Vivek Ramaswamy does a really nice, succinct job of deconstructing Kamala Harris’s scheme to levy a 25% tax on “unrealized” capital gains in a single tweet here:
Originally, this comment was intended to give Vivik credit where credit is due. In fact the first time I was introduced to him through another fringe platform from a Twitter crosspost about a year or so ago. His context was so radical to me that I knew he was for real but would most likely be highly ridiculed by MSM to the point of obscurity in the minds of the public.
I'm very impressed how he stuck with his convictions even after not achieving his goal to become POTUS. But it's more realistic to become relevant in another capacity, which is evident within the RNC. His running podcast is equally respectable.
Vivik is the real deal as is to DJT & JDV and you really couldn't imagine him in any other capacity other than a true leadership role.
This is one good way to remove you from what small fortune you might have accumulated. And one good way to take over all you own when you can't pay your tax bill. Like many of us baby boomers - all our assets are tied up in our home and land, with the old theory of "buy land" it's the best investment! Guess that's about to change - I will own nothing and be happy.... oh well - pretty soon the nursing home will get it all anyway!! Ha Ha - I'm laughing because I really feel a need to cry... hopefully Kreepy Kamala (she's well past weird!) won't win!
You'll get a potential tax credit that you might be able to recover in future years, maybe, if the value moves in the right direction.
See the treatment of Incentive Stock Options and the Alternative Minimum Tax (AMT).
Even though exercised incentive stock options are not taxable as long as one retains the resultant shares, the difference between the option price and the current stock value are taxable under the Alternative Minimum Tax system.
So a worker for a startup happily exercises 500 options at the option price of $10 per share, when the stock price is $1010. He now has 500 shares of company X, valued at $1010 per share. He'll hold the stock for a while, he thinks. He owes no tax until he actually sells the shares.
Except.... under the AMT rules, he now owes tax on 500 X (1010 - 10) = $500,000, even though he hasn't received any money whatsoever and has actually spent $5000.
This is already in the tax code. See IRS tax form 8801.
Yeah, like JF here says, it read like a recipe for disaster for homeowners now and in the future.
A similar scenario regarding property taxes is that they are already providing the counties and states with sales & property taxes for their capital to fund that local government machine and pay employees. There's never enough money and always more policies for higher costs and expansion instead of better resource management.
Let's see...If I were a communist, and I wanted to turn America into a communist country without anyone noticing, I might tax ownership of property to the point where no one could afford to own it. The government takes over the property and, voila, we become a communist country without a revolution.
As they say, you can vote your way into totalitarianism, but you have to shoot your way out.
Vivek's treatment was OK. Mine is better, mainly because I use the example of a teacher and her mutual fund, rather than a "startup founder who has to sell his millions prematurely."
We don't need to explain this to venture capitalists and founders. We need cops, teachers and firefighters to understand this tax will hit THEM, not "the billionaires" who will most definitely find ways to avoid it.
Thank you, Christopher for introducing me to you and your Substack!
I'm definitely interested in this perspective comparison with that scenario too.
In fact it's important to measure what impact any proposal of policy has across the entire spectrum. Because like O'Biden's agenda through Mrs. K.H. - the housing problem my well only receive a bandaid solution and be only fractionally beneficial to qualify as true. Notwithstanding the full spectrum where policies proposed in haste without the full democratic processes - usually do more harm than good. There's a catch, unfortunately the process takes time and is intolerable to instant gratification socioeconomics.
This is clearly not income; the fact that there’s an income limit on whom it applies is immaterial. If venture capitalists are forced to sell, it could be catastrophic to the entire economy.
Maybe if we could get her to treat a fetus as an unrealized gain taxable at 20% we could end abortion. Taxes over blood sacrifice? Probably not. We’d end up with only the tax.
Originally, this comment was intended to give Vivik credit where credit is due. In fact the first time I was introduced to him through another fringe platform from a Twitter crosspost about a year or so ago. His context was so radical to me that I knew he was for real but would most likely be highly ridiculed by MSM to the point of obscurity in the minds of the public.
I'm very impressed how he stuck with his convictions even after not achieving his goal to become POTUS. But it's more realistic to become relevant in another capacity, which is evident within the RNC. His running podcast is equally respectable.
Vivik is the real deal as is to DJT & JDV and you really couldn't imagine him in any other capacity other than a true leadership role.
This is one good way to remove you from what small fortune you might have accumulated. And one good way to take over all you own when you can't pay your tax bill. Like many of us baby boomers - all our assets are tied up in our home and land, with the old theory of "buy land" it's the best investment! Guess that's about to change - I will own nothing and be happy.... oh well - pretty soon the nursing home will get it all anyway!! Ha Ha - I'm laughing because I really feel a need to cry... hopefully Kreepy Kamala (she's well past weird!) won't win!
Does the government pay you back if it goes down in value? I think not.
You'll get a potential tax credit that you might be able to recover in future years, maybe, if the value moves in the right direction.
See the treatment of Incentive Stock Options and the Alternative Minimum Tax (AMT).
Even though exercised incentive stock options are not taxable as long as one retains the resultant shares, the difference between the option price and the current stock value are taxable under the Alternative Minimum Tax system.
So a worker for a startup happily exercises 500 options at the option price of $10 per share, when the stock price is $1010. He now has 500 shares of company X, valued at $1010 per share. He'll hold the stock for a while, he thinks. He owes no tax until he actually sells the shares.
Except.... under the AMT rules, he now owes tax on 500 X (1010 - 10) = $500,000, even though he hasn't received any money whatsoever and has actually spent $5000.
This is already in the tax code. See IRS tax form 8801.
Yeah, like JF here says, it read like a recipe for disaster for homeowners now and in the future.
A similar scenario regarding property taxes is that they are already providing the counties and states with sales & property taxes for their capital to fund that local government machine and pay employees. There's never enough money and always more policies for higher costs and expansion instead of better resource management.
Let's see...If I were a communist, and I wanted to turn America into a communist country without anyone noticing, I might tax ownership of property to the point where no one could afford to own it. The government takes over the property and, voila, we become a communist country without a revolution.
As they say, you can vote your way into totalitarianism, but you have to shoot your way out.
https://christophermessina.substack.com/p/kamala-is-this-stupid-the-evidence?r=erlb4
Yup
Vivek's treatment was OK. Mine is better, mainly because I use the example of a teacher and her mutual fund, rather than a "startup founder who has to sell his millions prematurely."
https://christophermessina.substack.com/p/kamala-is-this-stupid-the-evidence?r=erlb4
We don't need to explain this to venture capitalists and founders. We need cops, teachers and firefighters to understand this tax will hit THEM, not "the billionaires" who will most definitely find ways to avoid it.
Thank you, Christopher for introducing me to you and your Substack!
I'm definitely interested in this perspective comparison with that scenario too.
In fact it's important to measure what impact any proposal of policy has across the entire spectrum. Because like O'Biden's agenda through Mrs. K.H. - the housing problem my well only receive a bandaid solution and be only fractionally beneficial to qualify as true. Notwithstanding the full spectrum where policies proposed in haste without the full democratic processes - usually do more harm than good. There's a catch, unfortunately the process takes time and is intolerable to instant gratification socioeconomics.
This is clearly not income; the fact that there’s an income limit on whom it applies is immaterial. If venture capitalists are forced to sell, it could be catastrophic to the entire economy.
The stock market would drop to unseen depths. Black Monday would be a blip next to this. Every pension fund is bankrupted overnight.
Every baby boomer with stocks they rely on to live is eating cat food overnight.
Maybe if we could get her to treat a fetus as an unrealized gain taxable at 20% we could end abortion. Taxes over blood sacrifice? Probably not. We’d end up with only the tax.