To: TimF who wrote (14590 ) 6/10/2002 1:35:19 PM From: jttmab Read Replies (1) | Respond to Until the house, or stock, or land, or whatever is actually sold there is no actual realized profit. I don't think phantom paper profits should be taxed. I don't even consider it "wealth acquired through tax deferred mechanisms". The wealth was acquired through the normal operation of the stock or housing or whatever markets and since wealth is not taxed there is no deferral. A deferral would be when an actual realized profit is made but for some reason the tax consequences are delayed. But a flatter simpler tax system would be fairer in my opinion and would be more efficient at raising revenue with less distortion of the economy and less intrusiveness in to people's lives. It would also probably result in lower compliance costs. It would be more equitable and it would create a greater possibility of more people accumulating wealth. I think the problem of lower income people not being able to afford to pay an equal tax rate could be covered by the combination of a larger personal exemption, and a reduction in the size of government which would enable lower tax rates.
