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$8.5 trillion in unrealized gains leads to calls for billionaire tax

Americans for Tax Fairness has ignited a renewed push for a tax on billionaires, emphasizing the staggering amount of untaxed, unrealized capital gains held by the ultra-rich. The advocacy group asserts that these gains, amounting to $8.5 trillion in 2022, represent the largest source of income for the wealthy and yet remain entirely untaxed under the current U.S. tax code.

The organization’s X thread highlights a concerning trend, revealing that billionaires and centimillionaires now possess 700% more in unrealized gains compared to 1989. Shockingly, over half of their wealth consists of these gains, with each centimillionaire holding an average of $132 million, dwarfing the median American household’s holdings by about 3,000 times.

To emphasize the inequality further, the group points out that the total unrealized capital gains of the super-rich equals the combined holdings of the bottom 84% of American households, approximately 110 million families. Furthermore, a significant portion of the unrealized gains held by billionaires is not tied to real estate, with less than 4% invested in property.

You can read more on the matter here.

What’s going on?

• Metropolitan Police Refuses to Investigate Prince Andrew After Unsealed Documents Allege Sexual Assault While In London (theDeepDive)

• Biden admin to announce independent contractor rule that could upend gig economy (Reuters)

• Fed Pivot Will Dominate Year of Rate Cuts (Bloomberg)

• Jimmy Kimmel Isn’t On the Epstein List (theDeepDive)

• Apple's Vision Pro AR headset to go on sale in February (Reuters)

• FAA Grounds Boeing 737 Max 9 Aircraft After Alaska Airlines Flight Loses Part Of Fuselage Midflight (theDeepDive)

• US Supreme Court rejects X Corp's surveillance disclosure challenge (Reuters)

• Superconductor Saga: Possible Room Temperature Superconductor Claims To Have Been Replicated by Two Independent Labs (theDeepDive)

• Post Office Horizon: Why Is Everyone Talking About the Scandal? (Bloomberg)

• Platformer Will Leave If Substack Doesn’t ‘Reverse Course and Remove All Pro-Nazi Material’ (theDeepDive)

• Twilio CEO Lawson steps down after bruising activist battles (CNBC)

What’s the latest?

• Canadian Economy: In November, there was a notable increase in insolvencies in both consumer and business sectors compared to the previous year. Consumer insolvencies rose by 24%, while business insolvencies saw a more significant increase of 36.8%. This trend of rising insolvencies reflects a rebound from the lows experienced during the pandemic.

• Israeli Airstrikes: An Israeli airstrike in southern Lebanon resulted in the death of Wissam al-Tawil, a commander in Hezbollah's secretive force operating along the border. This incident is part of an intensifying series of confrontations along the border, contributing to concerns about the possibility of a broader Mideast conflict.

• Honda Expansion: Honda Motor Co. Ltd. is reportedly considering a significant investment of up to $18.4 billion in an EV and battery plant in Canada, as indicated by a Nikkei Asia report. The company is exploring various sites for the potential plant, including near its existing facility in Alliston, Ontario, with a decision expected by year's end. While Honda Canada acknowledges the need to increase EV production to meet its 2040 target of all-electric vehicles, specifics of the Japanese report were not confirmed.

• Twitter Loses In Court: The U.S. Supreme Court declined to hear an appeal by Elon Musk's X Corp (formerly Twitter) challenging restrictions on public disclosure of federal law enforcement requests for user information related to national security. The appeal sought to establish clear standards for tech companies on disclosing government demands for confidential user data.

• Boeing Blowout: A Boeing 737 Max 9 operated by Alaska Airlines experienced an inflight blowout over Oregon, leading to a grounding order for 171 of the 218 Max 9s in operation. The incident involved a fuselage piece blowing out, causing in-flight chaos but no serious injuries among the 171 passengers and six crew members. The aircraft had a history of a warning light indicating potential pressurization problems on three previous flights.

Jeffrey Epstein list unsealed

The stock market and stuff

• Bitcoin’s Mysterious Creator Satoshi Nakamoto Receives $1 Million Worth of Bitcoin After a Decade of Silence (theDeepDive)

• Berkshire Hathaway settles valuation dispute with Pilot (Reuters)

• Boeing Slumps After Panel Blowout Leads to Partial 737 Grounding (Bloomberg)

• Bitcoin briefly touches $45,000 as investors await ETF decision this week (CNBC)

• Is Brock Broke? Tether Founder in Legal Battle Over Property in Puerto Rico (theDeepDive)

In the juniors

• American Eagle Hits 0.40% Copper Over 302 Metres (theDeepDive)

• Vizsla Silver Sees Resource Estimate Grow To 155.8 Million Ounces Of Indicated Silver Equivalent (theDeepDive)

• Lithium Chile Acquires 8,445 Hectares Of Claims In the Salar de Arizaro, Argentina (theDeepDive)

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