I don't normally give my opinion on things and instead focus on poorly written articles but this one is too saucy to not reach on on. I do not know the extent of the tax proposals on the federal level that are and neither do the people who are discussing them because these proposals are normally something as long as reading the entirety of *Lord of the Rings" back to back three times in a row. Nobody reads them. It would be unreasonable to expect anyone to ever read them.
Lately, however, there are certain leaders that are attempting to impose massive taxes on the wealthy and while this might appeal to people out there that feel as though they are unsuccessful because of the fact that other people ARE successful, there are those of us that believe that in places like USA, your own failures are likely that: Your own.
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Elon Musk is a truly unique individual. 20 years ago nobody had even heard of the guy and these days he is innovating far less expensive methods of space travel that simply makes NASA look like what it is: A bloated, overspending, typical government organization where efficiency isn't an issue. He also makes cars that are in such high demand that you have to wait months or even a year just to get one.
Part of the new tax proposal that is being spear-headed primarily by Democrats would tax capitol gains on assets such as stocks even before said stocks are turned into tangible assets such as cash. While I would like to believe that there are humanitarian ideas behind this sort of an idea, it is absolutely crazy to do something like this.
I would imagine that a great many people on this platform are involved in crypto to some capacity and while it hasn't been discussed yet, you can be guaranteed that if this legislation passes (i'm hopeful it wont) you can be guaranteed that that will be the next target. Let's look at something like BTC for example. Let's imagine that you bought 1 BTC back in early 2017 for around $10,000 and you have held onto it until this day. You never moved it, you never cashed it out, and you are just sitting on it. According to this tax plan you have "made" $50,000 and therefore the government wants their piece of it. I'm quite sure it it much more complicated than this but the reasoning behind the new taxation is that billionaires hide their wealth in stocks rather than big paydays for themselves - which is smart because the idea for everyone is likely to pay as little in taxes as you possibly can.
The proposed legislation would mean that Elon Musk would have to pay $50 BILLION in taxes in the first 5 years of this plan, if it is passed. The legislators assure the "common man" that this will only apply to the ultra-rich and that the money that is gathered will be used for social programs that will benefit the middle and lower classes.
There is just one problem with what they are saying. If the United States were to seriously impose something like this these billionaires have the resources to simply leave the United States. When they do so, they would take away millions of jobs with them that this suffering middle-class probably are the recipients of.
No entrepreneur like Musk is going to just take this one sitting down and they would save money by completely uprooting their company and moving it somewhere else where those countries would definitely welcome them with open arms and probably plenty of incentives to do so.
As arrogant as this sounds, the United States is the epicenter of innovation and invention in many fields for the entire world. Whether or not people want to admit it, this innovation is driven by the ability to make money. I'm sure there are some altruistic people out there that want to do what is best for humanity and aren't at all in it for themselves but to quote Joe Biden... "come on man!" a vast majority of all innovation is driven by the desire to make money.
I really can't understand why any legislator would even contemplate something as preposterous as taxing people on money they haven't even made yet. Elon and many others like him would simply walk away and I think the people that are behind this legislation are delusional if they believe that any other outcome is actually possible.
I feel as though Musk was kind of paraphrasing Margaret Thatcher when he said this in response to the proposed legislation.
"Eventually, they run out of other people's money and then they come for you,"
The reported market value of my HIVE account jumps and drops by huge factors. One day the reported value is nearing $5 K. The next day it is around $3 K. If I have to pay taxes on the reported value of my HIVE, I will be sunk.
Yellin's plan would force people to sell their assets at reduced prices to pay taxes and created a recession that exceeds anything the US has experienced before.
The amount of people and resources it would take just to track all of this would be impossibly huge. And since it is the government they would almost certainly do it incorrectly.
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Yeah i heard about this. It is lunacy to think something like this could possibly be kept track of and it is just some Sanders / AOC crud that is aimed at taxing the billionaires until they "pay their fair share" even though the billionaires already pay most of the taxes in USA.
Just a couple weeks after this was announced I saw in the news that Musk's personal fortune had diminished by $30 billion because of a drop in the stock value. So when that happens does this mean that he gets a tax writeoff? I bet Yellin hasn't really thought about that one.
Oh that would be wonderful. Yeah, if it goes one way then it is only fair that you get a tax write off if it goes the other way. That would put a sour note in most politicians' tune. Then we would have companies intentionally manipulating their stock value to reduce their tax burden. Every time the government gets involved in something they make it worse.