1254: Taxing the rich. @JosephSternberg, @WSJOpinion
Image: The Rich Man at His Table, from The Parable of the Rich Man and Lazarus Joseph Sternberg: @josephsternberg, @WSJOpinion; Political Economics column; WSJ editorial board; in re: “Happy that he’s on target, but the target makes me unhappy.” In the US, capital gains are becoming a more reliable income source for the govt; Fed helps inflate asset markets to create a new tax base almost out of thin air. In the mkt: can be taxed on ___ and on increase in asset between when you bought and sold. . . . As the govt becomes more reliant on capital revenue . . . Plan to tax gains even though you haven't sold? Now, to be taxed on a gain, you have to realize it – but there's a plan to tax unrealized gains even if you haven't sold anything. Is Powell aware of this tax issue? Not seen any suggestion that he has. Govt is addicted to borrowing—debt svc costs becoming serious. Fear of inflation has rocked the a markets. If the new tax happens, will come in context of “making the rich pay their fair share” after covid. This is much bigger than that; it changes relations between govt and citizenry. https://www.wsj.com/articles/bidens-stimulus-and-the-financialization-of-taxes-11614272986