this post was submitted on 15 Oct 2023
355 points (98.6% liked)

News

23644 readers
4525 users here now

Welcome to the News community!

Rules:

1. Be civil


Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.


2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.


Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.


3. No bots, spam or self-promotion.


Only approved bots, which follow the guidelines for bots set by the instance, are allowed.


4. Post titles should be the same as the article used as source.


Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.


5. Only recent news is allowed.


Posts must be news from the most recent 30 days.


6. All posts must be news articles.


No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.


7. No duplicate posts.


If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.


8. Misinformation is prohibited.


Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.


9. No link shorteners.


The auto mod will contact you if a link shortener is detected, please delete your post if they are right.


10. Don't copy entire article in your post body


For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.

founded 2 years ago
MODERATORS
 

Charles and Kathleen Moore are about to have their day in the Supreme Court over a $15,000 tax bill they contend is unconstitutional.

The couple from Redmond, Washington, claim they had to pay the money because of their investment in an Indian company from which, as Charles Moore, 62, said in a sworn statement, they “have never received a distribution, dividend, or other payment.”

But significant parts of the story they have told to reach this point seem at odds with public records.

The Moores are the public face of a high court case backed by business and conservative political interests that could call into question other parts of the U.S. tax code and rule out a much-discussed but never-enacted tax on wealth. The case is set for arguments on Dec. 5.

you are viewing a single comment's thread
view the rest of the comments
[–] dogslayeggs@lemmy.world 19 points 1 year ago (2 children)

Just because they "have never received a distribution, dividend, or other payment" doesn't mean they haven't benefited from it. The way truly rich people get their money isn't by a simple paycheck or even by selling stock or getting dividends (though this is part of it). They own a shitload of "stuff" and can leverage that "stuff" to get loans to pay for other things. Banks will give preferential loans to a person who has a billion in stock, since they are confident that person will be able to pay it back. The loans aren't considered income, so they aren't taxed.

Much like leveraging your home equity for a loan to pay for whatever, these people can leverage owning that stock to get a loan to pay for whatever. And if we have to pay property taxes on homes we own to ensure the homes are safe (roads, police, fire dept, etc), then I can see the validity of having a tax on stocks we own to pay for the resources to ensure those stocks are safe (regulators, safe computer networks, insurance, etc).

[–] Kethal@lemmy.world 8 points 1 year ago* (last edited 1 year ago) (1 children)

I feel like this is a big component of inflation that no one talks about. The stocks they use as collateral aren't worth what they claim, since any attempt to sell all of those stocks would immediately drastically decrease their value. The loans then act as a sort of money press, for value that doesn't really exist. That then drives up prices.

[–] Bakkoda@sh.itjust.works 2 points 1 year ago

The stock prices are often artificially inflated through buybacks as well. It's a brilliant system and I can't possibly see how it will end poorly for everyone but those responsible for it. /S

[–] Skyrmir@lemmy.world 1 points 1 year ago (1 children)

They need to start taxing collateral over a few hundred thousand as income. It's an easy loophole to close, but of course it won't be.

[–] LufyCZ@lemmy.world 2 points 1 year ago (1 children)

You can't tax something that isn't income as income.

Create a new tax structure? Sure, could be a mandatory interest on the loan that goes to the IRS or something.

But not income. It's not income.

[–] Skyrmir@lemmy.world 2 points 1 year ago (1 children)

Being used as collateral to obtain preferential rates, it's being spent as income to make interest payments that are deferred due to the security of the collateral. A thing of value being used to pay for an exchange is a thing that has been obtained as income.

[–] LufyCZ@lemmy.world 0 points 1 year ago

The fact that it's being spent as income doesn't mean it is income.

A company has revenue, which they use to pay people with. It's money they use to get things. But it's not income.

It makes no sense to extend the definition of income to cover money that you personally think works as income or whatever. However, objectively, it doesn't.

As I said, no issue creating a new structure for loaned money, but including it under income is stupid.