Colin on Nostr: Listen up โ b/c I'm only going to say this once. It is ...
Listen up โ b/c I'm only going to say this once.
It is ๐ง๐ถ๐ฏ๐ฅ๐ข๐ฎ๐ฆ๐ฏ๐ต๐ข๐ญ๐ญ๐บ impossible to tax unrealized capital gains.
Any politician entertaining this idea has no concept of value creation or of the disastrous effects of such a tax.
But let's do a thought experiment ๐
Say you purchase stock in company X and from the time of purchase, its stock increases 100%.
You now owe (say) 28% of these unrealized gains to the IRS/CRA/etc.
But where, you ask, would your liquid capital to pay for this tax come from?
Well โ in all likelihood, from selling company X's stock in proportion to the new tax.
& that would be fine and dandy if it were just you and just company X's stock, but it's not just ๐บ๐ฐ๐ถ, is it?
It's ๐ฆ๐ท๐ฆ๐ณ๐บ๐ฐ๐ฏ๐ฆ (likely in unison around tax season) and it's everything.
The net effects are dire.
Cascading collapses in the values of all assets would follow, which (of course) negates the impetus for the tax in the first place, but also creates something of a... what's the word I'm looking for [pause]
Ah - yes... economic ๐ฑ๐ฒ๐ฎ๐๐ต spiral.
All this without mentioning how utterly impossible such a regime would make it for startups, founders and private equity in general; it would be over.
In conclusion: the tax is impossible, but more concerning IMO is the shocking ignorance (communism?) it takes to suggest itโ๏ธ
It is ๐ง๐ถ๐ฏ๐ฅ๐ข๐ฎ๐ฆ๐ฏ๐ต๐ข๐ญ๐ญ๐บ impossible to tax unrealized capital gains.
Any politician entertaining this idea has no concept of value creation or of the disastrous effects of such a tax.
But let's do a thought experiment ๐
Say you purchase stock in company X and from the time of purchase, its stock increases 100%.
You now owe (say) 28% of these unrealized gains to the IRS/CRA/etc.
But where, you ask, would your liquid capital to pay for this tax come from?
Well โ in all likelihood, from selling company X's stock in proportion to the new tax.
& that would be fine and dandy if it were just you and just company X's stock, but it's not just ๐บ๐ฐ๐ถ, is it?
It's ๐ฆ๐ท๐ฆ๐ณ๐บ๐ฐ๐ฏ๐ฆ (likely in unison around tax season) and it's everything.
The net effects are dire.
Cascading collapses in the values of all assets would follow, which (of course) negates the impetus for the tax in the first place, but also creates something of a... what's the word I'm looking for [pause]
Ah - yes... economic ๐ฑ๐ฒ๐ฎ๐๐ต spiral.
All this without mentioning how utterly impossible such a regime would make it for startups, founders and private equity in general; it would be over.
In conclusion: the tax is impossible, but more concerning IMO is the shocking ignorance (communism?) it takes to suggest itโ๏ธ