Re:ProPublica's tax story
by fshbbdssbbgdd on Tuesday June 08, 2021 @11:37PM
(#27443956)
Propublica calculates a “true tax rate” which uses the unrealized capital gains as the denominator. They don’t make any public policy recommendation in the article, but I think computing the tax rate in this way implies that the unrealized gains should be taxable income. They also mention that Senator Ron Wyden has proposed doing this.
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Why? Calculating the tax rate as “taxes paid” / “net wealth” is just what the effective wealth tax would be if one existed. This is consistent with advocating for a wealth tax, which, as I noted elsewhere, does in fact exist in other OECD countries than the US.
Re:ProPublica's tax story
by fshbbdssbbgdd on Wednesday June 09, 2021 @02:11AM
(#27444755)
Wealth taxes use wealth as the denominator. Propublica uses change in wealth as the denominator.