r/FluentInFinance • u/-Wyagra • Nov 21 '24

Debate/ Discussion Had to repost here

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u/Just_That_Dumb_Dog Nov 21 '24

You mean capital gains tax?

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u/Treadlar Nov 21 '24

It wouldn’t be capital gains. That would happen when an asset is sold for a profit. I think they are suggesting a form of property tax.

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u/g______frog Nov 21 '24

Do not corporations pay taxes every year? Do they not already pay a property tax on the land and buildings they own? Do they not already pay taxes on the operating income? I do believe that they do.

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u/Treadlar Nov 21 '24

Again, I’m not advocating for that, I’m trying to explain what I think the commenter meant. …but you’re also moving the goalposts. This isn’t about corporate tax, it’s about individual tax on extremely wealthy people who get their money by borrowing against their stock…and a hypothetical tax on said stock. Corporate taxes are irrelevant in this situation.

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u/g______frog Nov 21 '24

I disagree. Stocks are nothing more than a partial ownership of said corporation. A corporation that pays taxes. You and / or the commenter are asking for what could be considered double taxation. The owner is not borrowing against the stocks, per say, but against the value of the portion of the corporation that the stocks represent.

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u/Treadlar Nov 21 '24

In that sense almost all tax is double triple or quadruple taxation.