Proposed US $5 trillion tax hike includes tax on unrealized gains
Unrealized means 'fictional' and like fictions of law does not exist.
Disclaimer
I personally do not advocate any process or procedure contained in any of my Blogs. Information presented here is not intended to provide legal or lawful advice, nor medical advice, diagnosis, treatment, cure, or prevent any disease. Views expressed are for educational purposes only.
Highest US tax hikes in four decades
Aug 31.24
Lean Petrova explains the impact of proposed $5 trillion tax hikes on individual taxpayers, investors and the United States economy.
What are unrealized gains?
An unrealized gain or unrealized loss is the change in value of an investment such as a stock, bond and other assets such as your residence; the change in value of an asset you purchased but not yet sold. It is the difference between the price you paid for it and what the market is willing to pay for it at any given moment in time. It is effectively a paper gain or a paper loss. It is not considered to be income for tax purposes or for any other purposes in finance or accounting because it is not real, it doesn't exist and given the volatility of the market your unrealized gain today may actually turn into an unrealized loss tomorrow; there's nothing to tax.
Taxing unrealized gains raises the tax rates you actually pay by making you prepay taxes on gains you have not realized yet. It could harm the economy by discouraging investments, which in turn would slow economic activity and ultimately slow economic growth, and encourage investors to move their money overseas seeking beneficial tax havens.
When we hear that such tax won't apply to those making less than $400,000 we should look at the bigger picture. Supporting the tax on unrealized gains for any income level is a slippery slope. There is no guarantee the threshold won't be lowered down the road, to ultimately include anyone far below that high income earner category.
The real debate
The debate over taxes on unrealized gains is not so much about taxes as such, it is a debate about what constitutes income and once that is redefined similar to how the definition and formula that measure recession were recently changed, once that's adjusted all options will be on the table to that end. The tax on unrealized gains is the tip of a much bigger $5 trillion tax plan.
Top three items
1] A 28% federal corporate tax rate. When corporations pay higher taxes they increase prices so consumers end up absorbing the increase. Tax is a business expense to corporations and they are not going to allow it to cut into their profits. Shareholders will either decrease production, increase prices or lay people off. They will do anything to maintain the profit margin they want for as long as they can.
2] The budget proposal supports 44.6% capital gains tax and dividend tax rate. It’s the end consumer that will end up paying for the increase in taxes.
3] The budget proposal seeks to levy higher taxes on the production of oil, gas and coal. This increase intentionally and deliberately, [emphasis] this intentionally targets the US fossil fuel industry as a whole. So, not only are they subsidizing the sustainable energy industry, which I'm not against it, we should do it by all means but we should do it wisely. They're now hitting traditional energy infrastructure with harsh tax rules, in this specific case, the new tax is estimated to bring in for the government an additional $97 billion in taxes over the next decade from fossil fuel producers who will cover the biggest portion of that $97 billion.
You know who will actually pay the taxes, every consumer.
Who is Bharat Ramamurti
Bharat Ramamurti, an American attorney and political adviser, joined Kamala Harris' presidential campaign after she secured Biden’s endorsement. Bharat is a key player in Vice President Kamala Harris' campaign.
Bharat Ramamurti favours moving away from fossil fuels. He recently made headlines when he faced off with CNBC over the Biden-Harris proposal to tax unrealized capital gains. The network said the plan was "unfair" and "against the law," causing a heated debate and few eye rolls.
PM Modi Peace Role, Harris' Tax Hikes & Trade Wars
Continue at https://lenapetrova.substack.com/p/pm-modi-peace-role-harris-tax-hikes
Please, dive deeper
During a May 2024 Zoom call, Derek Nobrega, retired senior officer in Canada’s military after serving 26 years and 13 years in the intelligence sector, said Canadian Senators were bought. Each of the 105 Senators was offered between $3 and $300 million of which 15 declined. I would be remiss if I failed to ask
“How else can ruling entities pay the astronomical cost of deceiving, coercing and reducing 8 billion citizens, except by getting citizens to consent, and fund, centralization of all power and control to a manageable level of hybrid slaves?”
Maxims of law
Maxim is an established principle or proposition.
1. A principle of law universally admitted as being just and consonant with reason.
2. Maxims in law are somewhat like axioms in geometry. 1 Bl. Com. 68. They are principles and authorities, part of the general customs or common law of the land; and are of the same strength as acts of parliament, when the judges have determined what is a maxim; which belongs to the judges and not the jury. https://famguardian.org/Publications/BouvierMaximsOfLaw/BouviersMaxims.htm
Ignorance of those things one is bound to know does not excuse.
He threatens the innocent, who spares the guilty.
He who is silent appears to consent.
Every law has either been created by consent, or established by necessity, or confirmed by custom.
Necessity overcomes the law; it breaks the chains of justice.
No one is beyond the law. TY!
Without prejudice and without recourse
Doreen Agostino
Our Greater Destiny Blog
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