AS I PREDICTED, WE’RE STILL WAITING FOR ITS PROPONENT TO EXPLAIN HOW MARK-TO-MARKET TAXATION OF CAPITAL GAINS WOULD BE IMPLEMENTED
One argument that I have seen that supposedly supports this nutty idea is that gains can be compounded if they’re not taxed, which will increase the concentration of wealth among those with large holdings. The obvious fallacy in that argument is that the only way gains can be compounded is if they are reinvested. Reinvestment requires either liquidation or reinvestment of dividends. Liquidation and payment of dividends are taxable events. Nothing in this stupid proposal would change those fundamental principles.
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