Quote of the day—sacrebleu14 / SA Hinchcliffe @sacrebleu141

Y’all that voted for Biden?

You were warned

yes, unrealized gains tax is going after you increased home value before you even sell

To punish you for owning a home

sacrebleu14 / SA Hinchcliffe @sacrebleu141
Tweeted on October 25, 2021
[The most recent news I read said the tax would “only” apply to billionaires. Luckily I, my wife, my kids, and my step-kids are all multi-trillionaires so we should be able to avoid it for at least a while.

The billionaires will move their wealth out of the country to escape the tax. And before too long the politicians will say they failed to get the (claimed) desired effect and they will expand the range of the tax to include us and many others. Even if they don’t do that, inflation and probably hyper inflation will push more people into the billionaire class.

Yes, Biden voters were warned, but if the election was a fraud, and with all the fake stories about anyone opposed to Biden’s by the mainstream media you can’t really put the primary blame on the voters. If it comes down to having to shoot yourself out of socialism I’d like to suggest you let the Biden voters freeze in the dark rather than waste your ammo on them.—Joe]


14 thoughts on “Quote of the day—sacrebleu14 / SA Hinchcliffe @sacrebleu141

  1. This falls into the same category as “Corporate Taxes”. Corporate taxes are just taxes on the people. A corporation either has less profit because they didn’t pass the cost of the tax down which means that shareholders, i.e. everybody that has a retirement fund or a stock portfolio or any corporate investment pays the taxes, OR the corporation passes the cost of the taxes down by increasing the price of their products.

    “Billionaire Tax” but the actual law is not going to talk about “It is only these people” it will have some mutable ceiling.

    How about we not spend so much instead?

  2. The good news is that it looks like the tax is currently dead.

    The bad news is that you know they’ll try again.

    Because we don’t ‘pay our fair share’.

  3. I’d be OK with redefining how new value is realized. For example, if your home appreciates, but you do nothing with that unrealized value, nothing, no action. But if you use it as collateral on a HELOC, you’ve realized it as if you partially sold the house. Something of value has come into your control, and you’ve used it.

    It’s more significant with the scam that rich people are doing these days: Buy a $300M piece of real estate in a big city, then take out a loan of $300M. Now they have their original $300M to use elsewhere (paying interest on it, of course), and they control the $300M building, getting rents from it as income that is paying the maintenance and covering the interest of the loan. Whenever the real estate value goes up, they get a loan with that new value as collateral. As long as they don’t sell the building itself, the bill doesn’t come due and they don’t have any “capital gains”.

    If they realized capital gains when they use new value, that’s an objective standard to establish what those gains are, as evidenced by some bank that actually put their money where their mouth is, rather than the arbitrary and capricious judgement of some proggie bureaucrat who will certainly be kind if you have the right ideology and utility to the cause. The proposal at hand is almost certainly ripe for political favoritism. And by “almost certainly”, I mean bet your money on it.

    • Tirno, interesting notion. In the example you mentioned there isn’t any use of increased value. If you change the example to be: after appreciation, the owner takes out a loan for $500M, then you’d have a $200M “unrealized but used” increase in value.

      • OK, I can clarify.

        And I’d like to add that long term assets, like real estate and stocks, really should have their cost basis adjusted for inflation to the sale date. Considering the Y/Y inflation we’re going to enjoy, if someone bought something for $100, and sold it for $105 the next year, he didn’t have a gain of $5, he really lost money because his inflation adjusted original purchase price was more like $110.

        So, back to “unrealized” gains. Let’s start with the $300M building, purchased for that amount. The buyer gets a $250M mortgage, so notionally there is $50M in unleveraged value this in there. If he sold today, he’d get his $50M back (less fees, sales tax, etc, etc)

        The real estate market heats up, and the building’s market price is assessed now at $450M. The buyer decides to use some of that as collateral on a new $100M loan. So he has leveraged the $50M of his original equity, and then another $50M of new equity. Presumably, the bank did their due diligence and there isn’t anything screwy going on. The ‘new value’ that just came out of nothing is a gain, and he has realized it by using it, so there should be the capital gains tax paid (assuming we accept the validity of such a thing). So now the cost basis value of the building is $350M, the market value is still $450M, and the owner could leverage another $100M of value if he wants to pay the capital gains on it.

        Now, what happens if the bank gives a $500M loan on a building that is only market-worth $300M, in some Biden-esque scam adjacent to to some kind of political payoff? Well, sure, pay capital gains on that extra $200M, and the cost basis is reset to $500M, and when someone defaults on that loan and turns it over to the bank, I hope their board and shareholders understand the value of putting themselves underwater in exchange for… what? Maybe the Hunter Biden paintings will look good in their foyer.

  4. Humorous in an evil sort of way, three stacked rocks is the universal sign of danger ahead if I remember my boyscout trail signage.
    And as the commies never get it. They put all their new green power sources out in fly-over country. Ripe for any redneck with a cursory knowledge of thermite.
    Or anyone smart enough to answer the question. When’s the best time to steal a solar panel?
    Or having AI driven trucks haul all your goods across vast stretches of almost nowhere, inhabited only by people you’ve been stealing from for years?
    Something smells. Unless their planning to kill us all off, first.
    Inflating housing prices, assets. Then taxing the inflation is just fed jealousy. And them muscling in on city/county housing tax racket.
    We must be allowed to dip our beak?
    Or one might call it a Mussolini moment. As it always ends the same way.
    Tyranny gets to play for awhile. Then people end up hanging by their feet.

    • “Something smells. Unless their planning to kill us all off, first.”
      Might be. I’ve read that there are doctors that have projected that those who have had the vaxx have a 3-5 year life expectancy, due to the damage that it causes to the circulatory system. Also, billy gates helped fund the wuhan lab, and he is one of those who wants to depopulate the world to a very large extent. Those earth first! lunatics aren’t playing with a full deck, but he has enough money to get things done.

      BTW, there are already doctors that are demanding that airline pilots with the vaxx be removed from flight status, as the chances that both pilots could die on the same flight are not insignificant. They have already had them die, just not both, yet. I don’t think they understand the mechanism involved, but the reduced air pressure that is used at cruise altitude seems to be the trigger. And the airlines are still demanding all pilots and cabin crew get the vaxx!

      • People with clotting issue are advised to avoid flying and high altitudes (mountians) for that reason.

        Sitting for extended periods, like a flight, exasperates the issue.

        My wife had a DVT in Peru and the above were major contributing factors.

      • There’s an Army flight surgeon who has grounded all pilots under her care who got the shot(s), for the same reasons. There have been health incidents on the ground, and only by the grace of God have there not been any in the air (yet).

        Those pilots will remain grounded until the lasting effects of the shot(s) can be identified and mitigated (or until she’s removed as the unit’s flight surgeon and replaced by a gung-ho pro-vax stooge).

  5. The government won’t get much out of the very-wealthy even if they did enact this tax.

    Taxes are like modern money: it’s all bookkeeping.

    On paper, billionaires own very little and have very little money. It’s all “owned” and handled through their corporations, non-profits, and trust accounts, which also “pay the taxes” (read: use every available deduction, break, and write-off in the book — most of which aren’t available to Joe Private Citizen — to avoid paying taxes). The billionaires will pay little-to-nothing, even if their home appreciates; according to tax records, they don’t actually own it! Whatever organization does own it will find ways to reduce and mitigate the expense.

    My question is, suppose my home appreciated this year and the government charges me for the “unrealized value”. Now suppose next year my home depreciates in value (I’m picturing something that causes every house in the neighborhood to devalue — a local crime wave, natural disaster, homeless moving in, etc.) to where it started. Will the government pay me back the taxes they collected on the increased “unrealized value” now that that value is no longer there?

    Call my cynical, but I’m thinking not. If (God forbid) my home burned to the ground, reducing its value to nothing but whatever the bare land is worth, the government would find a way to tax me for that, too.

  6. It reminds me of a line in Kipling’s The Gods of the Copybook Headings;

    “But, though we had plenty of money, there was nothing our money could buy”

    My son and I were just conversing on this subject tonight, and I mentioned the poem to him.

    On the notion that tangible, durable goods are a safe, if not always profitable, investment, or hedge, I have a bit socked away in precious metals: Lead, tin and antimony, and a fair amount in steel.

    Otherwise I try to avoid too much speculation. For one thing it can be a waste of one’s energy. There’s only so much we can foretell, in any case, being that there’s a lot going on that we doin’t know, but something resembling a grasp of world history helps a lot. Then of course it depends on who is doing the telling.

  7. I have the urge to giggle when I remember the story about the first debate on the 1% income tax. One of them suggested that they set a maximum limit of 3%, and the response was why bother, it would never get that high.

  8. This scheme is just the latest in a LONG LINE of schemes by the commie left to STEAL IT ALL. They want every last dime of wealth this country has and unless they are stopped….and they won’t quit voluntarily or peacefully….they will eventually get it all.

Comments are closed.