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Lonestarblue

(10,733 posts)
6. Capital gains taxes aren't paid until a stock is sold, so most of them haven't paid anything..
Fri Jun 14, 2024, 05:44 PM
Jun 14

The likelihood is that the stock will be left to heirs who also will pay no capital gain because their basis value will be the price on the date they receive it, not the value when it was purchased. Just another way for the wealthy to pass along valuable assets with no tax obligations. For example, if you inherit $100 million of stock, there is little reason to sell it and pay a tax. Instead, you can use it as collateral and borrow money needed for, say, a $15 million villa in Italy.

Stock buybacks were once illegal. They need to be made so again because they encourage CEOs and wealthy shareholders to use tax breaks to goose stock prices.

Latest Discussions»General Discussion»Robert Reich: after Trump...»Reply #6