No. of Recommendations: 4
I stipulated that the two parties of self-dealing grifters would act together to close the loopholes, follow? So.
take away the stepped-up basis,
if you borrow against unrealized cap gains, you pay a 20 percent tax on the loan amount,
if you donate unrealized cap gains the charity pays the Fed 25 % of the proceeds from sales as they occur.
all the other loopholes would be taken away as well.
I mean it's an interesting thought experiment, but it's never going to happen. Sure, if you start from the premise that, "Hey, rich people, we're about to make the tax code a whole lot worse for you - but for a short time only, you've got a window where it's not too terrible for you and you can cash out that one year," maybe you would get some takers. But that initial premise isn't very realistic. If I had super wealth I wouldn't either realize some of those gains into a 20% max rate or wait to see what progressive Dems propose down the road - I'd take affirmative steps to make sure that the Congress isn't going to "act together to close the loopholes." My billions are better spent there than paying taxes.
