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The biggest problem with taxing unrealized gains: Let's say you start a company, and it starts doing well. The market value of the equity you have goes up. You owe tax on it.... way more than your cash. So you're *forced* to sell any time it goes up to get $ to pay tax. twitter.com/CryptoWhale/st

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This would lead to a world where ownership of all companies was constantly churning because any time a company does well, the equity holders have to sell out to generate cash to pay tax on their gains.

6:57 PM · Oct 25, 2021Twitter Web App

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Wen prison?

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so ppl become forced seller the government "realizes" their gains for them at an arbitrary date sounds like some commie shit

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And your bank account just fluctuates according?

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Obviously the rich don't have to worry about this, they can just borrow against their holdings, then they can wait until the peons sell, and buy back cheaper.

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Okay

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All part of the plan ..... take equity away from the scrappers and wild catters to have to give up to the old guard oligarchs.

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sounds like a pretty good antitrust mechanism

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They don't care, Sam. They are in a panic.

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You will probably be able to defer them. Not saying this is a tax I can get behind, but I would be surprised if you had to cough them up in the same book year.

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By the way: you can already use unrealised losses to offset your tax (deferred or otherwise). Would you want to sacrifice this tax instrument if that means you also would not be taxed (deferred or otherwise) on unrealised gains?