Dow hit 50K. Why I think wealth tax is inevitable in our lifetime

5,515 Views | 61 Replies | Last: 19 days ago by ts5641
Dan Scott
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The market doubles on average every 8-10 years. It took the DOW over 100 years to get 50K and it'll take only 10 years to get the next 50K. In 20 years the DOW will be at 200K. It's kinda wild to think about. Think about the amount of wealth that will be generated in next 20 years.

Those starting with more money in the market will get richer. The guy with $20M will get the same 4X as the guy with $100K. The rich dude will have $80M though but the other guy will have $400K. We're going to have multiple trillionaires in the next 20 years. If market-driven wealth acceleration continues, and capital compounds faster than wages a wealth tax becomes politically inevitable.

Chipotle CEO said our customers make $100K so we can raise prices. And this is a small example why life feels like a never ending hamster wheel for the middle class. As soon as you make more, you get charged more. I felt it living in The Woodlands where there's a huge Woodlands Tax contractors charge.

Economic classes have existed in every civilization, always wealthy, middle, and poor. That alone isn't destabilizing. What matters is mobility and perceived fairness. When we start cutting benefits while there are multiple trillionaires walking around, people will get pissed. You're going to need a lot of new millionaires to be content with what they have.






backintexas2013
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People get pissed because they won't take care of their business and expect daddy government to take over. Government benefits should be slashed. We shouldn't reward moochers and why do you care if someone is a trillionaire? Doesn't impact you.
BadMoonRisin
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It's all fake and bloated money. COVID showed us that. We printed >40% of our money to placate ******ed Karen's and their ****** enablers over a cold virus.
sam callahan
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Your 50,000 in stocks today may be worth 100,000 in 2036. That is a possibility.

Your 100,000 in 2036 will be at best worth what your 50,000 dollars is worth today and likely less. That is a certainty.

So I'm not sure how much true wealth is being created.

But, I believe you are right. A wealth tax is inevitable. Your Roth rules will get changed. Your 401k nest egg is going to be poached.
Sid Farkas
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The precedent for such a tax at the Fed level is a constitutional amendment - ergo, it'll never happen.
techno-ag
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If somebody is richer than you, what's your gut reaction?

A) Be glad for them, seek to find out how they got wealthy and consider if you might be able to do something similar.

Or

B) Hate them, wish them ill, champion confiscatory taxes in hopes of transferring some of their wealth to yourself via government legislation.

If your answer is not A, something is seriously wrong with your values. You might be a communist or at least what Lenin called a "useful idiot."
The left cannot kill the Spirit of Charlie Kirk.
Logos Stick
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Of course they will pass a wealth tax. California is going to pass one this year. The Marxists will also come for the 401ks and IRAs of the middle class. That wealth is mostly owned by whites. It's ripe to be taken and redistributed.
Logos Stick
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Sid Farkas said:

The precedent for such a tax at the Fed level is a constitutional amendment - ergo, it'll never happen.


Or, they will kill the filibuster, put more judges on the SCOTUS who have the IQ of a bug, like Jackson, pass the tax and declare it constitutional.
B-1 83
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A lazy ass AI search showed this:
IRA Asset Allocation in 2024
  • Total Assets: IRAs held $17.0 trillion at year-end 2024, representing 38% of the total U.S. retirement market.
  • Equity Mutual Funds: Of these assets, $3.8 trillion were specifically invested in equity (stock) mutual funds.
  • Mutual Fund Concentration: Roughly 38% to 43% of all IRA assets are held in mutual funds, with the vast majority of those funds being equity-focused.
  • Household Ownership: Approximately 44% of U.S. households(57.9 million) owned an IRA in mid-2024.
Not all wealth/retirement is in the stock market, and when it comes to IRAs, not all of them are Roth. There's still a #@$& ton of taxes being collected on interest and dividends from the non-IRA funds, and the regular IRA tax man cometh. As always, not all wealth is in the market. How would you like to be a farmer with 2000 acres that's been in the family for generations and have to pay additional tax on your sometimes pocket draining "wealth"in addition to property tax? What am I missing?
Being in TexAgs jail changes a man……..no, not really
Squadron7
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As always, the wealth tax will only be for the very rich…until it isn't.
FWTXAg
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Squadron7 said:

As always, the wealth tax will only be for the very rich…until it isn't.


It will be a tax for everyone, excluding the very rich. Just like all of our current taxes.
jeremy
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Whats the answer for the long term?

I still pump money into my 401k, but I also try to build wealth in things that hold value: Land, equipment, etc. Any other ideas how to not get screwed by inflation and/or raiding of our 401k?
backintexas2013
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FWTXAg said:

Squadron7 said:

As always, the wealth tax will only be for the very rich…until it isn't.


It will be a tax for everyone, excluding the very rich. Just like all of our current taxes.


Except the top 1% pay most of the income tax. It's the bottom 50% living free of income tax.
BkYdPitmaster
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techno-ag said:

If somebody is richer than you, what's your gut reaction?

A) Be glad for them, seek to find out how they got wealthy and consider if you might be able to do something similar.

Or

B) Hate them, wish them ill, champion confiscatory taxes in hopes of transferring some of their wealth to yourself via government legislation.

If your answer is not A, something is seriously wrong with your values. You might be a communist or at least what Lenin called a "useful idiot."

A. Unless it's Jimmy Kimmel. Always A. Unless it's Kimmel or ilhan Omar. Always A. For sure.
Backyard Pitmaster
backintexas2013
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Nope always A unless they prove Omar made it through fraud.
JamesPShelley
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FWTXAg said:

Squadron7 said:

As always, the wealth tax will only be for the very rich…until it isn't.


It will be a tax for everyone, excluding the very rich. Just like all of our current taxes.

Or... just read the new book, "How to work the system you voted for".













/S
JWinTX
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We kinda have one possibility to get out of the massive debt we currently have without major economic changes and it's one we really don't want to happen, but it will be legalizing marijuana and other drugs that will get taxed into tomorrow. It will generate revenues, stop costs from incarceration and drug enforcement, as well as being under federal oversight. Again, I don't want this at allbut as society continues to degrade culturally, it'll be next before the confiscate or change IRA/401k rules for the Middle Class.
TRM
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Let's say there is a wealth tax and an owner needs to sell stock to pay their wealth tax. Is there an incentive for someone to pay market value for the stock especially when other owners are competing for the same fixed amount of dollars to pay their wealth tax? What does that do to the stock prices and the DJIA? What happens when foreign investors snap up ownership at discounted rates and don't have to pay a wealth tax on it?
Squadron7
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backintexas2013 said:

FWTXAg said:

Squadron7 said:

As always, the wealth tax will only be for the very rich…until it isn't.


It will be a tax for everyone, excluding the very rich. Just like all of our current taxes.


Except the top 1% pay most of the income tax. It's the bottom 50% living free of income tax.


That, and they don't ever get credit for the amount of other taxes their endeavors cause to be paid indirectly. Figure all of the taxes Apple causes to be paid from their employees paying income taxes to the sales tax at the end.
Matt Hooper
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Wealth is not a zero sum game

Wealth can be created.
Wealth can be destroyed


Hooper Drives the Boat
MaroonStain
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JWinTX said:

We kinda have one possibility to get out of the massive debt we currently have without major economic changes and it's one we really don't want to happen, but it will be legalizing marijuana and other drugs that will get taxed into tomorrow. It will generate revenues, stop costs from incarceration and drug enforcement, as well as being under federal oversight. Again, I don't want this at allbut as society continues to degrade culturally, it'll be next before the confiscate or change IRA/401k rules for the Middle Class.


Legalizing drugs will keep Congress and other governments from spending money that WE don't have?????
Dungeon Crawler Carl
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Quote:

It took the DOW over 100 years to get 50K and it'll take only 10 years to get the next 50K.


Wrong.

Trump hasn't been shy about his goal. He already set the timeframe while he was speaking at Davos in January. He flat out said "Dow 100K". He's not going to let some else take credit for that.


And reiterated it a couple days ago.

Dungeon Crawler Carl
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FWTXAg said:

Squadron7 said:

As always, the wealth tax will only be for the very rich…until it isn't.


It will be a tax for everyone, excluding the very rich. Just like all of our current taxes.


We are going to have a digital currency system implemented soon.

They've already passed all the StableCoin legislation.

The system is ready to go.

It's just going to take a reason to switch from the old industrial age system.

Your tokenized assets will have the wealth taxes incorporated into them.

Annual income taxes will become a thing of the past.

Your taxes will be taken out of every transaction automatically......


FIDO_Ags
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Quote:

why do you care if someone is a trillionaire? Doesn't impact you.


You should care. Why do you think they meet in Davos every year for the WEF?
-you think climate change/carbon credits happened organically?
-you think having windmills all over creation is just the market?
-you think having EVs pimped everywhere and increased CAFE standards is just good stewardship?
-you think AI taking over everything is just the market playing out?
-you think world wide immigration is just people naturally migrating to better conditions?
Logos Stick
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So Trump now has control over the stock market. LoL
Dungeon Crawler Carl
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Logos Stick said:

So Trump now has control over the stock market. LoL


Ask him. Im just posting what he told the world.

sam callahan
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Quote:

Except the top 1% pay most of the income tax.


The top 1% of income earners carry the load. Not the very wealthy.

Of course, we could all just move to Puerto Rico and pay just 4% tax.
infinity ag
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Dan Scott said:

The market doubles on average every 8-10 years. It took the DOW over 100 years to get 50K and it'll take only 10 years to get the next 50K. In 20 years the DOW will be at 200K. It's kinda wild to think about. Think about the amount of wealth that will be generated in next 20 years.



The Dow was at 157 in Jan 1926. It was around 50000 in Jan 2026. That means it is 50000/157 ~ 300 times.
300 times in 100 years which is 7.2% a year compounded.

Going from 50000 to 100000 (another 50000) is just 2X or 200%.

300X vs 2X

You have a LOOONG (maybe about 100 years) way to go to achieve 300X which is for Dow to hit. 15 Million

Don't let the big numbers shock you as only multiples matter.
infinity ag
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This thread is why I say US is moving from a career/job based economy to an investor based economy. Even working 2 jobs doesn't guarantee a good retirement, you have to invest. Even politicians openly boast about it and CEOs fire people just to maintain stock price.

It is all about Wall St now. Which can be good news as you can invest and enjoy your life and let H1Bs slave for you.
Mas89
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Relative was still trying to keep up with the required minimum annual distribution for regular IRA acts. into her 90s. It had become an annual pita and she was paying tax on the distribution. Heirs would probably be in a higher tax bracket if the Ira was eventually inherited. Made sense to cash in the entire Ira, pay the tax all in one year and move on. No more bs and annual broker calls and explanations. One less headache in old age.

Farm/ ranch land taxes are around 2$ per acre per year in Texas. Best investment of all time imo. Stepped up basis at death to heirs.
FWTXAg
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backintexas2013 said:

FWTXAg said:

Squadron7 said:

As always, the wealth tax will only be for the very rich…until it isn't.


It will be a tax for everyone, excluding the very rich. Just like all of our current taxes.


Except the top 1% pay most of the income tax. It's the bottom 50% living free of income tax.


The very rich don't have high income. At least, not taxable income anyways. If you work for a wage you're nowhere close to "very rich." Whether that wage be $10,000 or $10 Million. The system was designed that way by the very rich.
FatZilla
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Logos Stick said:

Sid Farkas said:

The precedent for such a tax at the Fed level is a constitutional amendment - ergo, it'll never happen.


Or, they will kill the filibuster, put more judges on the SCOTUS who have the IQ of a bug, like Jackson, pass the tax and declare it constitutional.


Constitutional Amendment takes 2/3 of each chamber, cant skip that just killing the filibuster.
agracer
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My money is worth significantly less today than 2016
Heineken-Ashi
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Y'all are going to be blindsided when deflation hits.
BigRobSA
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Heineken-Ashi said:

Y'all are going to be blindsided when deflation hits.


Nah I wear glasses.....
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