For illiquid holdings, the plan only taxes them at time of sell (which, by definition is when they are liquid). The only thing that is taxed continually are things like stocks, that are pretty liquid (though can be put into structures that make it illiquid, which may be a tax avoidance strategy?)
Right, so this doesn’t hit real estate or private companies (yet), but it would hit many very wealthy people who have large holdings in publicly traded companies (often ones they founded).
Looking at you Bezos…
And it’s true stocks are quite liquid, but if the person never sells to realize gains, they will never be taxed…
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For illiquid holdings, the plan only taxes them at time of sell (which, by definition is when they are liquid). The only thing that is taxed continually are things like stocks, that are pretty liquid (though can be put into structures that make it illiquid, which may be a tax avoidance strategy?)
Right, so this doesn’t hit real estate or private companies (yet), but it would hit many very wealthy people who have large holdings in publicly traded companies (often ones they founded).
Looking at you Bezos…
And it’s true stocks are quite liquid, but if the person never sells to realize gains, they will never be taxed…