I think you meant to say “wealth is not income”. That’s the whole point of it being a “wealth tax”. That said, there’s pretty sound law arguing that wealth taxes are unconstitutional. There are far better ways to effect similar change, such as capital gains tax reform, and closing transfer tax exemption loopholes.
The IRS doesn’t care if you’re paid in money or not. Taxes are levied on things of value, i.e. wealth. That’s why non-monetary compensation like free lunch or other perks are still taxed using an equivalence value. It’s also why compensation in the form of stock options are still taxed as income. If only “money” proper were taxable, everyone would be paid in gift cards or precious metals.
Yes they are, however there is an annual exemption of £3000. Amounts above this are subject to taxation. There is a similar exemption in the US - $17,000 as of 2023.
that’s why companies often buy cars … for employees
That’s not how it works. Gifts over £3000 are always taxed. Additionally, gifts given within 7 years prior to death are subject to inheritance tax.
Bikes … Cars …
A company car is not compensation to an employee. They might be permitted to use it for personal use, but employers are supposed to report this fractional use which is then taxed. Whether that’s enforced or not, I don’t know, but the law is that personal use of a company-provided car is supposed to be taxed. The employee also doesn’t own the car - if they leave the company, the company keeps the car.
Bicycle tax savings is a separate thing entirely. Many benefits that promote healthy lifestyles receive special tax treatment; it’s not taxed that way just because it’s not cash.
I think you meant to say “wealth is not income”. That’s the whole point of it being a “wealth tax”. That said, there’s pretty sound law arguing that wealth taxes are unconstitutional. There are far better ways to effect similar change, such as capital gains tax reform, and closing transfer tax exemption loopholes.
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The IRS doesn’t care if you’re paid in money or not. Taxes are levied on things of value, i.e. wealth. That’s why non-monetary compensation like free lunch or other perks are still taxed using an equivalence value. It’s also why compensation in the form of stock options are still taxed as income. If only “money” proper were taxable, everyone would be paid in gift cards or precious metals.
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Yes they are, however there is an annual exemption of £3000. Amounts above this are subject to taxation. There is a similar exemption in the US - $17,000 as of 2023.
I believe you’re talking out of your ass.
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That’s not how it works. Gifts over £3000 are always taxed. Additionally, gifts given within 7 years prior to death are subject to inheritance tax.
A company car is not compensation to an employee. They might be permitted to use it for personal use, but employers are supposed to report this fractional use which is then taxed. Whether that’s enforced or not, I don’t know, but the law is that personal use of a company-provided car is supposed to be taxed. The employee also doesn’t own the car - if they leave the company, the company keeps the car.
Bicycle tax savings is a separate thing entirely. Many benefits that promote healthy lifestyles receive special tax treatment; it’s not taxed that way just because it’s not cash.
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