Please explain what "unrealized capital gains" are.
I know what capital gains are, but prefixing it with "unrealized" could mean anything. Please elaborate if you know.
Edit: Someone else described it as capital gains that you haven't cashed out yet. In other words, you still own the stock and haven't sold yet to actually receive your gain.
It's basically the commie understanding of the stock market. A billionaire with a net worth of 50 billion $ holds a lot of stock. Yellen wants to tax the gains in the 50 billion $ right now and not when the stock is sold.
It's a very evil concept. Stock market gains that were made over time (sometimes decades) would be taxed now. A giant amount of money for the Dems to spend on all their pet projects.
A lot of the Keynesian economists want to invent new taxes to create their commie wonderland. This approach is a little bit different because the timing of the taxes is changed.
"tank the entire market" is an understatement. This allows foreign investors to obtain a lot of control (what they usually wouldn't get) of big corporations.
Yeah, its like if you have a house. You paid $1000 for it. but an appraiser now says it is worth $10,000. You have not sold it, so you don't have the money. But you now owe tax on 10k. Its fucking stupid. (this is actually how property tax works in most places)
Now lets say you pay tax on that for 10 years. Then you ACTUALLY go to sell it due to job joss and you need to move. But the market is shit, so you only get $1500. You don't get your money back.
This is actually one of the few things California got right is they lock in property taxes or else grandmas would live on the street.
I am using property taxes as an analogy for stocks/bonds/...
Everyone agrees this is stupid for stocks, but we do it for real-estate. I even couldn't get conservatives to see that it is the same. BUHT BUHT YOU GET MOAR MONEY LATER... Oh rly? you sure? ever heard of the housing boom and bust?
You buy a stock at $10. The stock appreciates to $100. As it stands now you only pay taxes on that when you sell it. In her plan you immediately owe taxes in the $90 increase in price - whether you have the money to pay or not. What will end up happening is that people will be forced to sell in order to pay the taxes. What happens when people are forced to sell? The price goes down. Multiply that by billions and billions of shares and you end up with an economic collapse.
You'd be forced to sell your assets to pay for gains you haven't realized, that's what it means. It's absurd and Yellen the Felon should be disqualified for even making such a suggestion... But China owns her so she'll be immune.
Let me explain to you how I, who holds significant assets, views the marketplace.
I own some stocks. I made a lot of money, but I haven't sold that stock.
The current way it works is if I sell, I owe capital gains. So I set some aside for taxes, and the rest I use to buy my groceries. But usually I want to make even more money so I don't sell. I just eat ramen.
I can calculate how much to sell each year so I can have a moderate income while still increasing my wealth over time. If I eat more ramen, I can eat more steak in the future. I pay a littke in taxes each year, and the money stays in the marketplace where it is used to drive the economy. My ramen habit helps people find jobs.
What she wants is for me to pay taxes on things I haven't sold yet. I don't have any money to pay those taxes, so it forces me to sell before I want to. And that drives the price down while forfeiting future gains I could've had if I waited. And it takes money out of the economy and causes jobs to evaporate.
Remember, commies hate wealth. They hate good jobs and investors. They want us all to work in their factories making tanks and eating gruel. They don't want us making iPhones and patriot.win websites!
It dries up the cash in circulation, thus there would be tighter government control on the monetary flow.
One more problem is that it inhibits compound interest. That is horrible for the people who saved money for their retirement. The people who are doing the right thing are getting punished.
"How to crash the stock market in one easy step."
Please explain what "unrealized capital gains" are.
I know what capital gains are, but prefixing it with "unrealized" could mean anything. Please elaborate if you know.
Edit: Someone else described it as capital gains that you haven't cashed out yet. In other words, you still own the stock and haven't sold yet to actually receive your gain.
It's basically the commie understanding of the stock market. A billionaire with a net worth of 50 billion $ holds a lot of stock. Yellen wants to tax the gains in the 50 billion $ right now and not when the stock is sold.
It's a very evil concept. Stock market gains that were made over time (sometimes decades) would be taxed now. A giant amount of money for the Dems to spend on all their pet projects. A lot of the Keynesian economists want to invent new taxes to create their commie wonderland. This approach is a little bit different because the timing of the taxes is changed.
"tank the entire market" is an understatement. This allows foreign investors to obtain a lot of control (what they usually wouldn't get) of big corporations.
Yeah, its like if you have a house. You paid $1000 for it. but an appraiser now says it is worth $10,000. You have not sold it, so you don't have the money. But you now owe tax on 10k. Its fucking stupid. (this is actually how property tax works in most places)
Now lets say you pay tax on that for 10 years. Then you ACTUALLY go to sell it due to job joss and you need to move. But the market is shit, so you only get $1500. You don't get your money back.
This is actually one of the few things California got right is they lock in property taxes or else grandmas would live on the street.
I am using property taxes as an analogy for stocks/bonds/...
Everyone agrees this is stupid for stocks, but we do it for real-estate. I even couldn't get conservatives to see that it is the same. BUHT BUHT YOU GET MOAR MONEY LATER... Oh rly? you sure? ever heard of the housing boom and bust?
https://www.investopedia.com/terms/u/unrealizedgain.asp
It means if you own Twitter stock and one day it goes up, you have to pay taxes on it.
Than when it goes down you are fucked. Than when it goes up, you have to pay taxes again.
This would be a death knell for the markets. Great Depression 2.0 is loading...
The greater depression.
Don't worry. The government will just print unlimited money and bail everyone out, no problem!
The Bigly Depression
You buy a stock at $10. The stock appreciates to $100. As it stands now you only pay taxes on that when you sell it. In her plan you immediately owe taxes in the $90 increase in price - whether you have the money to pay or not. What will end up happening is that people will be forced to sell in order to pay the taxes. What happens when people are forced to sell? The price goes down. Multiply that by billions and billions of shares and you end up with an economic collapse.
Great explanation. Glad I have pulled my Webull account and moved my 401k to low bonds and banks
You'd be taxed just for holding assets even if it makes no money. Dumb as fuck
You'd be forced to sell your assets to pay for gains you haven't realized, that's what it means. It's absurd and Yellen the Felon should be disqualified for even making such a suggestion... But China owns her so she'll be immune.
Let me explain to you how I, who holds significant assets, views the marketplace.
I own some stocks. I made a lot of money, but I haven't sold that stock.
The current way it works is if I sell, I owe capital gains. So I set some aside for taxes, and the rest I use to buy my groceries. But usually I want to make even more money so I don't sell. I just eat ramen.
I can calculate how much to sell each year so I can have a moderate income while still increasing my wealth over time. If I eat more ramen, I can eat more steak in the future. I pay a littke in taxes each year, and the money stays in the marketplace where it is used to drive the economy. My ramen habit helps people find jobs.
What she wants is for me to pay taxes on things I haven't sold yet. I don't have any money to pay those taxes, so it forces me to sell before I want to. And that drives the price down while forfeiting future gains I could've had if I waited. And it takes money out of the economy and causes jobs to evaporate.
Remember, commies hate wealth. They hate good jobs and investors. They want us all to work in their factories making tanks and eating gruel. They don't want us making iPhones and patriot.win websites!
It dries up the cash in circulation, thus there would be tighter government control on the monetary flow.
One more problem is that it inhibits compound interest. That is horrible for the people who saved money for their retirement. The people who are doing the right thing are getting punished.
They want us destitute
Been the Socialist goal, all all along. Cannot build a Marxist Society as long as the Middle Class still exists, it must be DESTROYED.
This "money changing" bitch needs to crawl back under the pile of cow shit crawled out from under.
Taxation without representation. Come and get it you fucking Neanderthal.
Another one who belongs in prison
Well this would completely ruin the entire US economy in one fell swoop.
Yup
There goes your retirement.
This bitch shouldnt be in charge of a piggy bank. What a bad choice.
Wow, mark-to-market accounting sure has taken a sharp turn!
And with that steep capital gains tax coming our way? Whew doggie!
What a time to live under a fraudulent socialist dictator!
That will move capital out of the market...
These people are fucking nuts
So they want to tax you on "imaginary" money. She's also going after Crypto currencies. How many hours are we into this administration?
OUR IRA's ARE NEXT.
Leave it to the Tribe to fuck it up as always.
Jesus Christ.
Source is Reuters (from 2 days ago): https://www.nasdaq.com/articles/act-big-now-to-save-economy-worry-about-debt-later-yellen-says-in-treasury-testimony-2021
This is old.
Maybe so but now it’s real and not a what if.
Define old.
Get what Dominion and some Detroit junkies vote for