A higher tax on the wealthy is reasonable and would probably improve the economy by narrowing the budget deficit and the income gap. However, the recent proposals of wealth taxes on unrealized gains are extreme and would be detrimental to the economy, hurting the very people it’s designed to help. When you start taxing unrealized gains, you hit a lot of problems. For instance, what if you tax a fund that hasn’t been liquidated and has no realized gains yet, but on paper shows a tremendous increase? After the tax is paid, the fund plummets. It’s value dimishes severely. Would the investor (or owner) of the fund then be able to recoup paid taxes based on current losses? Or what if a person is forced to liquidate funds in order to pay these taxes on unrealized gains? And this happens over and over again? Does this then decimate this person’s retirement or investment fund? I say stick with the income tax and forget about trying to ascertain and tax subjective wealth!

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Writer, editor, publisher, journalist, author, columnist, believer in enjoying my journey and helping other people enjoy theirs. bknicholson@att.net

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