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2 cents of what

Posted on: January 14, 2020 at 21:54:24 CT
ScottsdaleTiger MU
Member For:
21.67 yrs
M.O.B. Votes:
The value of publicly traded assets, i.e. stocks and bonds, is relatively easy to calculate. After that it gets rather murky. I.e. closely held businesses whose stock isn't publicly traded. Wealth in the form of physical assets, i.e. buildings and land. Yes, values can be determined, but it's not an easy process.

Couple of examples: the common way to borrow Jeff Bezo's (sp?) Amazon stock is to multiply the number of shares he owns by the current market price. However, there's an argument that he owns so much stock that if it all comes on the market at one time, it will depress the market price and therefore its worth less than the current stock price times the number of owned shares.

Another example is physical assets, i.e. land and buildings. Determining the actual value is really a matter of opinion. Assume the assets have a $100 million value. The IRS could argue and probably make a reasonable case in many situations that they're worth $110 million. Conversely, the taxpayer can probably make a reasonable case they're worth $90 million.

Another aspect of the wealth tax is it will likely have a depressing affect on asset values. I.e. it's going to be more expensive to own assets and therefore, the rate of return on them may be depressed and a lower rate of return translates into less value.

World wide a number of countries, about twenty if memory serves, have implemented wealth taxes and they have generally generated less revenue than anticipated. Some nations have abandoned them as more trouble than they're worth.

Another factor is persons subject to the wealth tax will restructure their affairs in such a way to minimize the wealth taxes. I.e. it will lead to a repeat of the off shore tax game.
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Wealth tax....ain’t that america!(nm) - tigerNkc MU - 1/14 21:27:07
     And unconstitutional - Calca STL - 1/14 22:07:34
          Not really, else property taxes wouldn't exist. Nm - SparkyStalcup MU - 1/15 07:12:33
               There are no federal property taxes. 10th Amendment - ummmm MU - 1/15 07:31:34
                    Correct. The 9th and 10th Amendments are so ignored they - Bulldog Bob Brown STL - 1/15 07:38:10
          RE: And unconstitutional - scan MU - 1/14 22:09:41
     They should set the wealth tax at the average balance - tman MU - 1/14 21:48:03
          So basically if u haven’t saved by now u will be poor foreve - TigerFan92 MU - 1/14 21:58:27
               No. They will just take yours(nm) - tman MU - 1/14 22:07:38
     RE: Wealth tax: They gonna send out revenuers to take inven - BH O'bonga MU - 1/14 21:47:40
          They are more than welcome to give more to the - Sal MU - 1/14 21:46:22
               RE: They are more than welcome to give more to the - MOCO SON MU - 1/14 21:51:14
               Yep. And they clearly don’t - MIZ45 MU - 1/14 21:49:54
     save money and you are now considered wealthy. They will - TigerFan92 MU - 1/14 21:43:15
     Let me guess, they're debating it right now - Sal MU - 1/14 21:37:21
          Socialist States of America (nm) - Fourth and Long MU - 1/14 21:39:09
     It's 2 cents. Is that too much to pay your bills honey? - Floyd Turbo 99 - 1/14 21:28:48
          2 cents of what - ScottsdaleTiger MU - 1/14 21:54:24
     Disgusting (nm) - Fourth and Long MU - 1/14 21:28:15

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