482: Will You Pay This Gigantic Proposed Tax?

After discussing the direction of rents, learn about an ominous new tax that’s proposed.

SCOTUS and Congress are considering a tax on unrealized gains. 

For example, if your gold or furniture appreciates from $5K to $8K, would you have to pay a tax on the $3K gain, even if you keep owning the gold or furniture?

Tom Wheelwright from WealthAbility joins us to discuss this.

Though this is considered a “wealth tax”, the middle class would have to pay it.

The tax case being heard is called “Moore vs. United States”. We expect it to be decided this year. 

Tom & I discuss how few people understand marginal income tax rates’ progressivity.

The last dollar that you earn is taxed at your highest rate. The first dollar that you earn is taxed at your lowest rate.

Timestamps:

Factors Driving Rent Growth (00:02:45)

Inflation, lack of inventory, expired rent freezes, shifting workforce, demand for single-family homes, high employment, barriers to homeownership.

Promising Development in Multifamily Construction (00:05:33)

Multifamily construction reaching a 15-year high, new supply likely to slow down apartment rent growth, inclusionary housing requirements for new construction.

Current Rent Trends (00:08:04)

Single-family rents up 5%, apartment rent growth at 3%, highest rent price growth in the northeastern quadrant of the US.

Supreme Court Case: Moore v. United States (00:11:47)

Overview of the case, implications of taxing unrealized gains, arguments for and against the taxation of unrealized income, potential impact on everyday investors and citizens.

Challenges of a Wealth Tax (00:18:07)

Discussion on the problematic nature of a wealth tax, potential impact on individuals and assets, comparison to estate tax, and potential implications of a wealth tax on various assets.

The tax on unrealized gains (00:22:43)

Discussion on the potential impact of a proposed wealth tax on unrealized gains and the complexities of taxing assets while they are still held.

The regressive nature of wealth taxation (00:24:38)

Exploration of the regressive nature of wealth taxation and the challenges in implementing and managing taxes on wealth.

Tax laws and equal protection (00:27:19)

Insights into how tax laws apply equally to everyone and how billionaires benefit from better advisors to minimize tax payments.

Tax rate misconceptions (00:30:15)

Clarification of misconceptions about tax rates, including the progressive nature of tax tables and the impact of earning more income.

Tax strategies and investment decisions (00:32:17)

Exploration of tax benefits related to investment strategies, including the impact of deductions and the suitability of IRAs for different investment types.

Updates on tax laws and book release (00:34:57)

Announcement of the third edition of the boo