Paying taxes on what you no longer have

Naive, but appealing one dimensional, short term thinking is scary if not dangerous, and this is a good example.

Yes, the value of Walmart shares have increased since January, from $118.94 to $142.83 on September 4th. However, between September 1 and September 4 Walmart value dropped by $5.00 a share.

Time to tax billionaires? Tax fairness is taxing the paper growth in investments?

This reminds me of when I was negotiating a labor contract many years ago. The subject was the cost of group life insurance. Looking at documents we had provided, the union saw that the previous year the company had received a substantial dividend on the group policy. It felt employees should share in the dividend and their share of the premium should be reduced. The union was looking at one side of the equation.

My position was simple. I would agree to the sharing requested if the union would agree to also sharing the additional costs in the years there was a shortfall which was substantial and just as often as dividends. The variable was the claim experience of the group of 18,000. Once understood the matter was dropped.

Source: Macrotrends S&P 500 history

Politicians, indeed all progressives, have an inability to grasp the big picture, to consider consequences. They are willing to initiate ongoing (mostly permanent) programs with fixed and growing costs funded by sources that are not fixed or even stable and which often decline. One only need look at today’s major spending programs for examples.

7 comments

  1. Bernie Sanders like all progressives are idiots. If you raise Walmart”s taxes or the Walton’s family taxes, they will just raise the price of the goods that they sell to make up the loss of paying the higher taxes. So Walmart customers will pay for the tax increase. and be in worse shape, than if they just paid their out of pocket medical costs. I spend way more each year at Walmart than I do in out of pocket medical costs.

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  2. This is like demanding that you pay property taxes on the reality listing price every day. Not what you can actually get for your house when you do sell it. Over the long, yes your house should be worth more but I know people who bought just before the house bubble crash and are still under water. What if you own a place in Portland, OR. Do you think that you’ll get what you paid for it? Your house went up $10k yesterday, we want to tax you for that $10k, due tomorrow. Riot in town and your house loses $100k in value, do you get a tax refund? No, the government already spent that.

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    1. Where do you find that info? Undocumented immigrants aren’t eligible to buy Marketplace health coverage, or for premium tax credits and other savings on Marketplace plans. Some state allow coverage for children and pregnant women.

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      1. Question…I’m not sure if you’re asking about the same group of people…you’re asking about “undocumented immigrants” and I’m commenting on “illegal aliens” ?

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      2. They are interchangeable terms. It’s a person is not in the US complying with immigration laws they are here illegally and undocumented.

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      3. Thank you for the clarification …back to my original comment…I remember being required to prove health insurance coverage or be fined on my tax filings under the Obama administration…but illegal aliens were offered medical care with my tax dollars with no such requirements…I fail to see the logic in this other than to buy future voters for the democrats.

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