Tesla and SpaceX CEO Elon Musk is at the top of the world’s richest people list these days.
He also knows once the government institutes a tax, it’s very difficult to un-do it. If anything, they’ll expand the scope of who is being taxed and increase the percentage of the tax over time.
Musk acknowledged this fact in response to a post from a Twitter user who said, “any new unrealized capital gains taxes will slowly make their way down to middle class retirement investments over the next several years.”
Musk’s response: “Eventually, they run out of other people’s money and then they come for you.”
This all came about when President Biden, Treasury Secretary Janet Yellen, and Congressional Democrats introduced a proposal to tax billionaires’ unrealized capital gains. This proposal is included in President Biden’s $2 trillion “infrastructure” package and is supposed to pay for it all.
In a nutshell, Biden, Yellen, and gang want to tax billionaires (for now) on income they haven’t yet realized from selling liquid assets.
As CBS News reports:
Tradable assets, such as stocks, would be valued annually. Billionaires would be taxed on their gains — whether they have sold the asset or not. Under current law, a gain is only taxed if it is "realized" when its owner sells the asset and books the profit.
But does this mean they will be taxed on that income again as a capital gains tax when they sell their asset? Does it mean they can deduct any losses “not realized” in a given year?
The plan has been described as a “harebrained scheme,” “insanity,” and “not just lunacy but straight up premeditated murder of our economy.”
Some experts have warned about the constitutionality of this Billionaire’s Tax and point out the Jeff Bezos and Elon Musks of the United States could just pack up shop and leave the country, taking all of their realized and unrealized income with them and leaving our Treasury even more dry.
Rumors out of Washington, D.C. are that this tax is dead . . . for now. But be aware, many politicians have never seen a tax they don’t like, and this one will surely be back at some point.