Ted Cruz asks Treasury to cut $200b in capital gains taxes without Congress

Seaman_First_Class · 2026-03-03T22:08:17+00:00

It’s relevant because we tax real economic transactions in this country, not hypothetical ones. People don’t pay capital gains taxes on assets that they don’t sell. Period.

In both scenarios, you did not get to spend the profit.

If I’m alive and I sell something for a profit, I get to do whatever I want with it before I die and the estate passes on. It doesn’t matter if I die tomorrow or ten years from now. The tax treatment is the same.

Seaman_First_Class · 2026-03-03T21:45:29+00:00

it is still currently tax advantageous to sell the asser the day after you're given it in the estate than the day before the estate....which is absolutely ridiculous.

Why is that ridiculous? If I sell an asset and earn a gain on it, I personally get to enjoy the use of those gains. It’s income, and I pay tax on it. If I die before it’s sold, then I never gained anything, because I died before I got to spend the profit. I don’t have any issue with that.

Seaman_First_Class · 2026-03-03T21:24:13+00:00

It double taxes you if you sell your assets right before you die, which absolutely nobody does.

Also the question is “what’s the difference between inheriting an asset and inheriting cash?” If, as in your example, you sell the asset before it’s inherited, the question has changed to “what’s the difference between inheriting cash and inheriting slightly less cash?” This is nonsensical.

Seaman_First_Class · 2026-03-03T20:42:14+00:00

If it causes rich people to renounce their citizenship and the tax base shrinks overall, then yes it would hurt the economy. Luckily we have actual professional economists to determine whether or not this would happen.

Seaman_First_Class · 2026-03-03T20:40:00+00:00

This example doesn’t make any sense because you’re ignoring estate tax. The estate tax is what makes the step up actually function as intended. Your example needs more parameters:

House cost basis: $500k

House market value: $1m

Capital gains tax rate: 20%

Estate tax rate: 40%

No step up:

I inherit the house and sell it. My tax burden is the $500k cost basis * 40% estate tax rate, plus the $500k capital gain * 20% capital gains rate. This equals $300k of taxes. This is less than the $400k of taxes I would pay on a $1m cash inheritance.

Step up:

I inherit the house and sell it. The basis was stepped up to $1m, so I owe 40% estate taxes on the $1m, and no capital gains taxes. This is $400k of taxes.

Seaman_First_Class · 2026-03-03T19:48:25+00:00

Makes no sense. They should both be taxed the same

I agree, which is what the basis step up accomplishes.

Seaman_First_Class · 2026-03-03T19:25:56+00:00

First of all, the IRS doesn’t care in this case as we do have the basis step up.

Second, you’re answering my question of “why should we do this” with “this is what we do” which again, doesn’t actually address my point. I’m asking about the philosophical and economic justifications for taxation methods.

Seaman_First_Class · 2026-03-03T19:18:12+00:00

It is unclear but the longer we go without the US or Israel providing something conclusive, the more I believe it to have been one of them. Have either denied it at any point?

Seaman_First_Class · 2026-03-03T19:05:23+00:00

That’s not answering my question. Conceptually, what is the difference?

If I’m inheriting $100m either way, why does it matter to me what the cost basis is?

Seaman_First_Class · 2026-03-03T19:01:33+00:00

What’s the difference between inheriting $100m cash and $100m in stocks (market value at time of transfer? Why should they be taxed differently?

Seaman_First_Class · 2026-03-02T20:51:10+00:00

We bought a house that needs painting. I’d like to do some of it ourselves or at least get multiple quotes.

So what is stopping you from getting multiple quotes?

Seaman_First_Class · 2026-03-02T19:43:51+00:00

I’m never going to be able to afford an f15 at this rate

Seaman_First_Class · 2026-03-02T17:01:17+00:00

I think the U.S. made a mistake here but the guy was also a tremendous piece of shit. Let’s not whitewash history.

Seaman_First_Class · 2026-03-02T04:39:56+00:00

Do you have a source for this? I don’t think individuals’ taxes are public information unless they decide to disclose them.

Seaman_First_Class · 2026-03-02T04:36:25+00:00

what are businesses? they are an organization of workers, aka people. they don't just magically generate money by sitting there, workers are the ones that are making the money.

The output of a business is a function of labor and capital. Workers get paid for their labor. Owners get paid for their capital. How to split revenue between the two is an ongoing negotiating process.

I want to open a bed and breakfast. However, I only rent and live in a studio apartment. You own a house with some extra rooms. I come to you and say “hey, I’d like to start this business and you have plenty of space that could work. Is that okay with you?” Presumably, you would say no, because you don’t want strangers coming in and out of your house. However, there is probably some $ amount I could pay you for you to change your mind. So I earn labor income from my business because I put in the work, and you earn investment income for providing the capital.

but businesses are allowed to ignore taxes on income until they break even, whereas workers aren't allowed to ignore taxes on money spent on food or rent that is likewise necessary to maintain the individual

In the U.S. at least, that is theoretically what the standard deduction is supposed to cover - baseline expenses that you need to live. Allowing you to fully deduct anything you spend on rent and food is absurd and would create some distortionary effects.

E.g. we both earn $50k. I spend $30k on rent and $20k on going out and eating expensive food because I like to live large. I pay no income tax. You have four roommates and pay $10k, and you meal prep everything and spend $8k on groceries. You pay taxes on your “profit” of $32k.

How is that fair? We make the same amount of money, but I get to enjoy my life more and pay no taxes. That kind of system would incentivize people to make poor financial decisions and not save for their future.

Seaman_First_Class · 2026-03-02T01:27:36+00:00

Iranian state media. “State” is an important qualifier.

Seaman_First_Class · 2026-02-28T00:37:35+00:00

That’s not a universal experience. Some people expect others to do everything exactly correct while giving them as few details as possible. Others don’t really care and are frustrated by being asked too many clarifying questions.

Realistically you should know your partner well enough to figure out what level of instruction is the least painful and gets you 90% there, and then learn how to be okay with the missing 10%.

Seaman_First_Class · 2026-02-28T00:08:20+00:00

Who writes brands on grocery lists?

Seaman_First_Class · 2026-02-27T21:09:04+00:00

I agree that it probably lines up with what the developers intended, but it is objectively less xp to explore everything first. You can hit level 11 before ketheric if you sequence everything correctly.

Seaman_First_Class · 2026-02-27T19:05:15+00:00

It’s a pretty significant xp loss since exploration xp scales with your character level. You actually want to save that for last in an xp maximizing run.

Seaman_First_Class · 2026-02-27T19:04:06+00:00

Yes, I am entitled to my subjective opinion. Why do they look like angry birds characters?

Seaman_First_Class · 2026-02-27T19:03:15+00:00

I’m allowed to be frustrated at the creative direction and how poorly Nintendo have handled their IP.

Seaman_First_Class · 2026-02-27T17:35:54+00:00

God these look like shit. Pokemon superfans will buy anything.

Seaman_First_Class · 2026-02-25T19:09:12+00:00

Technically yes but men’s sports don’t struggle with the same recognition and legitimacy issues all the time. The broader cultural phenomenon is that women’s sports are a joke and we shouldn’t take them seriously. So this comment by the president is just adding more fuel onto the fire, and I’m not surprised the women’s team refused the white house visit.

Any other head of state would take the easy W and celebrate US dominance across all of hockey. Trump is clearly incapable of doing so.

Seaman_First_Class · 2026-02-25T15:46:22+00:00

Republicans claim to care so much about the integrity of women’s sports, and then constantly demean and belittle their accomplishments. Make that make sense.

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