You bought 100 shares of Zoom stock in Jan 2020 for $75 per share
Ends year at $350 per share but you didn’t sell giving you an unrealized gain $27.5k
Under Kamala’s plan you owe $6,875 in taxes (25% of $27.5k)
But you didn’t sell so you don’t have the cash. you pay taxes out of savings
You continue to hold until August 2024. Finally sell for $60 per share
You LOST $1,500 on the stock PLUS you paid the taxes on the $27.5k of “gains” you never actually received since they evaporated
The initial tax proposal is only targeting $100M+ but that’s just the start. It opens the gates to lower the threshold whenever they choose
Before you know it every person who owns a stock is paying this tax
People stop buying stocks. Companies have less capital to invest into new products and develop technology
Economy tanks. Jobs lost
What a joyful future
Even under the MOST CHARITABLE viewing,
This forces large investors to focus EVEN MORE on short term quarterly success rather than long term company value because they’re going to be forced to sell the stock at tax time anyway.
They’re already doing it, it this is the nail in the coffin that institutional investors will be fully converted to parasites with negative interest in long term value
Naturally, it’s the people who work for these companies who will suffer the consequences of management being forced to bend to this investment demand.
Like everything democrats do, they think they’re punishing one group, but it will massively harm the people. This is what happens when you write laws to punish certain people rather than restrict government intervention in the market
Im wondering of Wall Street wants this to weed out the "homegamers" retail traders that are having better success because of improved trading bots. The institutional traders have been using bots for years 80% plus are bot influenced.. Some of these retail traders are making 1 to 3 k a day and the the brokers might be feeling it. If you look at the movement of the markert from October of last year it seems like its been behaving erratic and the big boys break known structure to shake off the traders trades.
Does this include crypto?
Yes. You better cold wallet that crypto in your prison wallet
No.
Just use Monero or Dero
Wonder how the bitcoin ppl will react to that news lol.
Most of us aren’t billionaires so we’re cool for now, kek. Imagine her next step would be a similar unrealized gains tax for millionaires, and eventually, the rest of us
Isn't that the order of progression? First get the wealthy not in your pocket, then get the swine like us. This is ultimately for us.
Long ago. The claim was millionaires didn't pay taxes. So they passed a law. The alternative minimum tax.
For some reason, I as an hourly employee, have had to calculate and pay this tax 4 times in the last 15 years. While I haven't had fear of starving, I am not rich. So whenever they go after millionaires, it is really you that is the target. Because millionaires have given more to politicians after these alleged increases. They will not punish those who flood their coffers.
Don't think so.
Of course it does, any gains in crypto is also considered capital gains.
It absolutely does. Id venture to guess crypto is the primary reason for pushing this bill in the first place. Remember, this isn't a new idea, it's been pitched before.
Damn. I was hoping we cannot track like Morena.
Crypto gains show up on my tax form.
They propose to tax you 25% at end of first year, what happens at end of 2nd year (and on and on) if you don’t sell? Are they expecting you to pay 25% each year there after buying it?
She is a commie.
The Income Tax was only supposed to apply to the top 1%, but look where we're at today. Once the taxation camel gets it's nose under the tent, the government will take full advantage of it.
I don't think those 86,000 IRS agents are going to go after the big donors to the democrat party.
That's right. How it starts.
That's how you get rid of capitalism
From within.
Oh boy I can't wait for every wealthy investor to send their money to other countries instead of investing here at home. I'm sure the good old Karen government will come in to fill that gap in the market... But will of course take equity in mind and make sure only their loyal Party Members get the benefits of my tax dollars.
Isn't that what the communists have been doing since WWII? They have been undermining our society, using our freedoms against us. They've infiltrated and completely control our educational system, our main stream media. They've weaponized our laws, corrupted our institutions of government and our politicians. They have bought up our farmland, taken over much of our food supply, stolen our intellectual property, siphoned off our jobs, divided us by race, creed, sexual preference. Now, they destroy our economy through money printing, over taxation, regulating every facet of life. The Uniparty, led by the left are all communists. And now we are surprised?
Not at all. Now they are just blatant.
and people scratch their head's, thinking why would they do this? This must be a 'mistake' they'll 'adjust' so it will 'work'.
It isn't a mistake. This is the plan. They get heir hooks into the 401k's. Good buy American Pie
Oh yes, it's true.
What happens when people stop investing the private sector? The private sector collapses leaving only the Gov sector. When the only business is Gov business then it is effectively Communism
We always say buy local and small.
I enjoy reading, and rarely post. But I couldn't resist posting in this situation. Brian Beers did a fairly good job, but omitted a really crucial aspect.
When you must recognize gain in his example, your new basis is $350. Your basis would not be the $75 that you originally paid. His example needs to include that aspect of basis adjustment.
When you later sell for $60, you then have a $29,000 loss.
Still a massive nightmare because now you must amend your prior year income tax return and request a refund that will show up 1 year later. You must pay your CPA to prepare that return (because the tax assembly program is going to botch it). Then one of those 70K+ IRS agents is going to audit your return because you amended it, and they will find something else.
The analysis goes off the deep end if you sell at a loss more than 3 years later, because you can only amend so many years back.
Dumber than dumb policy, for many, many reasons. You can tell when someone that knows nothing about taxes takes a stab at tax policy.
William Bernstein wrote a great book that included a wonderful premise that suggested the British struggled with early entity investment (the South Seas Trading Bubble) due to short-term investment philosophy, and the Dutch excelled at it due to long-term investment philosophy. That policy suggested by Harris would be a major set-back that history has already proven a failure.
Thanks for the explanation. I don't even go mess with taxes. What a bunch of shit. I sold all my stocks a while back except for DWAC. Not messing with it at all right now.
I have very little of value to add to the Board, but enjoy reading. When it comes to taxes, however . . . there just are not a lot of people that will have a higher understanding of the Internal Revenue Code and tax concepts. So literally, for the first time ever, I was able to add some value here.
Politicians have created the mess in the tax Code that we deal with today. I am a firm believer that no one should meddle with the Code unless they understand taxes. Oh well, we have so many other problems that need fixing. But I just want to spend 3 min. with Trump and request that he please start appointing Federal judges that understand taxes. Bush started appointing people that did not understand taxes, and here we are 20 years later with a dysfunctional judiciary from top to bottom when it comes to anything related to taxes, finance, or business.
Thank you. You could write him. He does respond.
Much better connected people than I should provide that information to Trump.
I do think he has someone that responds for him, but I do not think for a minute that the person on the other side of the internet is presenting general population ideas to Trump.
I fall more into the category if I have what I think is a great idea, then a few thousand other better connected individuals are most likely having it at the same time, and someone is going to get that idea to a well-connected individual who can make a good decision.
I love your optimism, though!
I am serious. Write to him. I have seen people getting respond letters on X from him. Not just one person. Quite a few in fact.
You have something of value. Write to him.
Are you going to be able to write off unrealized capital losses??
If so, the gov is going to lose money
BIG LEAGUE
I won't even mess with them. Just buy precious metals and buried.
I can see it already, a market ETF that is purely designed to "lose" money in such a way as to write off all actual income from the books.
Excellent explanation. As usual, these commie ideas will never actually get passed by congress, even the democrats own stocks and aren’t stupid enough to tax themselves like this.
Bet you exception will be made for them.
Did you think the hiring of 78,000 new IRS agents was for fun? “Come on new IRS agents, let’s get to work” says Kamala Harris.
Yes. Her doing most likely.
Sounds a lot like property tax.
Oh I know about that.
excellant analogy.
I bought my house in 2009 for $400k. Today it's valued at $1.2m.
That's $800k in unrealized gain. 25% of $800k is a $200k tax.
Oh. You cannot freeze your property tax, could you?
Exactly what I was going to do. Great info.
Let me guess, there will be an exception for handing your money over to a company like…. Oh I don’t know…… BlackRock or Vanguard so they can invest it for you.
Bet you are correct.
I just read how it is written and it says you only pay on it if you take loans against the unrealized gains because then you're using them as an asset. Also, it only applies if you make more than $2.2m a year in payroll.
Bunches of people would be hit by it still.
Somebody post this on Superstonk, it seems the majority there are anti-Trump, and they ALL are holding (hodling) $GME. It will affect them.
Great. Please share.
Wouldn't this affect retirement accounts, including IRAs and 401Ks, as well?
I don't know. I am just a brain dead.
you will own nothing and you will be happy.
The truth is, own nothing and be very grumpy. LOL
A lot of American workers have done well via their companies stock option plans, what happens to them? Taxed on the options as they rise in value?
I came across a buy who was a cleaner at Microsoft, he was a millionaire from his options and that was 20 odd years ago. They do not want you to be independent, they want you to be dependent.
Hence they demonize crypto because they cannot control. Yes, they want you dependent and be serfs