This is an excerpt from my previous post so I can highlight my idea for tax equality.

Tax The Wealth!

I propose a campaign slogan: “Tax the Wealth!”

What does that mean?

There is tremendous wealth in this country that goes year after year and is never taxed. An example is when the CEO of Oracle went to build his massive showcase home. He didn’t have to sell his stock in Oracle to do so, no, he just used it as collateral to borrow money. So he didn’t pay taxes on that stock sale. We fix that kind of wealth building with Mark to Market taxes.

What is Mark to Market? It means, at the end of the year, your holdings in stock are measured against their value at the beginning of the year, regardless of whether you sold them or not. So your stock gained $10,000,000 in 2018, you pay taxes on that gain. If they lost $10,000,000 this year, you have that as a loss. Just like you and I have to pay taxes on our interest earned in our CDs or savings accounts. Every single dollar is accounted for. Regardless of whether we realized that gain or if it is still stuck in the CD unrealized yet. We pay taxes on it. That’s fair right?

We can’t allow the Republicans to get away with calling inheritance taxes “Death Taxes.” They aren’t, they are taxes to cover the accumulated wealth over the years that hasn’t seen the light of day. Very few families have enough wealth that they will be taxed on inheritance. We absolutely need to retain this.

Eliminate the loopholes that wealthy have in transferring their wealth to their heirs in the form of trusts. Trusts are a tax scam to avoid inheritance taxes.

Tax Excess Earnings!

Not the earner, but the corporation paying the compensation. This would be on gross compensation, wages, stock options, stock grants, etc. If your C-level staff make more than 50x the average pay in your corporation, there is a 100% luxury tax on that excess amount.

That means if the average employee at XYZ Corp makes $50,000 the C-level can’t make more than a combined average of $2,500,000, every dollar over that average, is taxed at 100%. So your $80,000,000 CEO salary now is costing the company $157,500,000 because of the $77,500,000 luxury tax. Watch those compensations come into alignment really fast.

That will also cause employee wages to rise because a company will want to stay in compliance to avoid the luxury tax. And your CEO wants to make as much as s/he can. That tax is essentially wasted funds for the corporation, better to pay employees than the government.