Allison Schrager

Yeah, I'm good.

Yeah, I'm good.

Allison Schrager. I'm a senior fellow at the Manhattan Institute and columnist at Bloomberg Opinion.

Allison Schrager. I'm a senior fellow at the Manhattan Institute and columnist at Bloomberg Opinion.

Yes. I like how you put think tank in quotes.

Yes. I like how you put think tank in quotes.

Yeah, you know, I do spend a lot of time thinking, which makes me feel like I don't work that hard because the amount of hours in a day I'm actually doing something like writing or doing things like this is actually minimal, but I do think a lot.

Yeah, you know, I do spend a lot of time thinking, which makes me feel like I don't work that hard because the amount of hours in a day I'm actually doing something like writing or doing things like this is actually minimal, but I do think a lot.

I agree they should be paying more in taxes. Okay. I'm not against that idea. I just, how you structure your tax system is important to me. In a perfect world, I wouldn't think anyone should pay any tax, but the fact is we do need a functioning government, and we've committed to a lot of things that people are counting on, and we need money.

I agree they should be paying more in taxes. Okay. I'm not against that idea. I just, how you structure your tax system is important to me. In a perfect world, I wouldn't think anyone should pay any tax, but the fact is we do need a functioning government, and we've committed to a lot of things that people are counting on, and we need money.

And everyone's going to have to pay more taxes, and they have more money, so they should pay more.

And everyone's going to have to pay more taxes, and they have more money, so they should pay more.

I don't agree with taxing unrealized gains. There are credible economists who think differently. This is a conversation we should have, but like, I think it's just impractical. And the ability to collect a tax you levy is actually very important and it's important consideration. First of all, it's very hard to tax wealth because it's really hard to put a value on wealth.

I don't agree with taxing unrealized gains. There are credible economists who think differently. This is a conversation we should have, but like, I think it's just impractical. And the ability to collect a tax you levy is actually very important and it's important consideration. First of all, it's very hard to tax wealth because it's really hard to put a value on wealth.

When you tax a capital gain, I mean, there's a financial transaction you can observe and you can tax that.

When you tax a capital gain, I mean, there's a financial transaction you can observe and you can tax that.

Exactly. It's like taxing income. You know, you observe your income and then you pay a tax on it. And this makes collecting it easier. But how do you measure an unrealized gain? So is it just like December 31st, the value of your portfolio and then what you pay the tax on April 15th? What do you do if there's a loss? Do they get a tax credit?

Exactly. It's like taxing income. You know, you observe your income and then you pay a tax on it. And this makes collecting it easier. But how do you measure an unrealized gain? So is it just like December 31st, the value of your portfolio and then what you pay the tax on April 15th? What do you do if there's a loss? Do they get a tax credit?

which is when you buy an asset, when you sell it, you pay tax based on what the price was when you bought it versus what you were when you sold it. But if you die and leave it to your heirs, it's not based on when you bought it.

which is when you buy an asset, when you sell it, you pay tax based on what the price was when you bought it versus what you were when you sold it. But if you die and leave it to your heirs, it's not based on when you bought it.

So suppose you start a company. Suppose you're Jeff Bezos and you kept Amazon private and he died tomorrow.

So suppose you start a company. Suppose you're Jeff Bezos and you kept Amazon private and he died tomorrow.

And he left this private company to his children or even if it was public and they sold all their shares, they wouldn't pay a capital gains tax on it.

And he left this private company to his children or even if it was public and they sold all their shares, they wouldn't pay a capital gains tax on it.

Yeah. And that actually is a distortion that does encourage people to never sell their assets because it's better just to leave it to your heirs.

Yeah. And that actually is a distortion that does encourage people to never sell their assets because it's better just to leave it to your heirs.

Exactly.

Exactly.

Step-up in basis is something economists love to talk about getting rid of. But, you know, you always get, like, the farmer who has the family farm, right? And he leaves the family farm to his kids, and all of a sudden they have this huge tax bill.

Step-up in basis is something economists love to talk about getting rid of. But, you know, you always get, like, the farmer who has the family farm, right? And he leaves the family farm to his kids, and all of a sudden they have this huge tax bill.

That's very compelling for people who aren't economists.

That's very compelling for people who aren't economists.

I have no idea because I don't see any political will. I think everyone's looking for we can just take this money from rich people, but the fact is we're probably all going to have to pay more taxes.

I have no idea because I don't see any political will. I think everyone's looking for we can just take this money from rich people, but the fact is we're probably all going to have to pay more taxes.

They don't have enough money.

They don't have enough money.

They got a lot of money, but not enough to pay for our debt and our functioning government moving forward.

They got a lot of money, but not enough to pay for our debt and our functioning government moving forward.

Yeah. You know, no one really wants to hear that.

Yeah. You know, no one really wants to hear that.

Yeah, I'm good.

Allison Schrager. I'm a senior fellow at the Manhattan Institute and columnist at Bloomberg Opinion.

Yes. I like how you put think tank in quotes.

Yeah, you know, I do spend a lot of time thinking, which makes me feel like I don't work that hard because the amount of hours in a day I'm actually doing something like writing or doing things like this is actually minimal, but I do think a lot.

I agree they should be paying more in taxes. Okay. I'm not against that idea. I just, how you structure your tax system is important to me. In a perfect world, I wouldn't think anyone should pay any tax, but the fact is we do need a functioning government, and we've committed to a lot of things that people are counting on, and we need money.

And everyone's going to have to pay more taxes, and they have more money, so they should pay more.

I don't agree with taxing unrealized gains. There are credible economists who think differently. This is a conversation we should have, but like, I think it's just impractical. And the ability to collect a tax you levy is actually very important and it's important consideration. First of all, it's very hard to tax wealth because it's really hard to put a value on wealth.

When you tax a capital gain, I mean, there's a financial transaction you can observe and you can tax that.

Exactly. It's like taxing income. You know, you observe your income and then you pay a tax on it. And this makes collecting it easier. But how do you measure an unrealized gain? So is it just like December 31st, the value of your portfolio and then what you pay the tax on April 15th? What do you do if there's a loss? Do they get a tax credit?

which is when you buy an asset, when you sell it, you pay tax based on what the price was when you bought it versus what you were when you sold it. But if you die and leave it to your heirs, it's not based on when you bought it.

So suppose you start a company. Suppose you're Jeff Bezos and you kept Amazon private and he died tomorrow.

And he left this private company to his children or even if it was public and they sold all their shares, they wouldn't pay a capital gains tax on it.

Yeah. And that actually is a distortion that does encourage people to never sell their assets because it's better just to leave it to your heirs.

Exactly.

Step-up in basis is something economists love to talk about getting rid of. But, you know, you always get, like, the farmer who has the family farm, right? And he leaves the family farm to his kids, and all of a sudden they have this huge tax bill.

That's very compelling for people who aren't economists.

I have no idea because I don't see any political will. I think everyone's looking for we can just take this money from rich people, but the fact is we're probably all going to have to pay more taxes.

They don't have enough money.

They got a lot of money, but not enough to pay for our debt and our functioning government moving forward.

Yeah. You know, no one really wants to hear that.