As you said, right now, you only pay taxes on profits at the time stocks are sold. Which means I could gather billions in “wealth” and never cash in, thus never pay a single dollar in taxes.
Suppose we would change how taxes are paid on stock profits. What if you had to pay taxes on yearly profits every year? This way, you can cash out at any time, because the tax is already paid. It would work just like regular income tax. Deductions and losses on the market would still apply.
Just spitballing here.
As you said, right now, you only pay taxes on profits at the time stocks are sold. Which means I could gather billions in “wealth” and never cash in, thus never pay a single dollar in taxes.
Suppose we would change how taxes are paid on stock profits. What if you had to pay taxes on yearly profits every year? This way, you can cash out at any time, because the tax is already paid. It would work just like regular income tax. Deductions and losses on the market would still apply.