Why Democrats' Scheme to Tax Unrealized
Capital Gains Should Terrify You
American Thinker,
by
David Ennocenti
Original Article
Posted By: Magnante,
10/27/2021 3:32:51 AM
Our current secretary of the Treasury, Janet Yellen, is busy trying to find a way to tax wealth without calling it taxing wealth. She has eyes on taxing unrealized capital gains. What this means simply is taxing people for money they have not earned or received. That's it in a nutshell. That definition should leave even those who have never had a course in accounting or finance shaken.
Not only is Janet Yellen considering this, but the Democrat party is on board as well.
Reply 1 - Posted by:
Skinnydip 10/27/2021 4:00:46 AM (No. 958463)
Perhaps this is a better example. Suppose you buy a stock for $1000 on January 1 and by December 31 it has appreciated to $5000. You have made an unrealized capital gain of $4000 and would be taxed on that amount. You don’t want to sell the stock because it’s doing so well. Where does the money come from to pay the tax? Even if you could pay it, what happens if the stock goes back down to $1000? Do you get a refund of 100% of the tax you paid? With interest?
97 people like this.
Reply 2 - Posted by:
mifla 10/27/2021 5:43:56 AM (No. 958478)
The bigger the government gets, the more money it needs to operate. It is never enough.
Using her logic, if I plan on having four kids in the future, can I claim them as deductions now?
98 people like this.
Reply 3 - Posted by:
Flyball Dogs 10/27/2021 5:52:10 AM (No. 958484)
Great. She’s stupid AND greedy (AND she has power).
47 people like this.
Reply 4 - Posted by:
Fosterdad 10/27/2021 7:04:18 AM (No. 958530)
I'm still trying to figure out how it would be constitutional. The 16th Amendment says "The Congress shall have power to lay and collect taxes on incomes." An increase in the value of stock or real estate is not income."
47 people like this.
Reply 5 - Posted by:
Bur Oak 10/27/2021 7:17:34 AM (No. 958540)
This tax would put all family farmers out of business.
48 people like this.
Reply 6 - Posted by:
snapper451 10/27/2021 7:37:38 AM (No. 958556)
Poster #5 notes the impact on family farms. The Chi Coms are being allowed to buy US farmland at an unprecedented rate by the Xiden administration, as they cave on all things China. Wonder why, how much blackmail material do they have on Joe through Hunter? China is launching killer satellites while we are preaching CRT and firing police, while throwing those without the vaccine out of the military.
33 people like this.
This outrageous proposal is nothing new. Twenty some years ago, Congress implemented a tax on “deferred income”, meaning income that has not been received. That tax was levied in the form of a 1 1/2% hit on deferred income with no cap. The beneficiary of this new tax was supposed to have been the Medicare Trust Fund, an accounting conceit with no real assets other than government IOUs. The tax was imposed retroactively so those of us who had deferred income had to cut a check drawing on funds from sources unrelated to what was being taxed. The other screwball aspect of this tax derived from the deferral itself. Most deferred income plans were implemented to increase employee ownership in their own companies. If you deferred into common stock or options on that stock, you not only had not received a cash benefit but you also had no idea what the value of the deferral would be by the time you did receive a benefit. Think of the guy at Lehman Brothers who deferred into Lehman stock. He or she paid the Medicare Tax but never got the income.
Taxed Enough Already!
25 people like this.
Reply 8 - Posted by:
Otis Gill 10/27/2021 7:54:47 AM (No. 958566)
The goal is to eliminate the middle class. The only ones who will live well will be the governing elite.
39 people like this.
Reply 9 - Posted by:
Clinger 10/27/2021 8:02:18 AM (No. 958577)
They are inadvertently admitting that conventional attempts to raise taxes will fail to increase tax collections.
16 people like this.
Reply 10 - Posted by:
NamVet70 10/27/2021 8:02:52 AM (No. 958579)
This nation was founded in war against a foreign government that taxed these subjects without representation. Today the Democrats are planning to return the citizens to a status of subjects and the multi-billionaire elite they represent will not be subject to the taxes. Do we have the courage and strength of the patriots who handed us a free nation?
20 people like this.
In my lifetime, this has to be the most brazen attempt at raiding an empty wallet that I have ever seen. They don't have the guts yet to raid the 401k accounts yet, but they are going to hold everyone up for money that those folks haven't even seen yet in their bank account. How many retirees depend on those stock holdings as part of their retirement? This is going to be terrifying indeed.
24 people like this.
Reply 12 - Posted by:
NorthernDog 10/27/2021 8:40:05 AM (No. 958629)
I have to give a little bit of credit to old-time Democrats who didn't blush at taxing their own constituents. In 1968 the tax bracket for $10,000 of income was 32%. At $14,000 in was 39 %. By $25,000 it was over 50%! Inflation eventually pushed most taxpayers over the 50% bracket. Those massive taxes on the middle class eventually made the Dems terribly unpopular. So today they cook up other schemes to pick your pocket.
12 people like this.
Reply 13 - Posted by:
Paperpuncher 10/27/2021 8:42:11 AM (No. 958633)
Adding to #1, if you pay tax on the unrealized capital gain of $4,000 then the market crashes and you hav an unrealized capital loss of $4,000 is the government going to return the tax you paid on $0 capital gain? I think NOT!
14 people like this.
Reply 14 - Posted by:
marlon 10/27/2021 8:47:32 AM (No. 958642)
I know number one's question was rhetorical but another example is I sent my state taxes in at the end of August and was due a refund. It's not even showing up in their system yet. My federal taxes were filed on October 15th and the check to them which is 9x larger than my refund due was cashed in less than a week. Pretty sure when I do get my state refund there won't be any interest paid to me either
14 people like this.
Reply 15 - Posted by:
FormerDem 10/27/2021 9:11:12 AM (No. 958669)
she thinks we should reorganize liberty and privacy around a goal of facilitating taxation. that is monomania. taxation is not the organizing principle of society. surprise!
4 people like this.
Reply 16 - Posted by:
Rumblehog 10/27/2021 9:14:48 AM (No. 958675)
That Tree of Liberty is thirsting once again...
14 people like this.
Reply 17 - Posted by:
Goose 10/27/2021 9:17:13 AM (No. 958682)
So they tax your asset this year. If you still hold that asset next year, they will tax it again. What a country!
8 people like this.
Reply 18 - Posted by:
red1066 10/27/2021 9:44:46 AM (No. 958724)
How would they determine at what rate one's future returns would be? I guess then it would be time to put one's money back into the good old savings account where the rate of return would less than .5%.
6 people like this.
Reply 19 - Posted by:
snowoutlaw 10/27/2021 9:48:40 AM (No. 958732)
The Democrats/commies have been wanting to get at our 401k for years, I am sure this is just the first step in that direction.
13 people like this.
Reply 20 - Posted by:
marbles 10/27/2021 10:12:48 AM (No. 958756)
How about your house.it's gone up in value over the years . You live a nice life, living within your budget on a fixed income. The govt says that you have pay taxes on the market value of your house. Same thing as the family farm, you would have to sell your house and go I don't know where, to pay the taxes.
8 people like this.
Reply 21 - Posted by:
bighambone 10/27/2021 10:19:09 AM (No. 958762)
In the small print would Members of Congress be exempt from this proposed tax?
13 people like this.
Reply 22 - Posted by:
D S Craft 10/27/2021 10:45:06 AM (No. 958787)
There's going to be a reckoning.
6 people like this.
Reply 23 - Posted by:
Philipsonh 10/27/2021 11:10:54 AM (No. 958816)
If made into law, this will absolutely CRASH the stock market.
5 people like this.
Reply 24 - Posted by:
msjena 10/27/2021 11:12:43 AM (No. 958818)
First, they came for the billionaires...
10 people like this.
Reply 25 - Posted by:
DVC 10/27/2021 11:28:59 AM (No. 958839)
Extremely destructive.
Extremely unfair, and would rip the guts out of any investment strategy.
Where does the money to pay these gains come from until you sell the stock, or home, or whatever?
6 people like this.
In his 1928 book, "The Intelligent Woman's Guide to Socialism and Capitalism" Socialist Bernard Shaw explained why a "wealth tax" (always a popular idea with naïve socialists) wouldn't work. Even Shaw—once infatuated with Marx's daughter—had by then evolved beyond Marx's crude ideas of economics. However, he made the error of basing his arguments on the beneficent motivations he attributed to bureaucrats!
0 people like this.
This is tantamount to the bereaved parents of a fatally killed bank robber suing the popo 'cause the little angel was only 22 and could have become a millionaire selling his mix tapes out of his stolen car trunk at the local sh×t-n-git.
T. Boone Pickens comes to mind when he financed that cow pasture with seats in Stillwater by buying low on life insurance policies and collecting high.
1 person likes this.
Reply 28 - Posted by:
DougTN 10/27/2021 1:24:57 PM (No. 958966)
Insane. Taxation of unrealized income will have the same affect as nationalizing the economy and depleting all wealth. Year two they will not have any tax revenue left. Wealth is dependent on rule of law, right to ownership and the belief that the rules are predictable into the future. The stock market will deflate to zero, investments will disappear, and what is left of the economy will go underground.
4 people like this.
Reply 29 - Posted by:
zoidberg 10/27/2021 1:27:35 PM (No. 958970)
They're saying the quiet part out loud: that they're not going to let a little thing like the Constitution stand in the way of their power grab.
4 people like this.
Reply 30 - Posted by:
justavoter 10/27/2021 4:44:29 PM (No. 959133)
The Supreme Court has ruled on this but what does that matter. No more Stari Decisis. This has been ruled unconstitutional in the past.
2 people like this.
Reply 31 - Posted by:
justavoter 10/27/2021 4:47:58 PM (No. 959137)
252 U.S. 189. Congress was not empowered by the Sixteenth Amendment to tax, as income of the stockholder, without apportionment, a stock dividend made lawfully and in good faith against profits accumulated by the corporation since March 1, 1913. P. 252 U. S. 201. Towne v. Eisner, 245 U. S. 418.
But so much for old rulings
2 people like this.
Reply 32 - Posted by:
QuietVoice 10/27/2021 5:33:09 PM (No. 959178)
Biden lets in 100,000s of illegals with no income who are dependent on welfare. Biden is not defending/protecting U.S. Citizens. Who is our demented President serving? Who is backing the idea of stealing money from citizen investors to support these undocumented, unvaccinated, jobless, homeless potential voters? In my estimation, we cannot impeach Biden and his invisible gang of insurrectionists fast enough!
2 people like this.
Reply 33 - Posted by:
HRJUNIOR 10/27/2021 7:25:15 PM (No. 959262)
Let us gather the names of the people who voted for Joe Biden and begin to execute 1500 each day starting on November 1. 2021 and see how long it takes for the rest of them to repent and ask for mercy.
0 people like this.
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