Why Taxing Unrealized Gains Is a Disaster Waiting to Happen
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- เผยแพร่เมื่อ 17 ก.ย. 2024
- Remember your high school economics class? Well, this isn't your teacher's dull lecture; it's real talk about why the proposal to tax unrealized capital gains is a disaster waiting to happen.
I'll break it down using a story that might sound familiar-Mamaw's house. Imagine the government swooping in to tax gains she hasn't even cashed in on yet. Where’s she supposed to find the money for that? Spoiler alert: It’s not as simple as they make it sound. If this passes, it’s not just the rich getting hit-it could be you, your family, and your future.
If you care about your financial future (or your Mamaw's), you'll want to hear this. Don't miss it-click play to find out what’s really going on and why we need to push back against these bad policies!
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Tax on something which has not been realized, is pure criminality, it’s a disgrace.
That is most of 1% wealth
They'll start taxing us at birth for our potential work income.
Most taxes are just that.
And it's not in the Constitution, ruling around the 1920's.
Your concern for people with more than 100M in capital gains in tradable securities is both commendable and touching. May I suggest that you pass the hat or at least start a Go Fund Me for these poor distressed people.
And millions of people are going to think this is a wonderful idea and vote for it with a zero idea of how it’s actually going to work
That's about half of this country. They will absolutely destroy the other half, and themselves too. They have no idea.
EXACTLY. People NEED to understand that NOTHING is free. Instead of rewarding and enabling continued reckless govt spending we need to reel it in.
Those people are liberals
Those people are poor and would rather destroy someone else's life than improve their own.
@@dmez7020 they are not people
Remember those guys at the WEF who were saying "You'll own nothing and you'll like it?" This is how they take your house and rent it back to you.
Please sir: I’d also like a credit on my unrealized losses….
Only if you have the social credit score for it.
Someone gets it... Now how do we reach the blue voters with the unpopular truth..
The majority of blue voters don't really vote, and the majority of them don't really own anything.- ImO
The majority of those I know already live in pu pic housing or rentals with no hope of ownership. Many of them within a bicycle ride of work IF they work at all. Which means they already are receiving Minimum Basic Income. This is nothing less than a full on effort to eliminate the middle class and create a fully controlled serf class.
Tax on unrealized gains is another example of insanity...
I don't even know what to say. It makes absolutely no sense at all.
I'm a swing trader, and taxing unrealized gains would leave me losing money for some trades, even if the stock rose in price. This could ruin my financial future.
Agreed!
Not could…but would!
@@mizzmolly7649 it would lead to market crash every year as everyone would be panic selling all positions that have any capital gain at the end of fiscal year (or whatever day would be indicative for that tax). Better to pay tax on realised gain than on unrealised that could very well turn into capital loss in days (even minutes) after being taxed for gain...
3:37 So right. The Government doesn't have an income problem, they have a spending problem.
A government controlled by a bad king results with its people suffering.... a government controlled by a good king results with its people thriving.
A government controlled by mostly corrupt politicians results with its people suffering.... a government controlled by mostly good politicians results with its people thriving.
*In the end history keeps repeating itself where the super wealthy horde everything until the overwhelming poverty revolt and delete the super wealthy.*
Only 0.0001% of people today are super wealthy... and century after century the super wealthy never learn history.
@edmundgonzalez8731 absolutely correct... also stop the pork belly funded needless programs. I think that's what you are saying.
That is totally in line with the "you will own nothing" policy.
correct. already there. A Nation of Renters in the 21st Century.
That is the Democrats like AOC's battle cry.
Welcome aboard comrade
"I'm mad as hell but I'm just going to keep taking it more." - conservatives.
And you will eat ze bugs.
Capital gains tax is like being charged for a crime you never committed.
thats how you know its a tyranny.
Income Tax(Job) should be at the rate of Capitol gains. CG should be taxed higher. A worker is trading work for money, a even steven swap. Money making money is not a even swap.
no, that would be reparations
@@Danny-bd1ch no, you are not trading "work for money", you are trading time from your life for compensation according to your skill level. making taxation literally slavery.
Be more clear.... taxing unrealized capital gains is the issue.... the only decent place to change tax law in regard to capital gains is maybe increasing the tax on short term capital gains to 25%. Flipping your capital within 1 year should have tax ramification. Taxing unrealized long term capital gains is a wealth grab, discourages saving and investing, and is just a bad, bad idea for everyone......
They PROMISED that "no one who makes under $100,000 would ever pay taxes." $100,000 in 1913. How can you tell they're lying? Their lips are moving.
Two words that explain this perfectly: bracket creep. They *always* start with socking it to the
rich and before we know it, everyone is getting milked hard for ever more money to squander.
@MikeTellsIt keep voting for those democrats and you will up having nothing. Yhis us the truth. Harris knows nothing about economics. Trump
started out as a millionaire and is now a billionaire. Who knows better how to ru. The country economically. OTING Trump 2024
who promised that?
@@davidjones-vx9ju I screwed that up, but what really happened still sucks. From Wikipedia. The minimum income to pay taxes for singles was over $3,000, nearly $100,000 today. That rate was 1%. The top rate for people earning over $500,000 ($15.8 million today) was 7%. 5 years later (WW1 was expensive) the top rate was 77%. I stand by my method to spot the lying.
And this country was founded on a much, much smaller tax being too far. We are supporting a cancer that's far larger than the host at this point.
Insufferable stupidity. Taxing unrealized capital gains will be the end of any investments.
no, there would still be IRAs as they're tax exempt. You'd get rid of institutional investments really fast though. Blackrock would be screwed and that's why there's all this propaganda around it. Let the market crash so I can sell all my physical gold and buy in low on my untaxed retirement plan.
Smart investors will take their money to Dubai and other investor friendly nations. Also, I would sell my house and move to another country. If it is the intention of the west to destroy itself, the west is doing a fine job
Isn't that the goal to begin with?
It’s not stupidity, the Democrats know exactly what they are doing. This is all based on the greed of underachievers.
Too bad the mainstream media doesn't cover this. It's highly relevant, but that would require them to do actual journalism.
MSM work for the Dems and socialist
Even if they did, it would be spun into the typical "it's only going to affect the rich, not the middle class" BS
Why would the media tell you the truth when lying for the political establishment is their main job?
Paying a tax on money that i haven't even earned yet is like putting you in prison for a crime you have not committed yet ,
And counting chickens before they hatch.
Maybe the government has a problem, since they always base budget spending on uncollected taxes. They should wait and only use what they get. We don't get to go negative for food, but they can.
They're going to do that too. Thought crimes and predictive criminality.
Your comment sadly makes sense to the D's.
It's also a perpetual margin call.
The Supreme Court ruled that taxing unrealized gains was unconstitutional back in the 1920's
Harris and democrats in general have no use for the U.S. Constitution. It is standing in their way in their quest for total control of America.
The SC also said abortion was a Federal legal right, that decision was reversed back to the States. You get the right judges, anything can become legal.
Like they care about the constitution.
@@peterfreund2223 seriously? You wanna know what else was unconstitutional back in 1920? Weaponizing the DOJ and the FBI and government organizations to defeat your opponent in the presidential elections. You need to wake up.
@@peterschmidt1453 Nope - that is not what the roe decisions said - it is just what you think.
2% taxation in 1775, 40%+ in 2024. We have a real problem.
conservatives: You cant imagine how hard we can ignore reality when we pray hard enough."
Likely higher than that after you factor all the taxes.
Income Taxes - Both state and Federal.
Withholding for SS and Medicare.
Tax when you buy something at the store.
Tax when you sell that something.
Property taxes
etc..
Would be interesting to see a study of how much is left after you are done paying all the taxes and fees, and break that down to each state.
@@Alex-gh3zo
Calls for a little "TEA" dumping !!!
@@JohnD-JohnD”Income Tax by State: Which Has the Highest and Lowest Taxes?” It’s on Turbo Tax’s website.
Not sure if that’s what you’re looking for. Scroll to the bottom.
@@Alex-gh3zo yes we do!
One thing I have learned being self-employed for 45 years and after just barely crawling out of the working class, when they go after the "rich" it is the middle class that they end up going after and through the middle class, they end up hurting the working class.
Most of the so-called "Middle Class" is actually Working Class. Very little left over after month to month.
WARNING. This is a tax from Hell.
In Denmark (where unrealized gains are taxed heavily) you can be indebted for life if you invest your time and money in a start-up. If value of shares go up at end of financial year one you will be taxed for a fictional profit, though you don't want to sell and/or can't sell at that particular time. If value goes down later same year you loose a large sum. Many never recover!
The same happens to pension saving accounts. You are taxed every year of fictional profits of the investments you have made to secure your future retirement. Instead you are securing the state tax revenue. If the stock market crashes you will never realize a profit, but will have payed lots of taxes year by year.
Same with property. As of 2024 in Denmark you will have to pay tax on your house based on a yearly algorithm government valuation. Government decides fictional "value gains "to be taxed AND the the percentage to be paid of the rising value of the house you live in - with no intention to sell. If you can't afford the tax you can borrow from the government at a high interest rate which means the state gradually year by year takes ownership of your house...
America, don't go down that road
@@Michael34J holy smokes
Inflation is a Tax.That is what is taking your money.
Same corporations who are the cause for inflation too. Definitely not the government that's responsible.
And inflation enables capital gains for the most part.
@@CaliSteve169 Others call it corporate price gouging.
@@Spec62 with the help of government.
💯% correct. And the worst part is it's the most regressive tax of all because the poor and middle class are less able to defend themselves against it.
They print all this money, then throw their hands up and mock surprise and say hey where did all this inflation come from?
What if I have a loss? Am I getting money back? This whole thing is absolutely crazy-town.
A BIG FAT NO!
So your home has increased 10 fold in value ($30,000 to $300,000) and you never sold it. They will tax 25% on the $270,000. The market crashes and the value of the house drops to $150,000 are they going to give you half of the tax money back to you.?
Nope, better get on the bread line, pal
@sd906238 maybe not, because it's not in the proposal. Also, the gov is going to make sure the value keep increasing so you will be forced to liquidate your assets , to paid the tax over unrealized gains. Then we will be happy owing nothing.
No. You will be taxed on the loss if Libs get their way. 😅
Those with 100 million+, own apartment complexes and commercial retail properties. If you rent an apartment, the landlord will undoubtedly pass this tax down to their tenants in the form of increased rent. If you shop, Home Depot, Lowe’s, Target, Walmart, etc, they lease their buildings from commercial landlords. The commercial landlords will undoubtedly increase their tenants rents. The retailer will undoubtedly pass this tax on to consumers in the form of higher prices. Long story short, it will affect almost everyone, one way or another.
100% correct.
I own several rental properties that I use to supplement my income and teach my kids handyman/maintenance skills. In the 14 years I've been doing this, I've never once raised the rent on a tenant. Not one single time. It's not that I'm a bleeding heart; I'm a pretty conservative guy who believes in giving good tenants a break instead of squeezing them for everything I can. Most of my tenants go on from short-term renting to buying their first home. Everyone wins.
But now, I'm in the position where I will be forced to raise rent just to keep my head above water. Thanks to rampant inflation and poor economic policy, everyone loses. And the democrats want more of this insanity?
AH, but VP has a solution to that problem, price controls. She's a real genius, isn't she?
I think this commie redistribution tax will be limited to liquid assets like stock investments not unrealized gains in real estate property or apartment buildings or farm land etc. Check me if this is wrong.
@@robw9435Explain this to your tenants when you are raising their rents. I'd bet most of them vote Democrat. One of my employees is a true left wing liberal. He's always talking about the "Party of the 'Working class' ". I laugh my ass off every time and ask him to explain. He can't.
@@billymorgan7717 yes indeed.
Step 1: They pass the unrealized capital gains tax for ultra wealthy.
Step 2: Stock Market sells off harder then ever before.
Step 3: They pass a "fix" which lowers the threshold of the tax to wealthy and property owners but exempts those who bought and paid for the politicians.
Step 4: Everyone starts losing their homes and the government then sales them at auction, but you have to meet unrealistic standards to participate in said auctions so only their friends can buy up your homes.
Step 5: You will own nothing...the be happy part is pending.
0:46 I ask leftists, "What tax on the rich has never been applied to working people?" We pay tax on telephones because only rich people had telephones. We pay tax on jewelry because rich people bought jewelry. The list goes on.
Once you open the door, the federal government is moving in. Then it’s on you to get them out. Great video!
The government is moving in? Since when? When the Constitution was written?
I'll be sending exactly what they want, an 'unrealized check' for those unrealized gains.
An unrealized gains tax is a unconstitutional. It's a violation of the 16th amendment.
@@fredholley6248 remember, the government imposes taxes at the end of a gun.
You're absolutely correct. Until you REALIZE you have $100 million dollars lying around, you're safe.
😂😂😂
And they'll come and take your property. Not the time to talk like a tough guy, time to get the fools around you informed!
Leigh, I love the fact that you got this vid out in under 4 minutes. We need to keep it short and simple. You did that here. Bravo!!
@@johncopulos3897 YES... great, simple video.
The fact that they are even considering and talking about taxing unrealized gains should disqualify this group from office. I fear that many voters do not pay attention to actual policy and instead vote with their heart for superficial reasons.
We already have taxes on unrealized capital gains!!! It’s called property tax. Built a home for $260k over a decade ago, still live in the home. Currently being assessed for and paying property taxes at the assessed amount of over $650k. The assessed amount has increased every year. I haven’t sold the home but I have to pay taxes on the assessed amount.
Exactly. It's like we already give REPARATIONS to certain groups of people. It's called public aid.
@@2Eaglez ..and if we have another housing market crash (again) next year, they won’t be issuing refunds.
Property taxes are a form of wealth tax, not a tax on unrealized gains.
Wealth taxes are also a bad idea, but they are based on the current value of an asset, not the gain in value of an asset.
If you buy a house and the value goes down. you still owe property tax on the lower value.
If there were an unrealized gains tax on houses and your house went from 300,000 to 600,000 during the latest housing bubble:
1. You would owe a gains tax of 45,000 dollars (Assuming they eliminate the 100 million minimum - they will eventually)
2. You would also owe twice as much in property taxes (assuming no homestead exemption).
@@mattzun6779 property taxes are a SERVICE tax, based on property value. don't want to pay a high tax? don't build a big house on a large property(yes, you small house on a small property will also increase in value). the only reason those properties are reassessed is bc those services COST more with inflation.. don't want property taxes to increase??? DON'T VOTE FOR THEM..VOTE NO, and only bc the property value increases will your taxes increase.. too many people voted FOR these property taxes and increases or extensions of them
@@cheeto225 Nobody voted for any property tax. Or any other tax for that matter. Our elected officials take our votes and then do whatever they want weather the people approve or not. It's like saying California voted for irresponsible government spending. Basically we as the people have no choice in the matter. Faces change but nothing else does.
If you have $100 million in stock and you're looking at a 25% tax on unrealized gains, you'll need to sell stock. The ripple effect this will create will be a massive market crisis, and will drive prices down. This would actually create a stock market crash.
Very, very few countries have taxes on unrealized gains. Sweden tried it and gave up. I think only Norway and a couple of other countries have it. If that's what we want America to be, then go ahead and cast your vote. Otherwise, this is the stupidest economic policy one could possibly imagine
I couldn't care less if those with $100 million plus in stock are required to pay a similar tax rate to me using this as the mechanism. Let them pay their bill. And yes, it they don't like it, they can find a better deal somewhere else. God knows that they'll do that anyway. But the freeloaders can ante up just like the rest of us. Hard to believe this many people are dumb enough to stand up for Elon's or Bezo's free ride at their own detriment. They can pay for their own aircraft carrier yachts.
AND who holds Most stock??? Yes, your 401K. This tax is like kicking the last chair off the titanic.
Like, it would "Fundamentally transform the United States of America"?
I have doubts that the SEC has enough staff to enforce these shenanigans.
Prices high is problem prices down is problem. You can’t win.
Great video. Anyone who owns stocks held by the rich will be affected by the drop in value when the rich have to sell shares to pay the tax. It never affects "only the rich."
So Harris wants to tax me on this unrealized tax gain on top of the property taxes I pay to fund other programs.... that I will not benefit from...$25k for first time buyers ( I saved for my down payment no government help) for a higher child credit...I don't have any children...you want the current tax brackets to expire so that now my income will be taxed at a higher rate and you also want to tax the capital gains on my investments that I haven't sold yet....and to PAY FOR ALL THE FREE BENEFITS THESE ILLEGAL IMMIGRANTS ARE RECEIVING BECAUSE YOU ALLOWED THEM INTO THIS COUNTRY....did I miss any thing else! That is okay because I AM NOT GOING TO VOTE FOR YOU! I am A TAXING PAYING U.S. CITIZEN...you and Biden HAVE DONE NOTHING FOR ME...I AM NOT BETTER OFF TODAY V 4 YEARS AGO...I DIDN'T VOTE FOR TRUMP...BUT NOW I WILL! TRUMP 2024!
You do realize that Trump made those tax brackets temporary. They were scheduled under him to revert back to higher rates in 2026. The corporate tax cut was made permanent at the same time. He was only looking out for the rich.
You hit the nail on the head.
It would be one thing if, in return, the federal government could show us some fiscal restraint. But, the country is $35T in debt, and neither party has shown any ability to constrain spending.
You voted for biden. You are part of the problem. You helped sponsor this!
Very well said 👏🏼👏🏼👏🏼👏🏼
Excellent explanation! Leigh. When I married my Japanese wife in '89, Japan instituted a 3% Consumption Tax to pay for Social Welfare schemes. My wise wife said it may not seem significant now ... but watch how it grows into the future. TODAY the tax is at 10% ... and growing. The TAX & SPENDERS game plan ... start insignificantly and grow massively over time.
We bought our current home/property in 2015 for $390k. Fair market value right now, 9 years later is almost $700k. Our scenario is duplicated millions of times over across the US. This is why Kamala and her handlers are looking at this.
I am not paying taxes on unrealized gains on the house I live in and pay property taxes on. Period.
Then you better really consider your voting pattern in Nov.
@@jimgrayson9610 💯
In Mass. & some other states, don't they have to pay a 'value tax', every year, on
your personal possessions? This includes cars, trucks, mobile homes, etc?
To me, that's an unrealized gain!
@@rongendron8705On top of property taxes? Not sure if you're referring to a property tax. Here in Utah we pay property taxes on all that good stuff including our homes.
You don't make over 100 Millions do you?
Please everyone ....don't vote for Kamala. Please Please Please.
She's a Marxist for sure.
@@Soothsayer-rs5nb .. okay I'll vote for the criminal Donald Trump
@davidbrooks8809 hate to break it to you. There are all criminals. They all perform insider trading, tax evasion, money laundering, heck even Prostitution at some type of level. How else do politicians become multi Millionaires withing 2-4 years after getting elected. Somehow after not having a criminal record for 76 years Donald Trump is now a criminal being convicted of document Errors. Please turn off all the news and think critically about what's going on.
Nobody is bht they still going to try and install her, well walz is thier goal she's just the door
@@davidbrooks8809 Guess you missed in video one of the reasons not to vote for kackamala
Funny how none of this is reported in mainstream news
@mikezerker6925, the media is reporting Kamala's proposal. They're also reporting that many are advising Kamala to step back from it. They are NOT reporting the claims made in this video because these claims are false. NO ONE has proposed going after "mamaw's" $600k increase in net worth, unless "mamaw" is also worth over $110M. So ask yourself, why is "Leigh" making videos filled with falsehoods? Why does she want to protect multimillionaires? What is HER agenda in misleading you?
$60,000 to $600,000 via a Government assessment...
They assess the home, then tax you on THEIR assessment.
The more your property increases in assessed value, the more the state gets from the assessed cost... See how the government loves your home "ownership"?
Your pension relies on unrealized capital gains not being taxed. But a lot of people dont realize that.
I keep warning people, and they think I'm nuts. Excellent video!!!
Excellent video but also not true…the so called tax proposal she talks about only affects you if you have more than $100 million in assets. Also it is not applied to real estate so whilst I also enjoyed the video it is not exactly true.
I’ll put it in Democrat voter terms:
1) Your employer has been paying you 1/4 oz of cocaine per week for doing your route.
2) You’ve been buying a pair of Air Jordans every month to build your collection.
3) What you don’t know is that each week, your employer has been stepping on the supply by adding baking soda.
4) Your shoe dealer demands more coke per shoe because the supply of it has been inflated.
5) Now, when it comes time to pay tax for your turf, your dealer demands you return more coke because you Air
Jordan’s are worth 1oz each in new coke and you only paid 1/4 oz each for them in the old coke.
That, ladies and gentlemen, is how the government prints Dollars that create inflation and then want’s to tax you on
“capital gains”. Your Air Jordans, and your house, and your stock portfolio is not worth more than it was 20 years ago,
THE DOLLAR IS WORTH LESS.
They should teach this exact lesson in kindergarten. It's perfect!
Funny stuff. Live it.
Yo Bro that is BOP! mes donts like did new math against my kin! it b Bop
Taxing unrealized gains will be the biggest scam of our lifetime. It will deter the common investor from taking any steps forward!
Actually, second biggest scam. The first is how Scamala Harris became the candidate for president.
The common investor doesn't fall into the bracket of 100 million. You think the common investor is a billionaire?
It will still affect the common investor. Most people with that high of net worth keep most of their money tied up in assets. To pay off the unrealized gains tax, all these whales will sell off massive amounts of stock which will cause a lot of those stock prices to crash which affects everyone.
And what’s our prize for doing this? Our government gets to mismanage more money. Yippee?
@@mathisnotforthefaintofheart a scam is a scam, taxing the thought of making money and putting any cap on the free market is unamerican.
@@Arswhooper A scam it sure is
If we met in the grocery store, we would have nothing to talk about. this video shows we have so much in common it’s actually unbelievable.
Even to think that this is a topic of discussion should tick every hard working American !! Someone has to put a stop to legalized theft and corruption!
Excellent video and exactly what came to mind when I first heard the proposal.
Off topic but similar. A couple years ago Massachusetts pushed through a bill to heavily tax estates over $1 million. People said the rich deserved to be taxed. I said $1 million could be grandma's house and her husband's pension combined. It never affects only the rich. So many middle class families are getting screwed right now, including the idiots that voted yes for that bill. "Well I didn't know it included homes and pensions and personal property." Really? Because the governor clearly stated what was included but all people wanted to hear was $1,000,000 and assumed it didn't apply to them.
Plus, anyone who holds stocks held by the rich will take a hit when the rich have to sell shares to get cash to pay the tax. You can never tax the rich without it also affecting other people.
In 2023, Massachusetts increased its estate tax exemption from $1 million to $2 million. That means up to a $4 million estate tax exemption for a married couple using standard credit shelter trust estate planning. The estate tax rate was also reduced saving up to $100,000 per estate. Unfortunately, these amounts are not indexed for inflation. Pensions are not subject to estate taxes in any jurisdiction because they are not strictly speaking assets. They are annuities that are only subject to income taxes when payments are received . An unspent lump sum pension would be part of an estate. Personal property is a rounding error in most estates. The junk in our houses is worth virtually nothing.
An unrealized gains tax is a unconstitutional. It's a violation of the 16th amendment.
@@johnfitzgerald6746 Since I retired 15 years ago I have been selling items on Ebay that I purchase at auctions. You are so right about the "junk in our houses". Most of the things that people buy are nearly worthless when the time comes for those items to go away. A huge waste of money. And there are thousands of storage units across the country filled with useless junk that cost money every month to store. It is so easy to build wealth in your lifetime but most people simply throw away their money.
@@VictoriaInamorati1 I live in Masshole and I hate it but I hate RI even more because of the way they wrote the hands free law. Masshole at least has a cop that says, hey, stop what you doing and drive. Not ri, especially when you are a Masshole plate. They'll screw you except for a little tiny written piece that says it "if you're a good driver in the last 3 years you will just have to pay court costs.
So I am buying another car, plate and tint my window and have a phone holder. No longer will I drive through specific towns in RI anymore until I see where I end up in a year.
Like you said, we've been dealing with this for a long time with property tax. Taxing things at fair market value is also taxing unrealized gains.
@@vf24renegade23 that’s why Prop 13 passed in California back in 1978. Unfortunately the current state government is desperately attempting to chip away at it.
Well said.
My great grandparents bought some lakeside property almost a century ago when the area was undeveloped and had little value. My great grandpa built a cabin and developed the property (even laid the gravel road himself).
Now the value of the land is super high because rich people have moved in all over the lake, and the taxes we pay on that property are insane. How is it fair to tax someone on the value of land that they're not selling? The property doesn't make us money! We want to keep our family cabin but we're being taxed outside our reasonable means.
In my opinion, property tax should be capped to the value of the property at time of purchase.
Well said. Succinct and to the point. No blah, blah, blah introduction. Had a topic and boiled it down so that anyone could understand. Kudos on a great presentation. I wish I could show this to everyone on TH-cam who thinks they have to ramble around and talk to you about everything under the sun for 20-minutes before giving you the meat of what their presentation is about. You absolutely made my day. Because of that, I subscribed and will "word of mouth" advertise your channel all over. Thank you!
So, you're okay with conflating $600k with $100 million to prove a point? What exactly is her point, please? I mean. . .her grandmother doesn't realize she has nothing to be concerned about unrealized tax gain? Make that make sense, please?
This has been my exact argument ever since I heard about this tax proposal. If this proposal is enacted, we will own nothing and be happy, where have we heard that before?
That's not "the big scary plan," it's the title of a paper about the sharing/ subscription economy (rides. entertainment. etc.).
Having been raised in the south, and exiled to the midwest, it is fun to hear this delivered "Southern Style, ya'll"
The Tennsee accent is very annoying.
@@marblox9300 I can understand. As humans we like what we know. I'm not sure where you are, but I am sure if you were in a room in TN and tried to give a talk, the room would find you "annoying " and not trust what you were saying. Just human nature.
I’m no Warren Buffet but if they are going to take away part of my gain before I even get to see it, I’m investing elsewhere.
Where?
@@gregoryholliday6017 Like Democrats, invest in foreign oil, foreign 'green energy' and foreign manufacturing while killing domestic production. That's the Democrat way to make a buck.
Americans are one of only 2 nations on the planet that force their citizens earning income abroad to pay income tax to the IRS. I would not be surprised if foreign market unrealised capital gains will be included.
@@gregoryholliday6017 Neighbors kool-aid stand.
Enron use of Market-to-Market accounting to book future profits didn't workout too well either. Enron was booking future profits that were unrealized to please the stock market until they ran out of cash because they never earned that future profit.
Now, the government wants to tax future unrealize future earning, that may never happen, and they are not going to give back your taxes when you do not earn this money.
Scammers never give money back.
Mark-to-Market accounting. But otherwise a spot on example!
Enron is what happens when you deregulate & privatize electric utilities in a capitalist economic system. A bunch of "entrepreneurs" & MBA's get together and figure out how to game the system & corner a market. Consumer rate payers, shareholders and bankers all got screwed. All of them! THE LESSON: some essential commodities need to be well-run public utilities, not private for-profit scams. Oops! Somebody tell Ayn Rand.
Governments at all levels keep adding taxes or raising rates of already existing taxes. I tried to explain to one such tax-and-spend local politician that eventually we all will be paying 100% in combined taxes. I layed it out for him on a note card. He shrugged and said it would never happen....and acted like he just did not understand the concept even.
I doubt he was pretending
Thank you so much for posting this video. Income Tax is robbery but this Capital Gains as evil as Probate Tax is beyond evil.
Thank you Leigh. I still believe that when you payoff your home and land that you should not still have to pay taxes on your property. 😢
But then how are the useless overpaid teachers going to get paid.???
Thanks for putting this out. So many have no idea the issues this would create.
When my house goes up in value I have to pay more money, but when it goes down in value, do I get my money back?
No?
Of course. It can’t work that easily. They have to over complicate things and screw people over.
They just print more money and prevent more houses from being built so prices are guaranteed to go up.
Leigh, you are without a doubt the best-looking economics teacher I have ever had. You are absolutely correct on this subject. Hopefully, everyone will listen to you.
Um, no.
Print money like crazy, cause excessive inflation, watch the assets increase in value because of said inflation, and then tax unrealized capital gains as income forcing the owner to sell assets to pay the capital gain taxes
This is exactly our numbers! Bought the home in 1990 for 58k. 5 acres with modest home, barn, coop, granary, etc. Added 1500 sq ft addition in 1994. Yellowstone started filming here 5 years ago, which caused unrealistic, terrible house price increases as people rediscovered Montana. We could not afford to buy our own home at these “values”. How is it a gain when we have never received anything in value? It just sits here, the same for 24 years.
Please, please do not vote for the party of stealing what we’ve worked for.
I’ve never understood folks that jumped out of 10 story windows in 1929 as the crash took over. I understand the futility of it all more and more. God help us.
This type of tax is blatantly unconstitutional.
Well SCOTUS will stop it, just a soon as they figure out what a woman is GOD help US!
You totally left out inflation. $60K then in today's money is at least $300K. Taxing unrealized gains is just wrong in so many ways.
@@markbernier8434 How much was a computer, an iPhone, a 79” flatscreen tv worth in 1969 dollars? A trillion dollars? You can’t just take a historical price and divide by the GDP deflator and say, “$8: that’s 20 billion in today’s dollars.” People regularly do it blindly, though. Stupid.
An unrealized gains tax is a unconstitutional. It's a violation of the 16th amendment.
Bingo on the inflation adjusted gain! So the theft is even worse because you are taxed on inflation!
That the government caused.
@@douggodsoe if something was worth $10 in 1969, why is it not still worth $10?
This would destroy our country...everyone will be equally poor. Remember...most people are employed by wealthy and rich people, if you don't like that, work harder, then maybe you can have people work for you.
Our country is already destroyed. If everyone is equally poor, then maybe you people won't be so comfortable and you'll actually do something to save the country. Before they make everyone equally poor tho, they're gonna take all your guns away. They're not stupid.
This was the best breakdown of what I was trying to explain to a friend. Government never stops, but they’ll sure be quick to spend your money.
It will hit housing market because your home is considered an asset.
Can’t wait for Trump 2024 to stop this nonsense❤
You are correct. Spread your message. Thanks
Americans are already taxed to hell. Income, sales, payroll, property, excise, transfer, gas, tariffs, exit taxes and so on. Any new taxes will eventually end up right in the laps of lower income Americans at some point.
An unrealized gains tax is a unconstitutional. It's a violation of the 16th amendment.
Yeah and these "compassionate Democrats are taking billions of taxpayer dollars and giving it to "illegal immigrants "! How's that for taking care of America?
No sir. It's a fact. The more affluent are taxed less. It's a fact.
You'll be surprised to read that the top 1% (the elons and Gates of the world) pay 45% of all the taxes. The bottom 50% of, pay rought 2.3%. I'm not even rich and I can tell you that seems remarkably unfair.
@@Spec62 I don’t think you all know the definition of the word fact, right now the bottom 50% pays about 2% of all tax revenue and uses a massive chunk of it. The top 20% pays about 70-80% of all tax revenue, when will be enough? it will never be enough for you will it?
Let’s not forget that tax is annually on every unrealized gain so even though you pay it in year one you’re gonna owe it again in year two when you get reassessed
You are so misinformed. Once you pay the tax on a capital gain, that ends it. You may have to pay tax on any earnings that gain may produce later- but never again on that initial gain.
@@roberttauriainen9242 All it's gonna take is your local county tax assessors to go around one year and "reassess" everyone's property values. They already do that, and it nets them a LITTLE bit of income. You've got to admit that this is an incredibly dangerous situation for just average folks. The government WILL wield this power to handle budget shortfalls, just like they've done with social security. There's no evidence in the history of our government that could possibly lead you to believe otherwise.
An unrealized gains tax is a unconstitutional. It's a violation of the 16th amendment.
@roberttauriainen9242 your conclusion suggests a realization event occurred. A tax on unrealized gains has by definition no realization event. It is more appropriate to call it a federal ad valorem property tax. There are reasonable concerns that such a tax is unconstitutional as a direct tax.
Robert maybe right in this case, seeing how you have to sell the house to pay the tax. Now you have a realized gain
Japan taxes unrealized capital gains worldwide for foreigners resident for over 5 years. Imagine being taxed on your USA-based Roth IRA unrealized gains every year! That is exactly why I don't live in Japan anymore. If this happens in the USA, many middle class people are going to look at their retirement savings, and choose to leave the USA for a country with more sensible tax law.
Middle class people don't have 100 million. Not even 10 million.
Good, leave.
When “TAXATION IS THEFT” came out of your mouth, you just gained another subscriber!
That line is such BS it's painful. How the hell do you people think we maintain our infrastructure? Disability? Welfare? Social Security? You can't fix a bridge with hopes and prayers.
Beyond impressed. You kept it short and simple. Well done
This needs to be a Trump ad.
They got away with property taxes. You already own no land and seem happy about it. Why wouldn’t they get away with this and all their other plans?
🤣😂 I can't even begin to fathom the degree of economic illiteracy required to actually propose taxing UNrealized gains with a straight face. 😂
We don’t have a tax problem, we have a spending problem.
But the military industrial complex needs to be going on and on....do you know how many jobs that entails?
@@mathisnotforthefaintofheart 3 million. And why-to fight everyone else’s wars?
@@habbadabbado5765 Yep. Instructed by our Master in the middle east
Ill burn every dollar in the backyard before I do that. Ill go to prison for the last 5 years of my life before I do that.
You can't be incarcerates for owing a debt. The debtor's prison was ruled unconstitutional a long time ago.
@@4dscdriver Have you met the IRS?
@@maryleigh8990 have you read the ruling on debtor's prison? The only reason why anyone would get arrested for owing a debt is because they don't know their rights, and don't fight them legally.
You goin to the jale. Jale Food.
@@4dscdriver I must have completely missed that ruling. Can you be a bit more specific? You know, so I can't go see for myself? Which ruling, which court, which state, which country? Whether you are a bot or a real person...
Try harder.
A friend of a friend (not my friend nor will they ever be ) came to a get together hosted by a neighbor. She and her husband were literally in tears because most people in the gathering were conservatives. They tried as hard as they could to change our views. Mind you I was there trying to have a good time in the pool but this couple wasn’t having it. You see they have not 1 but 2 kids claiming to be manual transmissions. They told the people that were listening that because of our views her children would not be able to obtain health insurance. We said how so? Well because a certain ex president wants to ban child six changes. They stated that because of our views she will have to uproot her family to another country. You see this is the problem. People who vote base on a single issue. She’s willing to trade her house for her son’s pp. insanity.
As far as this unrealized taxation. The government wants money and they are going to force people to sell their homes in order to realize gains. People better get educated on taxes. Start keeping records for everything you spent on your homes and raise your cost.
God bless you for laying this out in stark terms. I've tried explaining this to left leaning friends. They laugh it off, thinking it can't affect them. Time to wake up.
If you want more of something, subsidize it. If you want less of something, tax it. Poverty is subsidized, success is taxed.
Thank you for explaining this. Some people just don’t understand how the government works and how it wants to control its citizens.
That’s as close to communism as you can get
This has got nothing to do with communism. (Or socialism for that matter though this country has had socialism for the rich for a long time)
It will literally kill the family farms that still remain ! 1,000 acres is not a large farm if you raise soybeans, wheat, cotton,corn or cattle ! Dad or grandad passed who paid 1940,50,or 60 prices for farmland and now you owe a ton of taxes and the only way to pay is sell off your land ; your means of production and income ! Something will have to give !
This is why America 𝘥𝘦𝘴𝘱𝘦𝘳𝘢𝘵𝘦𝘭𝘺 needs President Trump now more than ever.
🇺🇸 🇺🇸 TRUMP 2024 🇺🇸 🇺🇸
I have a feeling this is the first step before the realization of the joke the government would tax the air you breathe if they could.
Well said Leigh, you are spot on and will be sharing this with several people. Just found your channel and am now a proud subscriber.
Address the concept of an investment appreciating... unrealized gains getting taxed... then going back down in value?
In Netherlands we have been paying unrealised gain tax for 15yrs now or longer. Its brutal
I live this today - I am paying unrealized property tax - Recently in 2 years, they reassessed my property up 25% and it is going up again this year. I am paying taxes on property supposedly valued at over three times what I bought it for - my income has not gone up much. It is now my largest monthly expense. I will eventually be forced to sell - this should be illegal.
I seem to remember in my tx class that this was decided by the supreme Court way back when. It was actually argued that taxes would be assessed on unrealized gains instead of actual income.
It happened to my ex wife in 2000 and yes by the time she sold her stock it was worth nothing and the government would not give her money back. Meanwhile executives got 100k tax exemptions on their capital gains.
Let me take it a step further: Mamma realizes her tax liability of $75,000 is beyond her cash savings and decides to sell her rental house that is worth about $80,000 right before April 15th. However, and unfortunately, Mamma's neighbors also have the same problem and attempt the same strategy to cover their tax bill. Mamma's rental house that she thought was worth $80,000 sells for $50,000 because the market is saturated with properties for sale. In the end, Mamma decides she has to sell a second rental house to cover her taxes for the year. Unfortunately, again, her tax liability for the following year is almost as high because now she has to pay long term capital gains on the two properties she sold to cover a tax bill - Mamma is getting taxed on money used to pay taxes. - This is government stealing our money.
Tax for unrealized gains should be followed by writing off unrealized losses!
And that's just the tip of the iceberg. Glad at least some people have common sense!
Imagine the power company charging you for the electrical outlets in your house that your aren't using but you could use.
Great video Leigh, I didn't grow up in Kentucky but I love the Mamaw/papaw and the layman explanation. I just finished "Hillbilly Elegy" by JD. As an American veteran this world is in a bad place right now with govt giving our money away to other countries, unemployed, undeserving and taking it from us who live here and have worked all their lives. I am 65 yo and cut fruit in orchards at age of 10, paper routes before school, Taco Bell during High school, and 2 jobs the rest of my life. I built my own home when I was 25 and I was a DOD welder and worked 800 hours a year of overtime. So now Harris thinks all the wealth I EARNED needs to be divided up and given to others! No wonder so many are on unemployment, this be like those waiting for reparations. Unemployed and reparation wishers just waiting. Tick Tock
I love this video. Most people conflate cash with net worth or assets held. Just like the grandma in this video, this is often not liquid cash that is easily accessible. This video addresses a very common situation that really drives home what an unrealized gain means, but because those who are fans of this policy will likely try to pull back a little bit on what they're asking for so that more people on board with it, I want to speak to the effect this has if they provide an exemption for primary residences.
The video gives an example of the grandma renting out another house or duplex as part of her retirement strategy. If she's required to come up with money to cover capital gains that haven't been realized, then she'll be forced to sell the house. The other issue is that unrealized gains don't represent the gains that are actually made. The government may use Zillow or county records to assess the value of the property and come up with a number higher than what grandma actually would get when selling the house. When people are selling houses because there is a deadline to pay a tax bill, they become a motivated seller, and will often sell their real estate at a price lower than market, thus leaving her responsible or a higher tax bill based on a government estimated valuation rather than a valuation based on what she actually sold for. Real estate would unaffordable to hold as an investment if this were implemented, which means that the only way you're living in some place is if you can buy it.
the other main vehicle for creating wealth for retirement is to invest in the stock market. If requiring people to pay unrealized gains, they will need to sell their stocks to pay the tax based on the assessed value the government puts on the unrealized gain. This assessment results in people selling their stocks, increasing the supply on the market, and resulting in those prices dropping below the assessed value, thus leaving people to pay a tax based on an assessed value higher than what they actually sold their stocks for. This will result in major shareholders who have built and maintained large companies to lose more of their control over the company which often devalues the company (and thus those shares) more. The majority shareholders in these large companies are typically in the form of pensions and retirement accounts under the management of large firms who are seeking to maximize their returns so that those who are investing and planning on retiring in their older age have money to live on.
Ultimately this kills the investing market and leaves people unable to save for retirement and will require the elderly to either keep working or to live with their children when they can no longer work. This is just a way to package communism behind what seems like a simple strategy to raise taxes, but it really makes it too expensive to hold any investments and kills any motivation to start or support starting any businesses. In short, acceptance this as a law is essentially accepting communism.
Another Marxist Democrat plan that they WIll implement if they can get their puppet Harris into office. These Marxists want to control our lives, Vote Trump to keep our capitalist economy,that is what made America Great and the shining light of freedom
Unrealized gains are not income, they're property. Property taxes are direct taxes that require apportionment at the federal level.
@eventhisidistaken they can't say it's " earned income" and taxable, no. It's not capital gains tax either because nothing was sold, nothing was " realized" the first year accountants aren't that dumb to say it is. If a dollar stock goes up to 10 dollars they would say that's a 900 percent gain and to pay up but if it goes back down to a dollar they would have you owe the IRS tax on the paper 900 percent gain even though nothing was realized.
They’ve been doing the same to family farms for decades.
Also, say, you buy 10 shares of Tesla at $100 / share ($1000 total). TSLA goes up to $600. You don't sell, but your shares are worth $6000 on paper, and Kamala taxes you 30% on the $5000 unrealized gain. Then, TSLA drops to $80. You lost $200, yet Kamala made you pay $1500 in taxes! So, instead of having $800, now you are *$700 IN DEBT!* Normally, you can only lose your initial investment, but now you can end up in a deep hole. With that kind of risk, no sane person would invest in stocks, currencies etc. It will destroy the stock market and with it, the economy. Without the stabilizing effect of currency trading, there will be more wars around the world. It is the single dumbest idea in human economic history. Even dumber than communism.
Every single person voting needs to see and understand this!!!!
Good talk. The government is constantly in our nickers regarding taxes. Houses and property are part of it. Is anything not taxed? I don't think so.
We are not yet taxed on on the co2 we breathe out and the methane gas we emit. We are not required to buy the monitoring devices (which is legal as long as they call it a tax) and pay taxes on to register the harmful greenhouse gasses.
It is an incompetent proposal.
@@crewmax4240 that never stopped communists. 🤷♂️
@@DrRock2009 Did they vote for it? We have a choice.
This tax on unrealized gains world crash the stock market. Assets would have to be sold to pay the tax. Then, the following tax season they get hit with capital gains tax on the assets they sold to pay the tax on unrealized gains the year before. Now they have to sell off more assets to pay the capital gains tax and the current tax on unrealized gains.
Spikes in stock sales cause market crashes.
An unrealized gains tax is a unconstitutional. It's a violation of the 16th amendment.
Remember it’s an idea and it’s only on people with assets of more than $100 million dollars and it wouldn’t apply to real estate but she failed to explain that. There’s apparently 9,000+ people in the USA with a net worth upwards of $100 million.
@@NeilHalsall-o5f And most of that kind of wealth is not liquid. It's in stock. If they have to sell off stock to pay the taxes, you'll get some market correction. Crash? Maybe, maybe not.
Not enough people are aware of what Harris is doing. We got to get the word out before its to late. Tell your friends and loved ones in a nice way.. Everyone needs to speak out and get the word out about this bad policy. Thank you for posting. I shared it with everyone I know.
Taxing people on what they DON'T have is criminal!