Tax on Unrealized Capital Gains!

by Simon 18 Replies latest social current

• 

  Simon

  So Janet Yellen, the US Treasury Secretary, thinks taxing unrealized capital gains would be a way for them to fund their runaway spending.

  First, they claimed that the real cost of their nonsense spending was $0, so they were lying then or are lying now ("why not both?!")
  

  Second, they claimed that money printing doesn't affect inflation, so why not just print the money instead?

  Third, the "for billionaires" is to get the feeble minded masses on board, those that live on benefits and vote democrat for more "free money", but the IRS monitoring of $600 bank accounts is also apparently to target the ultra-wealthy as well. i.e. it's a lie - they want the money, all the money, any money anyone has.

  For those who don't know, capital gains are when you make an investment and it goes up in value. Typically these are stock investments or property. The "unrealized" part means the gain is on paper only, because you haven't sold it. Now imagine that the asset appreciates, the home you bought 25 years ago for $200k is now valued at $1m ... would you really be ready for a 40% tax on the $800k difference? Remember, you haven't sold your home, so you don't have this money - it could fall in value, or you may have been planning on selling it and downsizing, to fund your retirement, or leave it to your children.

  You bought it with taxed money, now they want another cut because you saved and invested instead of spent and wasted.

  Some are going to claim "it's OK, they are only going to go after wealthy people". If you think they won't be coming for YOUR money, then you are a fool. The wealthy will move their assets abroad and the funding will come from the middle class, anyone who ever works hard to try to get ahead. First they will get the tax in place, then all they need to do is change the thresholds of who it applies to. Think about the monitoring of $600 bank accounts and why they want that, then look at the history of every tax ever - they are always temporary measures that are just meant to apply to a select few, before they become the norm, because politicians are addicted to spending money and will always want to turn the tap higher.

  Welcome to the Communist States of America, population: poor.

  https://news.bitcoin.com/an-act-of-war-against-the-middle-class-americans-criticize-janet-yellens-idea-to-tax-unrealized-capital-gains/
  
• 

  just fine

  Do I get to take a tax credit when the investment goes down in value? Nope.
• 

  MeanMrMustard

  Good lord. It's a wealth tax, of sorts. If you have to pay for unrealized gains, it will just force people to realize them - that is, sell the house (because you can't pay the tax). Of course, that will happen all over the place, and before you know it that 1m house is worth 30K. And anyone who attempted to save is poor.

  Its a way of forcing people out of property great reset style.
• 

  Simon

  "You will own nothing and be happy"

  I believe the "own nothing" part of their plan.
• 

  MeanMrMustard

  There's still a lot of people that own guns... wonder if they've factored that in. A tax like this would be a Boston Tea Party like event...
• 

  Simon

  A tax like this would be a Boston Tea Party like event

  I think they rely on the fact that they can control things - access to goods and services, and that they can turn off your banking and so on. It would require states to secede from the union and decide that they are going to have a different tax system.

  Also, the people who take to the streets in mass mobs always tend to be the left, who are the ones that will cheer this because they are short-sighted and bitter, and see this as the manifestation of "tax the rich (and give it to us)" instead of what it really is: make the rich take their money and leave, so the massive proportion of taxes they already paid disappear.
• 

  HappyDad

  Can you say communism/socialism?
• 

  Simon

  Don't forget too that if you set a new tax for the "rich" where "rich" is based on some $ threshold, and inflation is sky-rocketing, there's a good chance that many more people will eventually be over that threshold at some point even if they never lower it.

  Everyone in Zimbabwe is a billionaire.
• 

  Brock Talon

  Simon, will "unrealized gains" also include brokerage accounts?
  
  If so, can you imagine being taxed on that nice stock you picked 10 years ago that is now worth 10x of what you paid for it, but of course, have not yet sold it because you are waiting for a good time for you personally to do so?
  
  With this "unrealized gains" nonsense, they could tax you on the 9x "gain" of up to 20% (both long term and short term capital gains will also go up if the Democrats have their way).
  
  https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates
  

  What happens if after they tax you and you pay your tax, then the stock goes down? Do you get a credit back?
  
  Example: purchase stock for $10,000. It eventually is worth $100,000 (Market Value). Dems come in and tax you 10% on your so-called $90,000 "gain" and take $18,000 from you. How do you pay for that? You haven't even sold it yet, so where does the money come from to even pay it, that is, if you don't have a nice savings or other liquid account to tap into to pay the tax to begin with.
  
  Anyway, while you are struggling to pay your tax, the stock goes down in Market value the next year to $50,000 and you sell you position, with a stop loss to stop the bleeding and to take your earnings. Your real, actual "gain" was only $40,000 and so you should owe only $9,000 in long term capital gains.
  
  But, you have already paid (or are trying to pay) out $18,000 to the Dems the year before. So what now?
  
  Same goes for Cryptocurrency? How does the IRS even KNOW what I have in my Bitcoin wallet?
  

  This is not communism. This is total fiscal idiocy. Even the communists did not try to tax people on money they have not yet made because they were smart enough to know that having equity on paper does not always translate to actual earnings.
  
• 

  Simon

  Yeah, it's total economic idiocy.

  Yellen looks like the kind of confused old woman that can't balance her own checking account and is waiting for the prince from Nigeria to send her the $16m the late ruler left her, after she sent him all her life savings to unlock the transaction.

  This is just pure madness. The uncontrolled spending and money printing is madness. They claimed they were going to be the "adults in the room" but it's like children running a candy store, there's candy everywhere and they want more made so they can eat it faster.

  These are not responsible people. This is not normal. They couldn't do much more damage if they set out specifically to destroy the economy, so you start to wonder - is that the real plan? What is the final outcome that they are aiming for because it isn't economic stability and a healthy economy.