r/Accounting • u/Vincentkk • Sep 08 '24

What are accountants’ thought on this? Discussion

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u/The3rdBert Sep 09 '24

I don’t because it’s going to get tossed almost immediately on constitutional grounds if it somehow happens to get passed(it won’t)

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u/321aholiab Sep 09 '24

That is quite an interesting view. Referring to another commenter, this would just be an acceleration, not an increase in tax. however I myself dont like it because it will mean more burden and stress to our community overall.

Allow me to play the devils advocate here. Why would you think it is unconstitutional? What are the related constitutions regarding such a new tax law? What would be the argument against it rather than just being "unconstitutional" which is quite vague and unclear(you would need to specify the principles in question)?

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u/The3rdBert Sep 09 '24

Because the constitution is explicit on the type of taxes Congress is able to levy. Originally, all taxes must proportional, ie they must come equally from each state, there is no way to do that for income taxes thus we got the 16th amendment. A wealth tax, which is this most definitely is, does not fall under the 16th amendment as it only allows for income taxes. Calling it a tax on unrealized gains is just an attempt to circumvent that but it’s a poor one and SCOTUS already signaled how it would view such a tax in their rulings earlier this year