Yeah, its like if you have a house. You paid $1000 for it. but an appraiser now says it is worth $10,000. You have not sold it, so you don't have the money. But you now owe tax on 10k. Its fucking stupid. (this is actually how property tax works in most places)
Now lets say you pay tax on that for 10 years. Then you ACTUALLY go to sell it due to job joss and you need to move. But the market is shit, so you only get $1500. You don't get your money back.
This is actually one of the few things California got right is they lock in property taxes or else grandmas would live on the street.
I am using property taxes as an analogy for stocks/bonds/...
Everyone agrees this is stupid for stocks, but we do it for real-estate. I even couldn't get conservatives to see that it is the same. BUHT BUHT YOU GET MOAR MONEY LATER... Oh rly? you sure? ever heard of the housing boom and bust?
Yeah, its like if you have a house. You paid $1000 for it. but an appraiser now says it is worth $10,000. You have not sold it, so you don't have the money. But you now owe tax on 10k. Its fucking stupid. (this is actually how property tax works in most places)
Now lets say you pay tax on that for 10 years. Then you ACTUALLY go to sell it due to job joss and you need to move. But the market is shit, so you only get $1500. You don't get your money back.
This is actually one of the few things California got right is they lock in property taxes or else grandmas would live on the street.
I am using property taxes as an analogy for stocks/bonds/...
Everyone agrees this is stupid for stocks, but we do it for real-estate. I even couldn't get conservatives to see that it is the same. BUHT BUHT YOU GET MOAR MONEY LATER... Oh rly? you sure? ever heard of the housing boom and bust?