Allison Schrager

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.

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?

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.

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.

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.

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.

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.