US Treasury Secretary Janet Yellen Proposed a Tax on Unrealized Capital Gains; Now They Want to Tax Money You Haven’t Seen Yet, If Ever
The US Treasury Secretary, Janet Yellen, has said in an interview that the Biden administration is looking for ways to pay for the $3.5Trillion “infrastructure” bill. One such way is to look further into taxing capital gains differently. They now want to tax your unrealized capital gains.
For those not into dealing with investments, currently, you can be taxed for the money you make when selling shares in a company. That tax can differ depending on whether the investment sold falls in the short-term or long-term gain category. What the Biden administration is attempting here is to tax you every year you hold onto a stock or property on the amount the value went up. This is without you selling it.
The question, as with any government tax, is where does it end? Right now, they SAY they are only targeting billionaires but we all know that they never stop. Not to mention, why is it ‘okay’ to target anyone at all?
Take this for an example to watch out for. Let’s say they start taxing you based on your home value change every year. You’d be taxed for that value increase, without even selling. How do you pay for something without having the money? Now you’d have to start selling other investments just to pay for another’s value increase.
What happens if the value DECREASES? Well, we already know the answer to that. Government never gives you money for things like this. They also never REMOVE taxes.
Now apply this same thing to something like cryptocurrencies. Are you HODLING onto Bitcoin, Dogecoin or another crypto? That value increase every year is something you’d have to pay a tax on. You’d probably need to sell some in order to pay that tax. These are very basic and crude examples, but examples that are very real nonetheless.
Wealth managers are already warning this tax will simply lead to investments moving to foreign markets like India, which is a thriving market.
Watch and listen to the words coming straight from the horse’s mouth.
What are your thoughts? Are you okay with this as long as it targets billionaires? Or do you realize that your money is your money and the government needs to spend less? Let us know below.