When is a Wealth tax not a tax? During an interview with CNN on Sunday, Yellen touted the idea of taxing the unrealized capital gains of the wealthiest 1 percent, though she claimed the measure would not count as a “wealth tax.” But that’s not what Pelosi says.
House Speaker Nancy Pelosi (D-CA), in contrast to Yellen’s claim, called the kind of tax Democrats are considering a “wealth tax.” “We probably will have a wealth tax,” Pelosi told CNN on Sunday.
Here’s how this works. Capital Gains will be taxed on what the value is at the time. Not when it’s sold. When sold, it’s taxed and that’s it. But under this new plan, You’re taxed every year if you don’t sell the stocks, collectibles, etc.
Now supposedly this would pay for the new social programs. What happens when that wealth goes down? Now your not raising the money you claimed. Now the only way to get that revenue is to go after everyone.
NEW – U.S. Treasury Secretary Yellen proposes a tax on unrealized capital gains to finance Biden's "Build Back Better" plans.pic.twitter.com/pefi3PhoDe
— Disclose.tv (@disclosetv) October 24, 2021
Here’s an example.
The proposal slated to be released would slap annual taxes on the increased value of the assets of the wealthiest Americans, even if they’re not sold, or “realized.” Currently, assets like stocks are taxed only when a person sells them.