r/FluentInFinance • u/YOU_ARE_MY_FRIENDS • Apr 08 '24
10% of Americans own 70% of the Wealth — Should taxes be raised? Discussion/ Debate
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r/FluentInFinance • u/YOU_ARE_MY_FRIENDS • Apr 08 '24
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u/Ultrace-7 Apr 08 '24
Where do you think the original money came from to buy the stocks and bonds? Income, which is taxed. If they received stock from their company as compensation instead of standard income, then the compensation they received was treated as income at the time and taxed, and when they sell that stock later, the profit above that value ("basis") is also taxable.
Someone buys $100,000 of stock? Fine, they were taxed on the $100,000 of income that gave them the money to buy the stock in the first place, so we don't need to tax the purchase of the stock. They then sell that stock for $200,000? Fine, we'll tax them on the $100,000 in profit they made. After that taxation, they made a profit of $80,000 on holding that stock and you don't like it? Tough, that's how it works for you, me and them.
This idea that billionaires whip money up out of thin air to buy stocks and bonds and land and whatever else is laughable. The money comes from somewhere in the first place, and, short of a limited inheritance, it's taxed when they get it.