Bill Gates debates Alexandria Ocasio-Cortez 'tax the rich' policy


Hmmm? My RRSPs are all mutual funds, which when I start drawing off of them I expect that they would be taxed as capital gains. Is this not true?

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Not even if we model them as an idealized sphere made of milk?

So, the Warren proposal.

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Hmm. Here’s one source (esp. p. 10-15).

The whole California tax code isn’t a point.

Withdrawals from retirement funds are taxed as income. As long as the gains are in a retirement fund, they remain untaxed until you withdraw them. So, for most retirees, capital gains actually don’t play into their tax situation unless they have investments outside their retirement funds. YMMV.

ETA: The proposals made have been to apply marginal rates to capital gains. So even if someone was living off of non-retirement investments, higher rates wouldn’t kick in until those gains were enormous. So the point still stands that no retiree is going to struggle due to the AOC/Warren proposals.


He’s right. If you tried to pay me £30m for a movie, say, you wouldn’t end up paying me. You’d pay the company that I own 100% of. Then I take that money and put it in investments without moving it into my personal system.

For the whole year, that company can pay me $9,999,999.99 in cash, staying under the threshold. Her tax is avoided and I still have the value of most of that £30m.

If you’re saying tax wealth, cool. But how do you do it? Do you say “you pay tax on everything you own”, in which case, OK. If I’ve got 200 shares of a company at $10, do I now have to pay capital gains without selling the shares? How does that work when they take a loss?

Any system she puts in place can and will be gamed. The only solution is to change attitudes toward taxation, which is going to be difficult in the US.


Well, the thing is that part of income inequality IS … income.


Most folks wouldn’t be affected. Anyone even with a million or two for retirement won’t get hit until they withdraw (401k) or not at all (Roth). Both are still majorly below the proposed rate AOC and company have set. In fact, the vast majority would benefit as Medicare and other retirement programs would be given more funding thanks to the massive increase in revenues.


If you know what 110% of it is, it isn’t very well hidden though.

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Which would be taxed at corporate rates. Which they also want to raise.

Which would be taxed at the capital gains rate, which would go up to match the earned income rate.

Which would be taxed at whatever the next lower marginal rate is. They aren’t talking about a single change, here. It wouldn’t jump from 37% to 70%. If you’re changing the highest marginal rate, you change the whole table to prevent exactly this.

The system right now is being gamed. The fact that it will be gamed once it’s changed is a nonfactor in the decision tree for whether to make those changes.


I don’t think you read the link.

Apparently, you didn’t. I read it comprehensively. There’s a whole section on how volatility in PIT leads to higher tax revenue. It’s irregular but always higher than regular income tax alone.

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Such a great nation: The assumption that a college dropout, second rate coder and first rate destroyer of competition knows a lot because the proof is that he’s wealthy.

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