The culture where I live considers that paying 0.04% of your worth to live where you want is not worth considering.
It's 5% not four - and it is partially based on unrealized gains
An
unrealized gain happens when something you own goes up in value, but you haven’t sold it.
Example:
- You buy stock for $100 million.
- It grows to $300 million.
- You haven’t sold it.
That $200 million increase is an
unrealized gain — it's “on paper,” not cash in your bank account.
Under current U.S. federal tax law:
- You generally do not pay tax until you sell (realize) the gain.
- Once you sell, you pay capital gains tax.
Under the wealth tax you have to pay 5% of the 300,000,000 worth - 15,000,000 that you have not received as of yet.
We are speaking of the top tier - investors -
They purchase an apartment complex for 10,000,000.00 - spend 2,000,000 getting it ready, pay the taxes involved along with paying tax on the income from the apartments - in five years the property has a value of 25,000,000 - the state will tax you $1,250,000 and give you exactly zero benefits in return.
Go back to Spielberg - his bill will be $355,000,000 and he will receive nothing in return, because he already owns his wealth and pay taxes on it. When he goes to sell his wealth he will be taxed again.
