NotMAGA wrote:
Are you in a state that doesn't assess real estate taxes Arch?
Where we are in upstate NY, a homeowner with a house assessed at 200,000 will pay between 4k and 6k annually for school, village, town and county taxes on the assessed value of that house. There aren't many homes in this area worth 7 figures, but taxes on one would be unbelievably high.
There's your problem. You live in the Democrat's socialist taxed dream state of NY.
Have you never heard of the standard deduction? Not everyone pays taxes. Some people do sustain losses during a year and therefore don't have taxable income. You can't judge income based on wealth and you can't judge wealth on income. For example, if you win the lottery for a huge amount and take the lump sum you pay taxes on it in the year won. Then you live off of it the rest of your life, maybe, if you are smart enough to not spend it all immediately.
Here's the real problem Government spends too much. The Federal Reserve prints too much money. Inflation hurts everyone, especially fixed incomes. Inflation is just another form of tax. Social Security isn't keeping up with Bidenflation. CA just increased fast food workers' minimum wage to $20/hour. This will cause price increases and unemployment because bleeding-heart liberals are too stupid to understand the ramifications of their stupidiotic policies. And a person on a fixed income such as SSI just lost more spending power. You can't earn enough interest to make up for your losses due to Bidenflation. You've lost money the past couple of years unless you manage to invest in some very speculative high-yield instruments that are also risky.
If you bought Gold at $1000 an ounce and later sold it for over $2000 an ounce, you didn't earn any money. An ounce of gold is an ounce of gold. It sold for more because of inflation and the Federal Reserve's manipulation of the money supply. The government considers this a capital gain even though you have not gained anything, but the government went off the gold standard, so they consider this a taxable gain.
If you bought a house, made no improvements to it whatsoever, and later sold it for more money because inflation has increased the cost of homes, why should you have to pay taxes on the gain? You paid the taxes already on the money you used to buy it with. You didn't really gain anything. The house didn't change. In fact, it should be worth less because everything is older, worn, and been used more. You have also been paying property taxes on it all along.
I don't have to spell everything out for you, do I? You are smart enough to figure some of this out, aren't you? Our tax system is inherently unfair, to both rich and poor alike. Wealth is not static.