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Old 09-02-2019, 05:17 PM
Ludovic is offline
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Join Date: Jul 2000
Location: America's Wing
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Originally Posted by Wrenching Spanners View Post
Wealth from stock price increases? You're going to force people to realise they're investments - sell their shares before they're wanting to - in order to pay for the stock going up. Probably that would lead to some sort of rebalanced equilibrium between share increases and dividends, but if there's any volatility in the stock market, which there will be, finding that equilibrium on tax day is going to be impossible.
I'm not sure whether to tax unrealized gains, but if so then those effects for fungible equities could be tolerated (except the odd case of where an employee, even a high level one, has options that they are prevented from selling, which would make it not quite right to force them to pay taxes on them prematurely.).