Here’s the smart way to tax the rich

ProPublica muddied a basic distinction, which, properly understood, actually fortifies the case against a wealth tax. The story likened on-paper asset price appreciation with actual cash income, then lamented that the two aren’t taxed at the same rate. However, the income tax system never required people to pay taxes on the appreciation of their assets, until they sold them and “realized” capital gains. For good reason: ProPublica’s logic implies that, when the stock market goes down, Elon Musk, whose billions are tied up in shares of Tesla, should get a tax cut.

Source: WP