Democrats to Impose a Real Tax on Imaginary Money
Democrats, including Joe Manchin, intend to impose an actual and real tax on people’s imaginary money. They are, however, claiming it will only affect the rich. Like the income tax when it was originally enacted, for now that is true. But just as the income tax spread out across the rich and middle class, so too will this real tax on imaginary money.
It is called a tax on “unrealized gains” or an “unrealized capital gains tax.” How it works is very simple.
You bought your house for $100,000.00. Over the next decade, your house’s value increased to $500,000.00. Therefore, you have $400,000.00 in unrealized equity, or capital, as your home increased that amount. Though you own your house, you still live there, and consequently you do not have the money from selling your home, the Democrats would tax you that $400,000.00, even though you have not sold the home and thus have not realized those gains.
For now, Democrats intend to apply this tax on imaginary money to the stock portfolios of the wealthy. But these are Democrats. Once they have set the precedent of taxing imaginary money for the rich, they’ll trickle down the tax to you and me, just as they have with the income tax.
This is a terrible precedent. It will also be deeply economically destabilizing. It will require the wealthy sell large amounts of capital to pay a tax on imaginary dollars. That will cause market turmoil. It will cause capital to flow to uncharted places as the wealthy seek to avoid the tax. More importantly, as Nancy Pelosi conceded this past weekend, it will not raise the money Congress needs in any measurable way. This is all about the future precedent of coming after you.
The Democrats will demand banks report your accounts to the IRS and demand the wealthy pay taxes on money they do not actually have. All of this will have profound effects on an economy wracked by inflation, shortages, and labor volatility. It will make the economy worse and not raise enough money for the Democrats’ spending binge.
Is it just me, or is this administration is doing everything in their power to strangle our economy, particularly the private sector? Years ago I remember reading that the end-game was to make capitalism such a miserable failure that people would embrace a socialist/communist model. I thought it was a stretch back then, but it looks like reality to me now.
I am SO %@$# OFF at the way this country is being run into the ground! Straw Man Biden has taken us from prosperity to post-Soviet Russia in a matter of MONTHS. We have criminals running rampant (including Hillary), stores are only half-stocked, our ports choked with provisions that we can't seem to distribute, gas is back up to Obama levels thanks to falsely-premised green initiatives, multiple government agencies are bald-faced lying to us, our southern border is an ATROCIOUS human tragedy, the good guys have been vilified while the bad guys have been justified, and our media is a propaganda arm. To be fair, I want to list all the good things they've done. You can find them in the blank spaces between comments.
But Erick, you have to look at the bigger picture. We are no longer getting "mean" tweets"..........