You bought 100 shares of Zoom stock in Jan 2020 for $75 per share
Ends year at $350 per share but you didn’t sell giving you an unrealized gain $27.5k
Under Kamala’s plan you owe $6,875 in taxes (25% of $27.5k)
But you didn’t sell so you don’t have the cash. you pay taxes out of savings
You continue to hold until August 2024. Finally sell for $60 per share
You LOST $1,500 on the stock PLUS you paid the taxes on the $27.5k of “gains” you never actually received since they evaporated
The initial tax proposal is only targeting $100M+ but that’s just the start. It opens the gates to lower the threshold whenever they choose
Before you know it every person who owns a stock is paying this tax
People stop buying stocks. Companies have less capital to invest into new products and develop technology
Economy tanks. Jobs lost
What a joyful future
Even under the MOST CHARITABLE viewing,
This forces large investors to focus EVEN MORE on short term quarterly success rather than long term company value because they’re going to be forced to sell the stock at tax time anyway.
They’re already doing it, it this is the nail in the coffin that institutional investors will be fully converted to parasites with negative interest in long term value
Naturally, it’s the people who work for these companies who will suffer the consequences of management being forced to bend to this investment demand.
Like everything democrats do, they think they’re punishing one group, but it will massively harm the people. This is what happens when you write laws to punish certain people rather than restrict government intervention in the market
Im wondering of Wall Street wants this to weed out the "homegamers" retail traders that are having better success because of improved trading bots. The institutional traders have been using bots for years 80% plus are bot influenced.. Some of these retail traders are making 1 to 3 k a day and the the brokers might be feeling it. If you look at the movement of the markert from October of last year it seems like its been behaving erratic and the big boys break known structure to shake off the traders trades.