Put simply, this proposal is biased towards people with inherited wealth, invested in non-traded assets and mature businesses, and against people invested in publicly traded equities in growth companies, many of which they have started and built up. If that is the message that the tax law...
marginalrevolution.com
The Billionaire Tax: The Worst Tax Idea Ever?
A blog about markets, finance and all things money related.
aswathdamodaran.blogspot.com
It could be that at least half of the planned revenue from the policy would have come from ten individuals only. Fortunately, it is looking as if .
See: https://marginalrevolution.com/marg...st-tax-bill-ever-tax-estimate-of-the-day.html
Allpartied
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It's a pretty obvious way to rebalance an ecomomy which is, seriously, tilted towards those who accumulate capital.
It should be extended and CGT should be the same as taxes on work. ( 20% on first 30k, then 40% on the rest). CGT should be applied to all assets, including the primary residence.
It should be extended and CGT should be the same as taxes on work. ( 20% on first 30k, then 40% on the rest). CGT should be applied to all assets, including the primary residence.
Nicklesilver
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My problem is that all the talk is for more taxes and more spending. Not about growing the economy and cutting waste, eg the childrens hospital. Ireland is not well run despite our politicians being the highest paid. The state is growing quicker than the wealth creation which pays for it.
I agree with that but this;
seems like a bit of a blunt instrument.
I do agree that CGT should be charged on all assets, including the primary residence.
Why should someone accumulate €30,000 a year tax free simply due to property price inflation when someone with no property who is trying to save a deposit has to earn €60,000 to end up with that same €30k?
Inherited wealth is creating a very two-tier society. Unless we're going to give a council house to everyone who doesn't inherit one we have to do something different. A good start would be to tax the gain as an estate tax when granny dies. Then their kids/grandkids can pick over what's left.
I agree with that but it runs far deeper than the government. The mistake we make is thinking that they can actually change things. They can't. The vested interests are too deep rooted. No government can dig them out.
And how do we propose to tax this notional gain of 30k!!
Thís sort of thinking that sees a house as just an asset is what's kinda wrong with our attitude to housing...its a home fundamentally. We all need to live somewhere..a wee 2 up/down in Manor Street in Dublin is suddenly worth 500k is not the fault of the person who bought it in the last recession for 250k.
Do we tax this 250k gain on individuals earning the industrial wage of 45k each!!
Yes we do, but it can roll over until it's sold.
Coupled with reasonable property taxes that will broaden the tax base, allow for a reduction in taxes on labour and, in normal market conditions, increase the affordability of housing by reducing prices.
Nicklesilver
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It appears that it’s not going ahead in the US. Moderate democrats are against it. All the billionaires will just leave.
we should never forget that capital is mobile. If Irish taxes keep increasing money and business and smart people will go to where they get the highest return. Basic economics. Basis of the EU.
we should never forget that capital is mobile. If Irish taxes keep increasing money and business and smart people will go to where they get the highest return. Basic economics. Basis of the EU.
High income taxes are a bigger disincentive to work. We can't attract talent because there's nowhere to live and income taxes are too high. As long as we conflate income and wealth we'll have a narrow unbalanced taxation system.