Whenever we measure the wealth of the ultra-rich, it’s a valuation done off of their assets which usually fall into the area of “unrealized gains,” which are only taxed when sold, becoming “realized gains.” If it is used to measure your wealth, it should be taxed. The people who benefit from this loophole in taxes like to think of themselves as the embodiment of the American dream, then be that and pay your fair share of taxes.
Since they will be paying taxes yearly off their net gains, we would drop the tax rate from the proposed 39.6% or 43% under the Biden Plan and the current scaled system of 0%,15%,20% to a flat rate of 25%. This, of course, would only apply to long-term capital gains.
Changing capital gain laws will have the desired effect most want because the ultra-rich overvalue their properties to borrow money against the properties to avoid paying taxes. If we tax the gains of the valuation of their assets from the previous year, that means they won’t want to overvalue the property because then they will have to pay more taxes on it.
I’m also open to the idea of providing tax breaks for people and corporations that pay a livable wage to their employees to incentivize livable wages.