Wealthy people worry about losing money to wealth taxes

“My assumption is our tax situation changes meaningfully in the next decade as AI and deficits come to roost. I'm preparing to live on a 2% SWR, so we can survive a 2% annual net worth tax.. [re: Anyone else positioning for an AI-driven white-collar job wipeout]”

“Hopefully we (in California) pass Prop 40 in the upcoming election! Proposition 40 offers the first opportunity for the people to start reining in the power of billionaires. It isn’t just critical for Californians. If the state that houses some of the country’s most powerful billionaires votes to tax their wealth, it will kickstart a movement to tax ultra-high-net-worth individuals in other states — and eventually at the federal level and in other countries. As Californians head to the polls, th”

“How exactly should we tax the billionaires? Three specific ways to target and reduce wealth gap in society, including taxing billionaire’s superPAC contributions. submitted by /u/jtan212 [link] [comments]”

“You act like this slippery slope couldn't happen, but when income taxes were first levied, less than 1% of the population paid taxes.”

“It seems unenforceable or un calculable. That’s one of the MANY issues and problems with a wealth tax.”

“What happens if they just refuse to pay it and move out of state? Retrospective laws should not be allowed.”

“All the things you described IS exactly what tax collections are supposed to do. A much simpler saner way is to plug tax loopholes for the rich and have progressive tax slabs within reason.”

“I don’t think you get it - wealth doesn’t follow a bell curve distribution anywhere in the real world. Attempts at making wealth more equal with soak the rich taxes attempt to make people more the same, which crushes motivation. The success of a billionaire is not everyone else’s failure. Let people compete in a fair and free market and see who wins.”

“Warren Buffet has more cash than I in reserve. You're assuming I do not likewise have large positions in the market, in addition to the cash, and ignoring that I might have reasons for some wealth in cash in reserve.”

“Why not just increase income and capital gains tax? The money eventually flows to a real person anyways”

“What I’ve learned from this sub is that a large number of tax consultants whose jobs depend on the government wish it didn’t exist. Par for the course for government workers in my experience.”

Great example for teaching people money isn’t real.

“Ken’s complaining about a tax even as his 250 million home is taxed at a 9 million valuation. This is why we can and should tax these people (Ken is taxed at a lower level than middle income earners and homeowners).”

“Well you’re saying tax the rich more by increase the social security phaseout. Totally agree I just don’t know what’s wrong with saying tax the rich more ( as a concept, not the sales pitch). And also tax the corporations more regardless of jobs taken (too messy/easy to game). Again, I agree 100% but that’s basically saying tax the rich more too :)”

“It's important to remember that stealing from rich people always has consequences. I would in fact move after hearing this. Thus removing all my tax dollars.”

“Idk why so many people in this sub think it’s their duty to tell other people what to do with their own money. It’s so off putting and rude to tell someone to do something with their money when they haven’t asked for the advice.”

A 1 time tax will never really be a 1 time tax. Needs to be 0 times.

“How is it projection when I disagree with you? You claimed you don't care if billionaires leave, nor do you care if tax revenues go down and poor people get less help. So then why do you want to tax them? I assume jealously and desire to punish which is quite common. Have you look into yourself to consider it?”

“>...the 'taxing progressively higher any property a person directly/indirectly owns after first N properties' are seriously very much needed...I don't see it in the article, but the progressive nature of the tax is important. It makes it harder for large landowners to pass along the tax, since they must compete with smaller landlords. The net effect should also stabilize land appreciation, which will no longer rise with rapidly increasing wealth disparity as it has in the past couple of decades.”

“Who cares if it is more than 1 time. The billionaire grifters need to start paying their share”

“Oh you sweet summer child, bless your heart. Keep trusting them politicians.”

“You joke, but realistically inflation will push everyone above whatever threshold they select.”

“TBF we voted that in, along with ICE, and corruption.... I personally didn't, but as a nation we certainly did.”

“But, if it isn't a one-time deal, it'll definitely continue to only apply to Billionaires. It's never like that, because somebody will come up and see the amazing amount of wealth the rest has combined. That's what people don't get. The gazillionaires may each have a lot of money, but combined it's not that much relative to the wealth of the rest. As a reference, a quick search shows the US has $180 Trillion in wealth. The ones you want to tax holds $2.3 Trillion in Calif”

I see there are a lot of billionaires in this thread.

“It'll just creep downwards until the average man is getting taxed on any asset they have? Once a government starts just taking money from private property....”

Yep. It always starts at the top until it hits everyone

“Not a chance it would be one time. Many of those billionaires would leave to avoid such an impact costing CA more than they would raise. It will make the people who pass it feel good as they continue to watch their state crumble around them.”

“The extra brackets won't really do much in this case because there aren't a bunch of folks bringing in that kind of money as normal income. The cap gains change is an interesting one I'm actually not sure if California has its own cap gains that you have to pay or not, and if they don't then they can't change the federal rate and would have to introduce a whole new tax to have a state level cap gains”

“Isn’t the whole concept of property taxes is that a house needs services (police, fire, road access, schools) and that they should pay for those services? It is also already redistributive, the more property (wealth) you have, the more you pay. Most goes to schools too, so it is redistributed to help the least privileged. If you own a home, you’re honestly pretty well off, far more than renters. Property owners paying more in taxes seems fair to me. We subsidize home ownership obscenely too - ta”

Haha my bad.

“You absolutely will care when CA tax revenues go down so social benefits are cut”

Right? It’s like this whole country has Stockholm Syndrome.

“... Then millionaires ... Then thouandaires .... Then dollaraires .. then poor people .. and STILL that train to nowhere will not get finished ...”

“"One time." You mean like that temporary federal income tax of no more than 3% from the early 20th century?”

“The problem with socialism is that you eventually run out of other people's money…”

“Yea let’s give the politicians more money to waste….🤡🤡”

This tax will go after the middle class eventually.

“My point is not the 1200 centimillionaires are going to be hurt. It is about the 7.5 million millionaires in the state will be hurt and while they may not be next, it won't be long if 40 goes through.”

“Anything can be worth a ridiculous amount of money on paper, but what someone is willing to actually pay for it is something else. That why we have only taxed people on what their gain is when they sell. I do think that there's a case to be made regarding gain recognition when you borrow against appreciated stock, though.”

“The social contract is what gives money value (yes, including gold and Bitcoin)”

Rich people have money.

“We literally cannot generate enough revenue to cover the basics expenditures anymore. I'm sorry but the wealthy have to pay up. The interest payments on our debt alone are more than the entire military. Honestly if I were a wealthy person, I'd much rather pay some taxes and have my life not change a single iota than have to dodge a guillotine and deal with mass poverty in my backyard.”

“At some point fiscal conservatives will have to face the music on this. If inequality continues to skyrocket there just won't be any tax base left in the middle class to draw revenue from.”

“How do they do that? What's the mechanism? (Hint: it's a social contract)”

“U know why… But they’ll tell you it’s to encourage investment in new business.”

“The argument is to reward investment. It does, but it's more important to reward labor.”

“Because the tax code is written by wealthy people who don't work for someone else.”

“Again: Tail wagging dog. OP needs to ask themselves if they want 6.5M or zero. That's the split they're setting themselves up for by trying to over-optimize and wait a year to get paid. It's a scammer's dream.”

“Yeah, from my research, these two and italy under the lump sum regime are the only options that would make a considerable difference.”

“And how do you plan to do that realistically. Most of the wealth of the ultra rich are tied up in stocks or other assets, i.e. non liquid. How are they supposed to pay the huge sum of money that you are demanding. It pains me when people imagine the rich sitting on wads of cash like scrooge mcduck, when in reality there's only so much wealth an individual can actually consume. The surplus capital generally gets invested instead. It goes back into businesses, new ventures, research, expansion”

“This. Ive had so many debates with friends on people on this. 90% of the people wont “save or invest” the difference. They will just add it to their budget. Some might invest a portion of it but the majority will spend it. In the end; they were better to stick with the mortgage…”

exactly..load this mfer up

“You also stated he has two other flows of income. Also, most rich people are broke AF. They live the life style barely above water and in debt.”

“Taxes are less of a drag in Fatfire retirement, IMO. Why? Because income comes in the form of 3 buckets. Stocks (public or private), interest, and real estate (for those that enjoy pain). Dividends are taxed at a favorable rate, and if you sell stuff you pay capital gains. Real estate income is deferred due to depreciation. Interest is taxed at ordinary rates, but IMO, the average Fatfire poster isn’t 100% in bonds. Obviously these can change at any time based on political winds.”

“Yeah it depends but given Fatfire and OP’s tone I assume they don’t want to run out of money. A very long retirement at 4% can fail, go broke, 25% of the time. Thats if they don’t want to compromise spend in years of high inflation or bad returns.”

“The word “later” is doing a lot of heavy lifting here. Yes, the market will recover someday, but recovering in six months and recovering in six years make a big difference in most people’s lives.”

“If you look at what Puerto Rico attempted back in 2015/16 it looked good. Increased exemption to 40k indiv/80k couple on income tax but levied the VAT. It was blocked literally 48 hours before but looks to be making a come back. The similar income tax exemption / VAT implementation could help sell it in America. Coupled with e-invoicing and the tax gap/deficit will certainly reduce.”

“You sound like an angry and possibly irrational person. Illinois has a flat 4.95% income tax. You are paying $130,000 in income taxes on $2.6 million in short-term gains from trading. Frankly, it's a bargain. If you are savvy enough to make money in option and futures, you should have realized this years ago. Maybe you should consider Texas or Florida so you can hang out with other angry and irrational people and pay no state income taxes.”