I hear people screech that someone's net worth has increased by a few million and that the few million should be taxed.
That few million is unrealized capital gains.
Most homeowners that have lived in their home have noticed that their home value has increased over time. The difference between what one paid for the place and what it's worth now is also an unrealized capital gain.
Like the millionaire's stock, the working stiffs house has created a capital gain.
The people that want unrealized capital gains taxed probably never thought of that one.
Over 30 years the value of my home has tripled. For this area that sounds about right.
The figure of 25% of a capital gains tax has been tossed around and that means if you bought your house and paid $100K for it and it's now appraised at $200K then you owe about $25,000.
As in sit down and write a check.
Fair is fair and if the millionaire just had an unrealized capital gain of $4 million he should cough up a million bucks.
If he has to, you have to and you better be able to sit down at the kitchen table and write a check for $25,000.
For those that say he isn't paying his fair share, he is. He's paying the same 25% you are. He's also writing one hell of a bigger check than you are.
While an oversimplification, you get the drift.
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