Wealth Taxes Coming Soon To A Country Near You: Asset confiscation, income taxation or something else?

<p>November 12, 2020 - Participants Include:</p> <p> </p> <p>John Richardson - <a href='http://www.twitter.com/expatriationlaw'>@ExpatriationLaw</a></p> <p>Jimmy Sexton - <a href='http://www.twitter.com/jimmysextonllm'>@JimmySextonLLM</a></p> <p>It is becoming clear that the United States is gradually moving toward a tax system that includes taxation based on non-realization events. In other words, taxes may be owing even when there is no income.</p> <p>Examples include (but are not limited to): the Subpart F regime (particularly the<a href='http://citizenshipsolutions.ca/?s=transition+tax'> transition tax and GILTI</a>) and the <a href='http://citizenshipsolutions.ca/2015/04/01/renouncing-us-citizenship-how-the-s-877a-exit-tax-may-apply-to-your-canadian-assets-5-parts/'>S. 877A Exit Tax Regime</a>. The <a href='http://citizenshipsolutions.ca/2014/02/06/pfic-taxation-and-americans-abroad/'>PFIC</a> regime creates artificial income based on a fictional charge on tax deferral.</p> <p>The recent Democratic Party nomination process introduced wealth taxes into the vocabulary of taxation. In particular, Elizabeth Warren campaigned on a platform of wealth taxation. In the case of a wealth tax there is no realization whatsoever. The tax is based ONLY on your owning an asset.</p> <p>Although it is unlikely that a wealth tax will become a reality soon. But, it is coming. In fact, I think it would be appropriate to call the first version of the Wealth Tax: "The Senator Elizabeth Warren Wealth Tax".</p> <p>On November 12, 2020 Jimmy Sexton and I discussed the nature of wealth taxes.</p> <p> </p>