'People are so angry': how wealth tax became a battleground in Norway's election
theguardian.com
theguardian.com
Making the gap between rich and poor bigger by reducing wealth tax will neither help democracy nor the economy. Just have a look at all the countries that abolished the wealth tax. Nothing good came from it.
Also - I’m surprised Norway’s wealth tax starts at such a low amount of wealth (125K GBP).
Imagine if you joined startup worth $5m. Some stupid VC decides to invest $1m and make your company worth $100m. Now you're paying a cash tax on $100m when you can't even sell anything. You'd personally go bankrupt because of a dumb VC.
I didn't vote for Trump. I don't like tax cuts for the rich and then tax the poor via tariffs. At the same time, I didn't like the fact that Kamala Harris floated the idea of an unrealized gains tax. Where are all the sensible candidates? Do they not have a voice because they're not radical enough?
Fix the loophole where billionaires use their unrealized assets as collateral for borrowing. When they do, make those as realized assets and tax them. Don't apply a blanket unrealized tax.
Given that you yourself mention the figure of $100 million, did you perhaps misunderstand the proposal and think that it applied to unrealized gains on any asset theoretically worth more than $100 million? The criteria proposed were not such that merely having share options in a private company with some theoretical $100 million valuation would classify you as having $100 million in wealth for the purposes of the tax.
Harris’s unrealized gains tax was to apply only to taxpayers with a net wealth of over $100 million. So it would have had no implications for a typical startup worker hoping for an eventual equity payday.
Do you not see how dumb that is? Value can be anything. I can create a $1 trillion company right now out of thin air. All I have to do is give myself 0.000000000001% of shares for $1.
That's what property taxes are. Most people's largest asset is their house. So actually most people are already paying taxes on unrealized gains. It's only genuinely wealthy people, who generally have more valuable assets, that don't.
> Now you're paying a cash tax on $100m when you can't even sell anything.
It's impossible to write the law to avoid this type of situation?
> When [billionaires use their unrealized assets as collateral for borrowing] make those as realized assets and tax them
That works too! And also ban buybacks. If companies want to return profits, pay dividends.
This would require taxing people on the market value of their home pre-mortgage deduction(which is the exact same scheme as what billionaires use just on the smaller scale),which would never pass anywhere.
I am not a lawyer, but I suspect waiving the deductibility of interest expense/debt based on wealth would be blatantly unconstitutional in virtually all of EU.