Author: johnbarleycorn12

Kamala’s New Tax

Posted on by johnbarleycorn12

Tom Woods,

You may have heard that Biden and Harris want to tax “unrealized capital gains.”

You may not know what that means, but you (rightly) suspect it’s a terrible idea.

Here’s what it means (mathematical example shared with me by a friend):

(1) January 2020, you buy 100 shares of Zoom stock at $75 per share.

(2) That stock ends the year at $350, which means you made a gain of $27,500. But it’s an unrealized gain, because you didn’t sell the stock. You still have it.

(3) Kamala would tax you 75% on that $27,500 that you don’t actually have.

(4) Since you don’t have the cash to pay it (you never sold the stock, remember, so you never actually experienced this “gain”), you withdraw from your savings.

(5) You hold the stock until August 2024, when it’s only $60 a share.

(6) You decide to sell because this is the most you think you’ll ever get for the stock. You sell at a loss (remember, you bought it at $75) at $60.

(7) Oh, and those taxes on your “unrealized capital gain”? Well, you ended up with a loss, not a gain, but Kamala keeps your money anyway.

By the way, when we post on this topic Facebook directs us to a “fact check” that says, “The Harris campaign did endorse a plan that would tax unrealized capital gains, but it would apply only to a subset of high-net-worth Americans worth $100 million or more.”
This is exactly what they told us about the income tax over 100 years ago: only the super rich will pay it.

But even if this new tax did stay confined to the super rich and never expanded over time, we are nevertheless all affected by it, and not just people at the top of the income scale.

As a wealthy fellow on Twitter put it, nobody is going to keep putting his money in the markets, as opposed to tax-sheltered investments, straight-up cash, etc., if he’s going to be taxed 25% on gains he never realizes, and when there’s no way to claw those taxes back if (as in the example above) those gains become losses.

What’s going to happen to the little guy’s Roth IRA, he says, when trillions in capital flee the markets simultaneously? He’ll still be fine, because he’s sitting on a pile of cash.

But the envious losers who cheered on this tax because they thought it wouldn’t affect them will be the ones in the bread lines.

Do We Finally Have a Peace Ticket? – LewRockwell

Posted on by johnbarleycorn12

Just as the Harris/Walz campaign was looking for a boost from the content-free Democratic National Convention last week, real drama broke out that pulled the country’s attention back toward Republican candidate Donald Trump. Rumors had been swirling for days that Robert F. Kennedy, Jr. might suspend his independent run for the White House and endorse Donald Trump and on Friday he did just that. In his powerful speech explaining the decision, RFK, Jr. made it clear that suspending his run was difficult, as was leaving a Democratic Party that has been almost synonymous with the name “Kennedy” for many decades. … Continue reading →

Source: Do We Finally Have a Peace Ticket? – LewRockwell

Breaking Economic News

Posted on by johnbarleycorn12

Inflation is caused by deficit federal spending. When the government spends more money than it brings in, it creates debt. They put more dollars into the money supply, which makes each dollar you have worth less.

We are over 35 trillion dollars in debt, the interest on that debt is one trillion dollars a year, which is more than the defense budget. So when you think of it inflation is just another tax and you wind up with less money because each dollar buys you less. Investors lose money because their dollars are worth less. It is a cruel joke for politicians to ask for more taxes from anyone when they create debt.

Both political parties have done this and neither candidate for president has addressed this major problem, which tells you they do not really care. Market forces caused by debt, increase inflation not price gouging. What I am telling you here is verifiable and very basic information, not complicated. Be informed so you can demand more from our current political class.

A balanced federal budget will cure many of the ills we are experiencing. If you ran your business or your personal finances like the federal government does, you would be bankrupt and homeless, oh wait, Americans are becoming bankrupt and homeless in record numbers. Cause and effect. Know the cause, know and feel the effect.