Caller: Wealth Tax Makes More Sense Than Taxing Capital Gains

Caller: Wealth Tax Makes More Sense Than Taxing Capital Gains


So we had a guest on not only cancel on us
last minute today, but do it in the room rudest way that we’ve ever experienced a hurling
abuse at producer pat. Uh, you, maybe someday I will tell the story
about what happened today, but it is crazy. Um, but the situation we find ourselves in
is that, um, we were planning on using that interview today and now we don’t have it and
we’re not on a deadline. So because so many people are always hoping
to call in, we are opening up the phone lines at (617) 830-4750. Uh, let’s see what is on people’s minds today. Briefly. Uh, let’s go to mark from Newport. Mark from Newport. We haven’t heard from for a while. Uh, what’s going on mark? Okay. Who? David? Um, so I had actually posted about this on
your sub Reddit, but I wanted to try to dig a little deeper over the phone if possible. So you had mentioned that as opposed to Elizabeth
Warren’s wealth tax, you had preferred alterations in the way capital gains are taxed as a means
to tax accumulated capital. So as a financial advisor, that just seems
like an inefficient way to tax accumulated capital, which I really want to. So I was just curious, what am I missing? Well, how, how would you like to tax it? I would prefer something along the lines of
Elizabeth Warren’s wealth tax, just because there’s not as many ways that people like
me are required to basically help people avoid that tax. If you read into her proposal, it’s pretty
much just every dollar over 50 million, um, with nothing really excluding. Now I would be open to the conversation of
excluding certain types of assets from that or if you’re forced to draw assets, maybe
avoiding them from other types of taxation or, I don’t know, I’m open to that conversation,
but I just as I think as a means as to have a broader tax base to bring in more revenue
and just to to limit wealth inequality. I think there’s less room for people like
me to help people avoid paying taxes. Yeah, I mean I think that you have to balance
every single one of these proposals with the path to making it a reality and a number of
what seemed to be like pretty good legal analyses that I’ve read say that passing a wealth tax,
like what she is proposing, whether or not you exclude certain types of assets would
be extraordinarily difficult and it could take a decade while it’s hung up in courts. So I think there’s simpler things that could
be done that would be legally less complex in order to raise revenue. I mean one of them is, and this is usually
thought of merely in terms of the context of social security’s viability, but you could
raise the income cap on social security from whatever it is now, 123,000 I believe, to
something higher than that. You don’t have to put any new infrastructure
in place. You’re literally just changing the number
by a different amount than you would by inflation alone and you immediately generate significantly
more revenue when it comes to capital gains. You are right that there are whole industries
built around helping people avoid capital gains, but there are also changes that can
be made at the most drastic, which would have a lot of opposition would be taxing capital
gains at the same rate as ones a wage would be tax based on their income. Um, that would be really do realize the game. I’m sorry, what was that? Oh, I’m sorry to interrupt. You still get to choose when you realize that
game and then you can still like Orient your investment allocation. You can keep the games on there. There’s no question about it. There’s no question about it. It’s not a silver bullet for sure. Um, but I think that when we think you’re
thinking about all the right stuff, I think that the PR, what we should really think about,
even if we like the wealth tax in principle is the reality that legislatively it would
be extremely difficult. That’s not a reason not to think about it. It’s not a reason not to do it. I just think there may be lower hanging fruit,
but it sounds like you’re thinking along the same lines. Yeah. The bottom line is that is accumulating capital
needs to be taxed, so whatever can get passed should get pass. All right mark, great to hear from you. Mark from Newport. I was now down the road from you Narragansett
over the weekend. Oh, no way. I, I lived there while I was in school. Yeah. You know, I didn’t love it. I have to admit I didn’t, it wasn’t like the
best place, but it was a, it was a good, a good weekend. All right, mark, great to hear from you. Appreciate the call.

70 Comments

  1. Glen Bautista says:

  2. Johnny Guillotine says:

    Do both and close the all the loop holes.

  3. Marc Hill says:

    You can’t tease like that and not tell the story!

  4. Noah Redmond says:

    It's really hard to escape a VAT. It's much easier to escape a wealth tax.

  5. Tabithia Moore says:

    What Conservatives don't get is that America is not Capitalist, we are a "Mixed Economy" which includes elements of Socialism and Captialism.

    Mixed Economics is the most successful economic style in human history and key to developed societies.

    P.S Dave PLEASE Be Nice Start responding to me on Twitter I follow You 💙😭 Tabithia Moore

    Bernie2020 💙 WomenForBernie

  6. osirus777lv says:

    Tax all income as income amd abolish capital gains tax. Why should the main income of the wealthy be taxed at a lesser rate while working people have to pay a higher percentage. Total bullshit.

  7. Maxwell Schmidt says:

    It needs to be a multi-layered approach. I agree that there's a lot of potential low-hanging fruit, but the left needs to be serious about a wealth tax to make the right clamor for moderate changes to enhance collection of capital gains taxes, or estate taxes, or whatever. In principle, I would like to see a wealth tax because it truly incentivizes the wealthy to keep their money in business assets, where it has some trickle down effect.

  8. Hope A. says:

    I have a suggestion: ( 2.5% of your savings money ) not from your ( income) , each year.

  9. Tim S says:

    When you have a "discussion about exclusion of assets" for a wealth tax then you open the tax to avoidance loopholes. It would be as vulnerable as capital gains. The rich ill always be able to employ bought politicians and unethical accountants/financial advisors to avoid taxes.

  10. The Russian Troll Network says:

    How about a poor tax instead liberals
    TRUMP 2020

  11. Seekarr says:

    Any guesses on the shit head who cancelled?

  12. Gage Tomerlin says:

    Makes sense. Sweden doesn't have a capital gains, property, or gift tax. They just have a more progressive tax system with more brackets.

  13. Mike Sexton says:

    A wealth tax is an awful idea. It’s not constitutional first of all and secondly, every year an audit would have to be done to establish how much wealth someone has. This creates a moral hazard in that people will have to sell their businesses, investments and land just to pay the tax.

  14. Left wing Archie Bunker says:

    We need a 1% wall street sales tax along with nationalizing the Federal Reserve. Subscribe to my channel where I talk about these things, or don't that's cool too.

  15. malekmadek says:

    Is it possible for me to make a one time donation rather than paying monthly?

  16. Tee Bee says:

    Tax the rich or eat them.

  17. Abtin Khamoshi says:

    Narragansett was destroyed in this debate

  18. MrPhilsterable says:

    A wealth tax also means that you dont hurt those of us that aren't rich but still invest for retirement. Capital gains indiscriminately targets every investor rich, middle class, or poor. Perhaps treating those gains as income instead of something separate would solve this (and make the most sense).

  19. Richard Dixon says:

    Ain’t going to happen alt leftist

  20. Richard Dixon says:

    Alt leftist commie on one hand elitist on the other. Dumb as the fake news they are in the end

  21. Richard Dixon says:

    The educated make more, alt leftist want to tax the educated

  22. Mas D'Cypha says:

    Can someone tell me how the phone lines work. Do you just call and you're constantly on hold or do you have or keep calling?

  23. javi del says:

    TAX THE RICHS!

  24. Elias says:

    A wealth tax would only tax money in the bank or not in use. This would push people to actually invest or start businesses instead of letting money sit idly.

  25. Hoansbuckler says:

    I want more government accountability, trillions of dollars over the decades wasted on who knows what, we'll never know.

  26. John Marlowe says:

    A Fairer Tax policy would exempt the first $40,000 for every taxpayer, Next cut, exempt the first $45,000, then the first $50,000, etc.. A bottom up tax policy allots the relief equally to each and every member of the pool of taxpayers.

  27. aaron gibson says:

    Petition to have David tell us what happened.

  28. shamus248 says:

    I wanna call David's show. Do any of yall know when he goes live? Lol I'm on the east cost so I gotta be considerate about time zones etc

  29. Corey A says:

    I’ll never understand why liberals think taxing the wealthy is going to make there life better. The government needs to learn how to budget and stop spending so much on defense. Also before anyone has to pay more in taxes corporations like amazon need to be paying there set rate.

  30. Jon Lytle says:

    According to taxfoundation.org, even taxing people with incomes over 10 million at 70%, would only increase tax revenue by 700 billion in 10 years. This isn't enough money, to cover the health insurance for the 10 million undocumented workers, the Democratic candidates all proposed during the debates. We will need substantially more millionaires/billionaires to cover all the new proposed government programs.

  31. Richard Alexander says:

    Call it a winner tax, only the elite get to pay.

  32. Raptorman0909 says:

    The wealthy make most of there money through investing and therefore capital gains. If you don't tax the capital gains they will find a way to escape taxes by playing the usual three card monty game with shell companies etc. If the capital gains taxes are applied at the time of the transaction there's no place to hide. A wealth tax also affects the higher earners that gain there money through actual work like professional sports or entertainment — they already pay a much higher tax rate than the leisure class because the leisure class pays so little in capital gains taxes. The average and below average worker pays as much or more in social security and medicare than the leisure class does in capital gains. The average worker pays more than 7.5% from there paycheck, but in addition the employer also deducts another 7.5%+ before the employee sees the paycheck making the total over 15%. So, when you figure in all the other taxes that working class types have to pay and can't escape, taxes like sales tax (4%-10%+), property tax on their home, automotive licensing fees, bridge and highway tolls, and a host of other taxes the average worker pays more like 25% to 35% in taxes while the leisure class, sunning themselves for the summer on a yacht in the Mediterranean without having to do a moment of actual work, often pay less than half the total tax rate of the middle class at 15% or less.

  33. SUPPORTING TRUTH says:

    If another woman gets the nomination to run for president – that will, unfortunately, assure Trump's victory in 2020. that's just the way it is in this country at this time.
    The only way a woman could win the presidency in today's climate, is if she was straight and big and Husky and somewhat masculine with a strong booming voice.

  34. Scniff Kenauser says:

    did pat have bussa cap?

  35. Jcewazhere says:

    We already tax wealth through property taxes. That tax affects middle and upper middle more than any other group because most of their wealth is in their home. Aside from real estate moguls most rich have far more in the bank than they do in their property and the lower middle class and poor don't own their homes.
    Expanding property taxes to include boats, planes, and investments seems like a good idea. Since you're just expanding what falls under an existing umbrella it shouldn't be as hard as creating a new tax from whole cloth.

  36. Carole Coplea says:

    What if the Democrats win all three…WH, Senate and House…then the wealth tax could be done, along with many other initiatives.

  37. chris mcmenemy says:

    It’s very simple . Capital gains should be taxed like income … if u cash out of u brokage account that counts as income . U can right off deposits against ur cash outs but it just needs to be taxed just like income

  38. Christine Wood says:

    I like the wealth tax better too. It helps fight against money laundering and it’s much more stable revenue.

  39. Dexter Washington says:

    Warren wealth tax is the greatest & most important policy in 2020 and probably last 30 years. It is vital for fixing wealth inequality the single biggest issue along with climate, in the game

  40. Dexter Washington says:

    You can move untaxed un realized wealth out of the country does not work

  41. Andre Calvit says:

    it was Candace Owens who was supposed to interview

  42. Jeremy Paton says:

    The advantage of the capital gains tax to the wealth tax is the administrative cost. Capital gains is pretty straightforward to tax – you find how much someone bought an assets for, how much they sold it for, and tax the difference. For the wealth tax, you have to value all of the assets every time you want to tax. This makes it much more difficult to administer, and creates all sorts of problems when dealing with high-value assets that aren’t necessarily on the market (art, property) or assets that have volatile value (stocks).

  43. Joseph Hermanowski says:

    We should have a carbon tax

  44. Warner Robins says:

    Senator Warren is who I want to get nomination but I think instead of 50 million it should be 15 million. Ok I make $18,000 a year so 1 million seems like a lot but it's probably just up middle class.

  45. Gaetano Tarantino says:

    How about this, the wealth that is not taxed is the product of one's age and four times the median wage then adjusted to current inflation. So basically you're still allowed not to be taxed on a disproportionate amount of wealth(by current median wage it would allow a 20 year old to own 2 million dollars in assets and still not be taxed on that), everything over that is taxed progressively. But, and this is a big but, first car, first house(meaning the one you live in), everything that one needs for personal use and basic need doesn't count to that total, anything beyond the first of that counts tho, so real estate hustlers get fucked over real bad and ate incentivised to sell the property, flooding the market and lowering the value, consequencially lowering the tax they'd have to pay. This means the wealth distribution has an inherited negative feedback loop against the concentration of wealth, wealth tends to concentration in modern society, so this leaves the option for an equilibrium were, still allowing the concentration of wealth that Americans really like, but disincentivising it in favour of a more humane distribution.

  46. JB JG says:

    I agree with the caller. Way too easy to avoid capital gains for the wealthy.

  47. It's e.n. says:

    It was probably Gavin mccinnes

  48. Karma Fride says:

    I am so glad the caller called about taxes. I would like to know the down fall of just taxing everyone 10% on what they earn. There would be no more tax breaks for the churches, no more inheritance tax no need to impose an unfair tax for the super rich. No more child credit It would be the same for everyone. 10% of earned income. Now on the inheritance tax if mom left you a house you kept it as a house then no tax. If you sold the house than you were taxed. Mom gave you the house not money. There would be no tax breaks eliminating tax loop holes. If a company wished to save on paying taxes they would put the money back into the company or raises to the employees. Many years ago Ross Perot had this idea and I recall that the numbers shown at the time we would, as a nation have more money and less debt. No one ever takes the time to explain to me why a tax for everyone equal would not work. Married couples that have two working partners do this and it seems to work fair for everyone.

  49. collab. rec says:

    WHaAT? Abusive to Pat?
    Hold me back bro!

  50. rogb rogb says:

    Don't just gradually RAISE the Social Security tax ceiling, like they have been doing.
    REMOVE the tax ceiling, so that money ABOVE $132,900/yr. will be taxed too!
    We get scare talk about Social Security going broke- from conservatives of both parties,
    but according to the Congressional Budget Office in 2010, REMOVING the tax ceiling, so the rich pay their fair share- would make Social Security solvent INDEFINITELY!
    (And It wouldn't hurt to greatly reduce the military budget, which the "Democrats" just voted for along with the Repugnants.)

  51. Phoenixdark1 says:

    Um… gonna need that story, my man.

  52. Barbara Lindhjem says:

    Ah….stating the bleeding bloody obvious.

  53. William Grout says:

    Transaction tax on every move of money. Those with more money to move, pay more tax. Those at the low end don't even see it. Similar to the fee banks charge for every credit card transaction. It would hit every buy and sell of stock also.

  54. Gaetano Tarantino says:

    we should keep in mind that a wealth tax without severe rent control does absolutely nothing: if people are still allowed to skyrocket the price of rent, any wage increase or tax on wealth does nothing, because the wealthy can always charge more rent to make up for the increased tax and THEIR taxes get payed by the TENANTS in their property, in the end if you don't directly put your hand on the most common mechanism of value extraction, namely rent, the ones who will pay for it won't be the wealthy, it will end up being the working class with higher rents, and yes even businesses which suffer from already 10x the rent than regular housing tenants per square foot.
    give people direct tax credit from paying rent and take that tax credit by taxing an equal amount on the rent extracted, on top of taxing wealth, this is one way, another way would be to track how much landlords have gained over the years in rent and how much people have paid in rent over the years and incentivise transfer of property in case of matching payment, aka don't let the rent that people pay go to waste but build up into a theoretical fund that will guarantee them housing once it reaches a certain threshold, and incentivise the landlords and (most probably) real estate hustlers who've made money with the system to give that housing to those people, like, I don't know, taxing the accumulated rent received and allowing them to write off part of if by giving an appropriate amount to the people who've paid rent for 20+ years of their life, money that if it wasn't spent on rent would have afforded them a decent house.
    again a policy that doesn't address how wealthy people make their money and acts to balance that in favor of basically the majority of people won't do enough to change the living standards in the country. and to all of you who love capitalism, adam smith heavily criticised rent as a leech on businesses, if y'all are serious about this capitalism thing, rent abolition should be a no brainer

  55. Mellowcanuck says:

    Here is what you do. You have a general consumption tax. 5-7% on every dollar. EVERY cent goes to paying down the debt and you provide refunds to the lower class and middle classes. That way the more you consume the more you pay. Canada sorted it self out in the early 90s with a tax and started generating surpluses. It was HATED and still is….but four governments later its still here.

    Every business, every citizen pays it. Every missile bought and sold….taxed. Every tank…taxed.

  56. Marc Ruffalo says:

    The problem with a wealth tax is that it disincentives capital Investment in our country. Would end up being a net negative. The primary issue is that capital is global, while taxes are national.

  57. pax und peace says:

    Raising the tax for the upper tax brackets above 160,726 $ a year for single filers. They still got approximately 127,000 $ for there own.

  58. Coconut219 says:

    Don't even get me started on how completely broken they way 'investment' works.
    We have such huge inflation problems because all anyone cares about is playing the game called "lets make the numbers go up" and not the actual long-term economic implications.

  59. mark tenenbaum says:

    This is me!! Thanks for taking my call David!

  60. C says:

    Didn't know the Pakman show was such a hotbed for young Stalinist revolutionaries.

  61. mick mccrory says:

    Both.

  62. Simon Crow says:

    Wasn't hederitary structural power why we fought a revolution?

  63. barberwinning says:

    Three income types : earned, capital gains, and passive. Earned is hourly wage. Capital gains is income from profits. Passive income is income from rental property or income of that nature. Passive income (cash flow income)
    Capital gains (profit income)
    Earned income (hourly wage/salary income)

  64. Andrew Barnett says:

    Increasing capital gains effects waaaaaayyyyyy more people than a wealth tax will. Increasing the capital gains tax is a tax increase for a very large number of Americans. Is this good? Is this bad? I'm not sure.

  65. Empurress says:

    Wealth of %100 of all money over 1 Billion, makes total sense.
    Progressive capital gains taxes over 1 million also makes sense.
    *Tax breaks apply.
    Tax organized churches too, at these same rates.

  66. Bob D says:

    Because the principal role of tax is to remove money from the money supply, a wealth tax makes perfect sense.

  67. Justin W. Burgess says:

    rO

  68. Edward Siegel says:

    In monetary operations there are stocks and there are flows. Wealth is a stock, income from ANY source is a flow. They would be taxed for different reasons. The simplest means of wealth tax is negative interest on treasuries, which requires nothing from congress. All income from any source should be treated the same. Unspent income and income spent outside the US economy should be heavily and progressively taxed. #LearnMMT and see why this is true. http://neweconomicperspectives.org/modern-monetary-theory-primer.html

  69. NinjaSheep says:

    A wealth tax makes more sense from an incentives standpoint too depending on what assets are covered. A wealth tax would incentivize the wealthy putting money back into the economy and spending while capital gains has the opposite effect. Albeit to a small degree for both.

  70. Cameron Lafreniere says:

    Dave in Narragansett, good stuff! Hope you enjoyed the trip

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