Wealth Taxes Coming Soon To A Country Near You: Asset confiscation, income taxation or something else?

November 12, 2020 - Participants Include:

 

John Richardson - @ExpatriationLaw

Jimmy Sexton - @JimmySextonLLM

It is becoming clear that the United States is gradually moving toward a tax system that includes taxation based on non-realization events. In other words, taxes may be owing even when there is no income.

Examples include (but are not limited to): the Subpart F regime (particularly the transition tax and GILTI) and the S. 877A Exit Tax Regime. The PFIC regime creates artificial income based on a fictional charge on tax deferral.

The recent Democratic Party nomination process introduced wealth taxes into the vocabulary of taxation. In particular, Elizabeth Warren campaigned on a platform of wealth taxation. In the case of a wealth tax there is no realization whatsoever. The tax is based ONLY on your owning an asset.

Although it is unlikely that a wealth tax will become a reality soon. But, it is coming. In fact, I think it would be appropriate to call the first version of the Wealth Tax: "The Senator Elizabeth Warren Wealth Tax".

On November 12, 2020 Jimmy Sexton and I discussed the nature of wealth taxes.