Joe Manchin swings at Biden's billionaire tax, saying the superrich can't be taxed on 'things you do

[muriel_volestrangler]

39. More detail; this also raises the top rate on realized gains to 39.6%, also payable on inheritance

The yearly 20% tax on unrealized gains is treated as a prepayment; if the amount payable when finally realized (on a single asset, or the whole wealth? Not sure) is lower, thee difference is refunded.

Taxpayers subject to the new minimum tax could elect to pay their first-year minimum tax liability in nine equal, annual installments. In subsequent years, taxpayers could elect to pay the annual minimum tax for the year in five equal annual installments.

The proposal recognizes that asset values can fluctuate and reconciles any excess payments on unrealized appreciation when assets are transferred in a taxable disposition. If the ultimate tax due on asset dispositions is less than the owners’ prepayments and credits with respect to the minimum tax, taxpayers will receive refunds of their excess payments and unused credits.
...
If the proposed change is enacted, individuals' transfers of appreciated property by gift or upon death would be taxable events. Tax would be due on the difference between the property’s tax basis and its fair market value. The new rule also would apply to transfers by noncorporate entities of property which has not been subject to tax on its appreciation since December 31, 1939. Transfers to and from trusts (other than grantor trusts) also would be taxable and transfers of partial interests in appreciated property generally would result in a tax proportional to the interest.
...
In addition, for taxpayers whose taxable income exceeds $1 million, the tax rate applicable to long-term capital gains and qualifying dividends would increase from 20% to 39.6 % under the proposed revisions. If such a taxpayer also is subject to the 3.8% net investment income tax, the total rate would equal 43.4%.

https://www.investopedia.com/biden-billionaires-minimum-tax-5223904

Still not clear what would happen if an asset went up and down repeatedly over several years - can the years with a drop in value offset the prepayments in the rising years (eg rise by $100m one year, then drop by $100m, then rise by $100m, then drop by $100m)? Or does the person just have to wait until the real sale to claim anything they've overpaid?

But setting the top rate for capital gains equal to the proper income tax rate, and saying death is a taxable event, close some of the loopholes currently used. And the advantage of taxing unrealized gains is the state gets the tax now, rather than when someone finally dies (by which time Republicans might have cancelled the idea of making it a taxable event).