Tax on UNREALIZED gains is WAY WORSE than most have discussed. READ.

It is real simple. Only is taxing UNREALIZED gains nearly impossible to track and deal with, but it is really short sighted as well. Think of what I am going to say from both the position as a corrupt politician as well as a victimized citizen. It will make more sense that way.

Why?

Let's talk about what this will REALLY do.

Simple example:

Before: You purchased stocks in company B for $100,000. You hold that stock for 2 years (more than 1 year) and sell it for $200,000 (you were lucky). Well you made $100,000 because you purchased for 100K and sold for 200K. That would be considered a "Long Term" capital gain because you held that asset more than 1 year. Therefore your tax would be 15% on $100,000 or $15,000 (typical at the moment). Ok cool.

Let's say for sake or argument you held that investment instead for only 8 months and sold. Well now grasshopper you don't pay 15% but your normal tax rate that you pay each year because it is a "short term" capital gain. What is your tax rate, 28%, 38%, what? It most likely is not 15% (and I doubt you are in the 10% nominal tax bracket).

After:

You will pay your full tax rate for EVERYTHING, because even if it is not taxed monthly (UNREALIZED GAINS) all filings are done YEAR TO YEAR and you will pay then. So there will be no way to carry any investment now "Long Term" as your "gains" will have to be calculated "annually" as filings are exactly 12 months.

So with "long term" gains you were paying $15,000. Now, assuming a 28% tax rate, you are paying $28,000.

Do you feel screwed over yet?

And what happens the next year if your "investment" drops to $100,000.. can you take the entire "loss" immediately or will the "giant seagull" make you take this loss over 15 years?????

LONG TERM INVESTMENTS will be GONE.

I was going to write out all the ways this will totally collapse all U.S. investment (for me too, as I will move everything offshore). I will leave that for everyone in the thread.

This is THE death blow to the economy and individual prosperity.

This administration really is doing everything possible, in my opinion, to remove every last bit of financial independence from us as they can.

I personally have had enough.

Last Edited by Cryptographer on 10/26/2021 07:26 AM