Basically, let's say you invest $1000 in stock and it gains value and it's now worth $1500. That $500 is unrealized capital gains, until you sell it, at which point it becomes realized. Unrealized capital gains have never been taxable, and it's incredibly irresponsible for Yellen to even float this.
Why? Same thing that sometimes happens if you win a car on a game show where the car is free, but you're on the hook for taxes. Some will have to sell the asset(s) to pay the taxes. What happens when a lot of people sell assets? The value drops. Now suddenly your 401k is worth less, possibly a lot less. The reason you invest in a 401k is so the money can grow untaxed, and you don't pay taxes until you cash out. Stock options also lose a lot of their luster if this happens.
tl;dr Zerobama tried and failed to tank Americans' retirements, Chiden would finish the job. It's essentially another wealth redistribution scheme.
Yea i get that, thats why it doesn’t make any sense. Doesnt seem possible to mechanic a tax for it. Just cause there is some buy order out there waiting for someone to sell to them...? Like I own 100gallons of milk and somewhere else someone might be offering money for 100gallons that nets me a profit, we might not ever even meet, i might not even want to sell, but the gov could step in somehow and just say hey look, this guy COULD profit if he traded right now (could be a loss tomarrow), so he owes us money. Just makes no sense.
Basically, let's say you invest $1000 in stock and it gains value and it's now worth $1500. That $500 is unrealized capital gains, until you sell it, at which point it becomes realized. Unrealized capital gains have never been taxable, and it's incredibly irresponsible for Yellen to even float this.
Why? Same thing that sometimes happens if you win a car on a game show where the car is free, but you're on the hook for taxes. Some will have to sell the asset(s) to pay the taxes. What happens when a lot of people sell assets? The value drops. Now suddenly your 401k is worth less, possibly a lot less. The reason you invest in a 401k is so the money can grow untaxed, and you don't pay taxes until you cash out. Stock options also lose a lot of their luster if this happens.
tl;dr Zerobama tried and failed to tank Americans' retirements, Chiden would finish the job. It's essentially another wealth redistribution scheme.
Yea i get that, thats why it doesn’t make any sense. Doesnt seem possible to mechanic a tax for it. Just cause there is some buy order out there waiting for someone to sell to them...? Like I own 100gallons of milk and somewhere else someone might be offering money for 100gallons that nets me a profit, we might not ever even meet, i might not even want to sell, but the gov could step in somehow and just say hey look, this guy COULD profit if he traded right now (could be a loss tomarrow), so he owes us money. Just makes no sense.