muon2
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« on: April 30, 2021, 08:41:23 AM » |
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The most common wealth tax in the US is the property tax. Assessors will tell you that coming up with a consistent valuation isn't easy, and like any part of the tax code there are plenty of loopholes. Because valuation of a fixed asset is harder than valuation of actual income the loopholes for property taxes can be exploited in ways that income-based loopholes cannot. Some units of government have personal property taxes to extend wealth taxes beyond real estate. Assessing these non-real estate properties are often quite difficult and IL abolished their personal property tax years ago in favor of an overlay to the corporate income tax.
The cleanest way to value assets that comprise wealth is in a fair market sale. Capital gains is based on that, but if the basis is the purchase price then part of the tax is coming from the increased value from inflation. A tax on sales or income doesn't have that factor. If the goal is to create a better capital gains tax on wealth then the basis should be adjusted for inflation and the rates raised to match other income.
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