Taxation and the middle class

[tomh009]

Well, the point is that an existing owner of an asset accrued capital gains, and therefore tax, based on the existing rules. We are now changing the rules, and taxing the already-accrued capital gains based on the new rules is a confiscation of existing wealth.

Tax rules and rates are, and always have been, at the discretion of the government. There are never any guarantees as to what the taxation will look like a year later. Assuming that nothing will change a dangerous assumption.  (Professional investors are certainly aware of this and invest accordingly.)

Also, banking a retirement on ever-increasing real estate prices is also a risky assumption.

And while you say "not enormously wealthy", a person making a good salary (say, $100K) plus $500K+  in capital gains will surely look that way to someone who is making $60K and struggling to pay rent.