The Wealthiest Americans Pay Very Little Taxes

Billionaire's Row, NYC

Pro Publica ran an article on how those at the very top of the income distribution pay very little in taxes. While I agree that it is a problem that the wealthiest individuals pay very little in the way of tax, I see what is presented as a problem in the article, namely unrealized gains, as very problematic as a potential tax basis.

The reasons are pretty obvious to us in crypto who hold low-liquidity assets. Our unrealized gains could be very hard to realize leaving us in deep trouble when the tax bill comes. Inheritance taxes can be quite problematic for this very reason if the inherited property is hard to even properly evaluate let alone sell.

And even if unrealized gains would be considered taxable, the ultra-rich can resort to jurisdictional agility sidestep the issue. A international 15% minimum corporate tax backed by G7 finance ministers is one way to try and get multinational mega corporations to pay their share.

As a holder of crypto assets, I would prefer tax rules that are fair and make it simple and straightforward to calculate what I owe. I don't mind taxes because I know they're inevitable in one form or another. But what I hate is lack of clarity or difficulty of calculating what I owe.

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