Eventually something has to give...

[u/Veshaad]

The bill would provide a $3,000 direct payment to every person in households making $150,000 or less during its first year, which equals $12,000 for a family of four.

[u/Available_Reveal8068]

Can you imagine how different your situation would be if you had to pay the value of 5% of your holdings every year?

[u/Eleventhousand → u/Available_Reveal8068]

Yeah, if I had a few hundred billion net worth, and paid five percent tax on that each year, I'd be in a much different situation.

[u/Available_Reveal8068 → u/Eleventhousand]

So you think you would have 25 billion dollars in liquid assets available to pay the tax each year?

(assuming $500 billion net worth)

[u/Due-Commercial7299 → u/Available_Reveal8068]

Are you kidding? You can earn between 20 to 25 billion in interest alone each year on $500 billion of principle, and that's doing zero investments.

[u/Available_Reveal8068 → u/Due-Commercial7299]

You don't get interest from stock holdings.

That's the whole problem with Sanders' plan--the wealth he's seeking to tax isn't cash money sitting in a bank account earning interest. That wealth needs to be liquidated to pay the tax.

[u/figurative_me → u/Available_Reveal8068]

Yes, when they take out a loan against their holdings, we should tax that.

[u/hmccringleberry615 → u/figurative_me]

They already have to pay it back with interest dum dum it’s not free money

[u/figurative_me → u/hmccringleberry615]

Do Americans get any of that interest they’re paying?

[u/hmccringleberry615 → u/figurative_me]

No why should I? … I didn’t loan them money

[u/figurative_me → u/hmccringleberry615]

We were talking about taxes. Taxes are collected to pay for things.

[u/hmccringleberry615 → u/figurative_me]

Collected from income. A loan is not income.

[u/mxzf → u/figurative_me]

The government gets the capital gains taxes from selling stocks to repay the loan (including interest). And that does have to be paid back eventually, regardless of if it's right when the loan is due or if you wait 'til your estate settles it after you die.

[u/thatguy425 → u/figurative_me]

Americans also don’t pay taxes on loans. That’s kind of the whole point of it being a loan.

[u/xkxe003 → u/hmccringleberry615]

Yeah, the bank gets that money. We're talking about taxes. The government would collect those. Dumb dumb.

[u/hmccringleberry615 → u/xkxe003]

Yeah exactly, it’s a loan not earned income. The government doesn’t treat a loan that must be paid back as income, so I’m saying that makes no sense. They have to pay the loan back with interest and if they don’t, the assets they borrowed against aren’t their assets anymore. It’s not free money

[u/nantuckeet → u/hmccringleberry615]

These people you are patiently explaining basic 101 to are so financially illiterate it’s scary.