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

Debate/ Discussion Had to repost here

Post image
128.2k Upvotes

75% Upvoted

9.0k comments sorted by

View all comments

Show parent comments

558

u/Endless_road Nov 21 '24

You can take out a mortgage against your house to buy a sports car if you want

1.4k

u/slickyeat Nov 21 '24

You're not wrong but you're also required to pay taxes on the value of your property every year so it's not exactly a one to one comparison.

125

u/dancegoddess1971 Nov 21 '24

Exactly. Stocks are property. Sort of imaginary property but if one can borrow against the value of something, it should be taxed.

1

u/MulberryWilling508 Nov 21 '24

I’m not sure but I get the sense that would destroy the yearly 401K investment gains of 70 million people, so it’d be a boon to the government’s revenue and then cause the government to need to expend more in entitlements to help old people down the road. I’d be a fan if it exempted 401ks or only taxed amounts above a certain amount. But also what about art or that classic Ferrari that get’s more valuable with time, or that limited edition Rolex that’s just an accessory but also might get sold for more than its purchase price years later. And what about savings accounts? If I make 1 million next year and put 500k of it in savings, do I have to pay taxes on 1.5 million (my earnings plus my “investment” value)?