A new report from Americans for Tax Fairness found that America’s richest families accumulated $8.5 trillion in untaxed capital gains in 2022
America’s wealthiest families held an astounding $8.5 trillion in untaxed profits in 2022. According to a report from the nonprofit Americans for Tax Fairness, which analyzed Federal Reserve data, “one in every six dollars (18 percent of the nation’s unrealized gains is held by these roughly 64,000 ultra-wealthy households, who make up less than 0.05 percent of the population.” The report comes as the Supreme Court gears up to decide a case that could preemptively block any efforts to tax the wealth of billionaires.
The data looks at “quiet” income generated by “centi-millionaires,” Americans holding at least $100 million in wealth, and billionaires through unrealized capital gains. Those gains accumulate, untaxed, as assets and investments like stocks, real estate, bonds, and other investments increase in value. If those assets are not sold — or “realized” — they are not taxed, yet America’s wealthiest families can leverage that on-paper value increase to secure favorable loans with low-interest rates in lieu of using taxable income to finance their lifestyle.
“Of the $139 trillion in America’s national wealth, almost three-quarters (73 percent) is held by the richest 10 percent of households, over one-third (35 percent) by the richest 1 percent, and an astounding 11 percent — $15.2 trillion — is held by the handful of fortunate households that make up the billionaire and centi-millionaire class,” the report says. “The wealthiest 1 percent of households hold 44 percent of national unrealized gains ($21.2 trillion), with billionaires and centi-millionaires alone controlling 18 percent ($8.5 trillion).”
The situation is that the ultra wealthy never have to sell… Instead they get loans since that is cheaper percentage-wise than paying taxes.
I think that’s The problem though right. Don’t let Mega rich leverage their assets for loans for more assets.
I’m not economist, forcing someone sell something just didn’t make sense to me.
No, let them do that, but tax its use as collateral. It’s effectively an advance capital gains tax then, allowing them to generate cash flow from their assets but also not letting them escape income/gains taxes.
Well, if a sale has to be forced, then so does the purchase. Who are you going to force to buy an asset they may not even want?
Yeah that’s what makes no sense to me, forced to sell, but no concept of buyers. The logic is broken. Sounds cool though.
And on top of that, you’d have to force someone to buy an asset they may not be able to afford, even if they want the asset that they’re being forced to buy.
Guys, we’re talking about the ultra wealthy here. I’m not convinced that they can’t afford it. And besides, valuations aren’t based on nothing. The interested parties are valuating based on what they think would be acceptable compensation, should the loan, or whatever, default. Simplest solution? If the government values your assets at a rate where you can’t find a buyer, then the go government would have to purchase at the established rate.
I want to emphasize here that we are talking about a level of wealth that you will never achieve; A level of wealth that indicates a sickness in society.
What purchase is forced?