Billionaires are hoarding trillions in untaxed wealth. They want the Supreme Court to keep it that way
Billionaires are hoarding trillions in untaxed wealth. They want the Supreme Court to keep it that way
America’s wealthiest held $8.5 trillion in untaxed capital gains during 2022, and efforts to tax them will soon face Supreme Court scrutiny.
A new report from Americans for Tax Fairness found that America’s richest families accumulated $8.5 trillion in untaxed capital gains in 2022
America’s wealthiest families held an astounding $8.5 trillion in untaxed profits in 2022. According to a report from the nonprofit Americans for Tax Fairness, which analyzed Federal Reserve data, “one in every six dollars (18 percent of the nation’s unrealized gains is held by these roughly 64,000 ultra-wealthy households, who make up less than 0.05 percent of the population.” The report comes as the Supreme Court gears up to decide a case that could preemptively block any efforts to tax the wealth of billionaires.
The data looks at “quiet” income generated by “centi-millionaires,” Americans holding at least $100 million in wealth, and billionaires through unrealized capital gains. Those gains accumulate, untaxed, as assets and investments like stocks, real estate, bonds, and other investments increase in value. If those assets are not sold — or “realized” — they are not taxed, yet America’s wealthiest families can leverage that on-paper value increase to secure favorable loans with low-interest rates in lieu of using taxable income to finance their lifestyle.
“Of the $139 trillion in America’s national wealth, almost three-quarters (73 percent) is held by the richest 10 percent of households, over one-third (35 percent) by the richest 1 percent, and an astounding 11 percent — $15.2 trillion — is held by the handful of fortunate households that make up the billionaire and centi-millionaire class,” the report says. “The wealthiest 1 percent of households hold 44 percent of national unrealized gains ($21.2 trillion), with billionaires and centi-millionaires alone controlling 18 percent ($8.5 trillion).”
And yet people who want raises are the drag on the fucking economy.
And all those damned social programs.
I know I'm on one, but that's because I actually need it, not like everyone else who are just abusing it. Mostly those foreigners who are both lazy and murderous, but also stealing my job
/s
When has the US turned into a regime led by the supreme court? All my life, whenever something was up, you heard what the president did or tried to do or whatever. Nowadays, all headlines about the US are about something the Supreme Court with it's undemocratically elected judges gets to decide over all lawmaker's heads.
Congress being so bad at legislating has basically forced the Supreme Court to legislate. I obviously don't agree with decisions like ending Roe v. Wade, but abortion should never have been up to them in the first place. Those kinds of decisions should be up to congress to make clear laws.
We have a completely dysfunctional congress and its been only getting worse for decades. It's a symptom of a much larger illness in America. I remember decades ago some of my most conservative family members debating policy with some of my most progressive over coffee. Now the media has pitted them against each other so much, that they literally have their phone numbers blocked in fear that some of their ideology might slip into their bubble of an echo chamber.
Don’t worry, when Trump is reelcted, he’ll fix that glaring loophole and make himself supreme ruler.
A friend of mine used to call them 'our mullahs'. I used to laugh him off. Now, I'm not so sure.
I do the same thing.
The Supreme Court has been powerful for a long time.
Since the early 19th century.
https://www.history.com/news/supreme-court-power-john-marshall
Don't forget about the most powerful person in the world, the parliamentarian.
This has always been the case. 3 co branches of government. The fact that you hadn't heard it much is probably either a case of you paying more attention, or it getting more attention.
But yes, republicans have politicized the court, so it's even more divisive now.
Technically, as they were Voted into Office by Senators representing the interests Voters, they are democratically elected via Representative Democracy.
I guess if you change the definition of "democratically elected," then sure. Supreme Court Justice is an appointed position. It's literally the entire point of the distinction between the two (elected vs. appointed).
If you were to consider anyone appointed by an elected official as being "democratically elected," then that would mean that nobody is appointed. It would become a distinction without a difference.
Billionaires are the real welfare queens
Oh come on, Jeff Bezos needed that money, he lost money one year! Those tax returns were definately a make or break for him!
and to further clarify
/s
This is how you get nobility. Before Reagan, wealth typically dissipated by the third generation. We are heading toward the old European model, where families are rich for a millennium.
Hopefully we can also head for the other old European model of dealing with them that the French popularized.
Exactly. They may not call themselves nobility but their influence is the same if not more.
Fortunately for the billionaire class, Clarence Thomas' legal opinion is always for sale.
Clarence Thomas is a traitor to the human race. He'd sell us out to aliens if given the chance.
Societies should not allow billionaires as long as there are people who can't even get food on the table. It's just morally and ethically wrong. Some would even say unchristian.
The answer is simple. Butcher the billionaires and their fortunes. Eat the rich and use the money for social work.
They hit a billion (or really $100 million), loose all assets (aside from a small seed amount), get another star on their chest, and try to do it again. Those who care about the rat race will jump through hoops for what they value, while the rest of us are able to maintain a healthy work/life balance.
My cyberpunk solution is that once you cross the billion dollar net worth threshold, it becomes legal for a team of any size or an individual to register with the billionaire hunting office.
If a registered person or group is successful in killing the billionaire, all of their assets (including any managed by a trust on their behalf) are seized, liquidated, and distributed to the group.
Anyone paid to protect them, anyone affiliated with an organization paid to protect them, or anyone (regardless of affiliation or payment status) within a certain physical proximity to the billionaire is fair game.
As much as I understand Jesus was a socialist, even he couldn't write rules to live by that can't be bent, manipulated, and plain broken. Morals and ethics are a feeble reed to lean upon.
It's a good thing ZERO Justices have taken luxurious trips and gifts paid for by these same exact billionaires that could inject literally TRILLIONS into our communities!
It's the best Supreme Court money can buy!
Fuck that’s a big boat.
Does one person seriously need a boat that big?
Like you can have a smaller boat but it still be tens of millions of dollars and not require an army to crew.
It's not even just the price of the boat though. It costs around 10% of the cost of the boat every year to keep it running.
Oh they have a smaller boat too. It's inside that big one.
But just think about how many jobs that boat is creating!
That was unironically the argument when people were asking why do we have to take a historic bridge apart (again) in Rotterdam just to let Jeff Bezos' toy out to the ocean.
Seize the yachts, make them billionaire prison boats, national guard shoots anyone who leaves
Does one person seriously need a boat that big?
No amount of people seriously need a boat that big. Not that kind of boat.
100% idle wealth tax
What about my emergency fund? That is idle wealth.
Is your emergency fund $100bn? Tax brackets exist. No one's talking about you.
The solution here isn't to tax unsold goods, it's to tax the banks on all the income they're getting from these loans.
The solution here isn’t to tax unsold goods
Why not? People are taxed for unrealized gains on a house. Why should stocks be any different?
Like it or not, most of the US has moved away from pension-based retirement in favor of 401k based retirement. Taxing unrealized capital gains makes it that much harder for the plebs of society. The rich will complain about the extra taxes but ultimately won't really affect them much.
Taxing people on unrealized gains on a house is abusive and leads directly to maximum landlords and minimum home ownership. Why are we defending that?
One argument could be that anything that incentivizes people to sell their stocks isn't a good thing
The more people buying and selling at any given time, the more volatile the price could become, it's so easy to buy and sell stocks that we already have to have high frequency trading disincentives by having a really high capital gains tax on stocks that were held for a short period of time
Property is a lot less volatile, and there's already a rather large natural incentive to hold on to it for long periods of time (moving is a pain), and taxing unrealized gains on it (essentially, paying estimated taxes on a theoretical future sale) is unlikely to really motivate anyone to sell their house
TBF we are talking about unrealized gains. Their investments are worth more on paper, but until they sell them, the actual profit or loss will fluctuate. It would be an accounting nightmare to figure tax on unsold investments every year. I do, however, think capital gains should be taxed at the same rate as wage income.
They should be forced to sell, that is the point. Accounting is complicated because people want to hide wealth. None of this is actually complicated it's just been made complex.
roughly 64,000 ultra-wealthy households
Get your forks and knives ready, fam. We'll be eatin' good, soon.
Guillotines
Firing squad is less disgusting
There are only a bit over 3,000 billionaires. That would hardly fill us up.
headline should read
they want to "PAY" the Supreme Court to keep it that way
$8.5 trillion in untaxed profits in 2022.
through unrealized capital gains.
Just to be clear, we're talking about wealth taxes, not income taxes. Yes, the wealthy have all kinds of avoiding paying fair income taxes. But, this is a different issue, this is a wealth tax.
It's important to realize, that most of the US already has a form of wealth tax: property taxes. The thing is, property taxes are a regressive form of wealth tax. Sure, the poorest people pay no property-wealth tax, because they're not wealthy enough to own taxable property. This time they do catch a slight break. Anybody who is middle-class and lucky enough to own a home pay the highest percentage of their total wealth as property-wealth taxes, because virtually all their wealth is tied up in that property. The wealthy pay almost no property-wealth taxes relative to their total wealth because only a tiny amount of their wealth is tied up in property.
If you graph it out, at the bottom the effective wealth tax is zero, then it jumps to a much higher number, then it declines more and more as you get richer and richer.
I say screw property taxes and replace them with a proper progressive wealth tax. Along with that, an inheritance tax with teeth and proper enforcement. The grandkids of billionaires should be starting on an equal footing with everyone else.
A ruling against wealth taxes would be insane and would essentially overturn our entire history of tax law. But it would be especially nuts in light of the ruling in NFIB v Sebelius that the government can hit you with a tax for doing nothing. That seems utterly incompatible with the idea that the government doesn't have the power to tax owning things and/or amassing wealth.
I guess that would mean you can tax not buying something, but you can't tax not selling something.
"But what if I become rich... I should vote against my best interests just in case."
In terms of unrealised gains, that's kind of a tricky one. They certainly do benefit massively from unrealised gains though, like anyone would on paper.
The best quote for this I've ever heard is "Europeans vote like they'll one day be poor. Americans vote like they'll one day be billionaires."
Do these nimcompoops realize that the existing wealthy elite, few in their number, got that way by exploiting social safetynets and taxpayer funded infrastructure for their gains?
So cleary, if we want to be able to generate more wealth and more millionaires/billionaires, better social programs and infrastructure will get them there. Imagine how much easier it’ll be to become wealthy if you don’t have to give employees insurance, or tuition reimbursement? Or if there’s an amazing system of roads, rails, and ports to move your goods to consumers? God, you could become a successful businessman and still have a conscious. Best of both worlds.
Yeah and the worse thing is that if they try and tax that, the retail investors like you and me are the ones getting fucked while these people get richer because of more profitable arbitrage oppurtunities.
I'd go back in time and stop the founding of private equity.
We need to tax them on a different basis once they achieve far more than is reasonable for themselves and their family.
Instead of taxing them for the value of liquidity moved into or out of their care; we should tax them based on how much their value grows each year as well as assessing any normal "wage tax" as needed.
So if you grow in net worth value by 200%, so too do your taxes grow by a certain percentage. This tax is then paid directly each year. Your losses in worth do not count, and do not decrease your taxes until several years later. This should prevent anyone from tax dodging this, as even if you only held the money for long enough to activate this tax, you still held it.
This tax also applies to companies holding, far in excess, more money than they reasonably need to operate normally. No business shenanigans should save one from being taxed for accumulating more wealth than reasonable.
While most people in the world need not fear tripping this tax, anyone who is within the top 1% should be wary of it.
This has complications for people who own assets they can't sell in part, especially somebody inheriting a family property, etc. But it's solvable, because the main loophole these billionaires use is to take loans with the assets as collateral, generating cash flow which cost them less than taxes (interest rate is below taxes), so then we can tax the use of collateral in loans instead as a complement to capital gains tax on sale.
Corporations need to be taxed on revenue, not profit.
Nobody needs this kind of wealth. You have to be a real douchbag to buy this kind of boat. Many ways to use wealth without showing off in this un tasteful way. Unfortunately most of society today loves to see rich people on tickfuck and instagram. It will only get worst.
Read a book have a beer with a friend. ok bye.
The solution is simple. Murder them and all their heirs. Begin a new Bastille Day.
I'd prefer if we all die in a nuclear Armageddon.
That actually looks pretty attractive too, considering the way the future looks if we manage to solve the socioeconomic issues we have. Still bleak AF.
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Lemmy Pro-Status Quo Shill
It's kind of difficult to pull off solo, and for obvious reasons any serious group that's organizing or planning anything will have some fierce consequences or hurdles to deal with. At least if it's openly talked about, and it happens to be the solution we need, better to have the idea out in the open than to sit here and say "Yes please, leopards keep eating my face, yes please, let the rich keep taking what little we have away more and more".
At least if we start standing up and letting them know where the true power is, we can also instill some fear, and it's the humane thing to do before they end up seeing their neck stump from their own head sitting in a basket. All they have to do is set aside SOME of their disgusting greed and allow the rest of us to perceive hope for the future before it truly has to resort to violence.
I don't expect that though, as we have many examples throughout history where people resorted to violence after absolutely nothing else works.
Billionaires will never allow things to be fair or nicely do the right thing. People know what has to happen, it won't be via a court ruling. Plus they have class solidary and own judges/people in power.
No fucking shit
I find it super weird that there are people out there that still defend this practice while they make no money and live in a ‘trickle down’ delusion.
I’ve had numerous conversations with two of my brothers who have no money but this ridiculous ideal they are in the same box as musk and treat him like he’s vulnerable as if he represents ‘the working man’.
Ask them if they're broke because they're useless and lazy.
It's a feature, not a bug, you silly goose. Now get back to work making excess profits.
And once enough "friends" have stepped up to show their "friendship" to the iSCotUS, they'll rule as the "friends" desire.
Resetting the cost basis on death is a huge issue.
I'm gonna call this now. The Supreme Court will uphold keeping trump off the ballot. But won't allow a wealth tax, because this Supreme Court will attempt to do a "this for that" deal with the American people.
sounds like clarence is gonna get some late christmas presents
These are the people who give members of the court thousand dollar/day vacations and expect you to believe that it's just coincidence and good jurisprudence that the court rules in their favor every time.
We have no compassion and we ask no compassion from you. When our turn comes, we shall not make excuses for the terror. (Karl Marx)
Uh. How can billionaires hold trillions? That would make them trillionaires, idoit.
/s
Eat the rich