Some european countries do something similar. At the end of the year you add up evrything you own and calculate you net worth. Then your tax is based on that. It is called a wealth tax.
Taxing unrealized gains. Means people will dump stocks and most investment properties , etc. And the Wealthy people will leave the U.S. This is probably Bullish for Crypto in self custody also physical PM.
You’re right. I have a good diversification of stocks, PM, and crypto, but I’m definitely going heavier with PM and crypto with new investment allocations.
You’ve got to stand up for yourselves and say ENOUGH IS ENOUGH! They are corrupt .. how can you pay any attention to them.. remember they are meant to be working for you!!
@@LidaBaarova-lw2un I’m in the uk and we have the same corruption, fraud and everything bad at the highest levels .. from teaching, to banking, the regulators and utilities there is corruption everywhere .. they have to be held to account.
100% on the money about leaving the us. i've been seeing this trend for years of wealthy people emigrating. what's worse is that states like california can still tax expats at exorbitant rates so these will cut their losses as quick as possible and never return. i am not wealthy myself but an exodus of money from our economy, which is already a sinking ship, is a disaster for us all. well, except for the freeloaders. taxes on unrealized gains is absurd.
As an ex-pat living in Ecuador I am still under US Tax System. The only way I have found to avoid it is to give up my US Citiizenship...Hard to swallow.
@@xxxbirdsong3947 As a US citizen it does not matter where you live and work. You still have to pay US tax. They do this so wealthy people won't get a vacation home and then declare it their primary home to avoid tax. I think the first $50,000 earned outside the US is not taxed, but that is the only break. Also, we have to report any foreign bank accounts even if they do not pay interest. If you get caught lying about it they will take 1/3 of the money.
@@joseph2664 unreal, truly a weird system how can a handful of people getting such ridiculous laws done no wonder golden visa programs are exploding 100% in price people seek safe heavens, and don't want their tax money to be wasted on immigrants and wars.
@@chadgibbs137 It would do more than devastate the markets. It would likely be the end of markets. What would be the incentive to invest? People would sell everything and just buy physical gold or bitcoin.
As an investor I would sell every single stock, mutual fund and ETF I own if I thought we were close to passing that. This would mark the destruction of the US economy. I’m also not a fear monger or conspiracy theorist in the least. But taxing unrealized gains is one of the most blindingly stupid, idiotic, and flat out dangerous proposals I’ve ever heard politicians bring forward.
@@chadgibbs137It would completely annihilate the markets and the retirement portfolios of every single American who worked their entire lives to be able to afford a decent life into old age.
So if my 100 k becomes a million by tax year ending, we would be taxed as it just sits in our account? My home has a higher value now, so can they tax me on that too. I’ll be leaving the US? This is not America!
I would agree, but this administration seems to do whatever they want. I mean they did just approve 98 billion to ukraine overnight and I didn't get a vote on it.
I actually think it has a reasonable chance to pass, simply bc we have seen things lately that we would have never before believed would be possible. Also, even if it doesn’t pass, the more they talk about it, the more it becomes a “normalized” idea. We have to fight against insane talk like this from the beginning.
The notion that these taxes “won’t affect me” is absurd. If the high net worth folks get hit with these taxes, they sell and buy something else WHICH MAKES THE MARKET DO DOWN FOR ALL OF US!! It absolutely “affects you”!
This proposed tax would act as a "cash advance" on any capital gains taxes owed when the investments are eventually sold. However, there are significant legal and constitutional challenges to such a tax, as it could be considered a direct tax on personal property, which would likely be struck down by the Supreme Court.
Paying tax on unrealised gains is possibly ok as long as you conversely receive tax credits for unrealised losses, and any tax paid is credited towards the capital gains tax liability when the asset is liquidated. The problem lies with timing... If one is strapped for cash at tax time, one might be forced to liquidate some assets in order to pay the 25% tax due on the unrealised profits. This will greatly reduce the compounding of gains, which for me is where the proposal seems counter-productive, since the government will ultimately receive less capital gains tax, which is taxed at a higher rate. Unless I'm missing something here...?
@@davycrockett8886 ETH has custodial staking , wich means that when you stake ETH you give away your voting Power away to the entity running the node , Centralized exchanges have most of the ETH and they are partially owned by big Money , there Is a lot more to It then this but Just do your own research
I bet theyre going to start taxing ledgers, deducing the value, like arnold swarzenegger a few weeks ago with the undeclared watch, where they detained him until he was able to withdraw $10,000 cash.
If they did create a stupid law for this that's exactly what I was thinking. But you know how they would play it, it would be such a tiny amount compared to the amount of tax you paid them. They would win either way. I don't think this will get passed though.
This is FUD. If they are going to tax unrealized gains then they have to allow tax breaks for unrealized losses too. Goes both ways. Politicians are investors too. They are not going to go for this either.
Why would you buy a house if it is cheaper to rent than pay mortgage, property and home owners insurance, maintenance and now also tax on unrealized gains??
The US is trying to balance the budget more or less and find a way to get their credit rating back to the top tier. The proposed tax is a little high and will reduce the liquidity in an already illiquid financial market. The loophole is to use property over 1 million as collateral and enjoy a 6% tax rate from the bank. The interest is tax deductible. So then when you go to sell it lowers your taxable gains by a substantial margin and you got to extract value from it. It is only going to target those that don't speak the language of finance and assets. No idea if this is true but I assume so. Capital gains taxes is an attack on real estate and part of why if there is a republican congress and president, buying a house at the get go is going to be good. Sell when it is democratic as their policies follow large cap growth stocks. The problem with the democrats with their policies is that they focus on turning the majority into the working class. Then, you have to speak their language and have your assets in the order that they say in order to have low taxes. Not hey this is simple lets do this. It is completely biased and will have exceptions for those who bake bread (California's minimum wage law and the Panera Bread loophole for a donor). The beauty of A.I. is going to be that they cannot hide loopholes in government anymore. A.I. will be able to call out and translate that information and bills really easily. Then, you will see the regulation there as powerful people will be called out in a bit because they should be. Then, they will spin it like they did with crowd rage to where we are attacking ourselves instead of the corporations that donate. Watch if someone starts using A.I. language models to call out shady stuff in 1000 page bills, they will regulate A.I. in a milisecond and it will be the fastest bill passed. The only way to solve the problems in America is to be a villain so that someone else like a politician can be the good guy so that the complicated tax system looks fair when in reality it is far from it. Jail time for not doing something that requires you to pay a corporation in order to file. A filing system so complicated and so manipulated that hackers can easily file claims and get the tax returns. It is a broken system that needs reform. 44% tax is too high and is simply a tax on not being connected to their political party.
You want to destroy the economy? Force people to sell assets to pay the taxes on the asset that are due even if they don't sell it. Everything will crash and will not recover. The selling pressure will be relentless.
You’re not wrong on monetary policy, and particularly tax rates driving people out of the United States Toby. But some of us must stay & fight the good fight for future generations. Just sayin..
Unpopular opinion. Personal wealth needs a ceiling. Resources are limited, the mega wealthy will end up owning everything and they are already shrinking the middle class. What's your solution for inequality?
Toby, Grayscale has 302,663.9 BTC as of April 24, 2024. What is your best guess on when they will stop liquidating large amounts? When and how will the market finally adjust when they are finished? Just curious as to your thoughts on this subject. Thanks for all you do.
taxing unrealized gains is kinda stupid and will probably never come to pass, but lets be honest and tell the people that this is only being looked at for people who's wealth exceeds 100 million dollars!!.... If I can get that rich, i'll take the damn tax right now.
How the F is it legal to tax unrealized gains...!? Might as well tax the air we breathe ffs.
😁😂🤣
😁😂🤣
😁😂🤣
Some european countries do something similar. At the end of the year you add up evrything you own and calculate you net worth. Then your tax is based on that. It is called a wealth tax.
Come to think of it. The property tax on my house is like that. Every year the tax assisor estimates the value of my house and sends a tax bill.
I understand why the wealthier are targeted for higher tax in principal. But unrealized gains taxation is unfair and stupid
and it will never happen
Why is it fair to tax the wealthy more when they are the top producers/savers?
You need to thank Diaper Joe and his cronies evils Demonrats.
Don't give them any ideas.
If everyone gets access to the same services, then everyone should pay equal tax. Regardless of how wealthy one is.
We print money out of thin air, now we tax thin air.
Taxing unrealized gains. Means people will dump stocks and most investment properties , etc. And the Wealthy people will leave the U.S. This is probably Bullish for Crypto in self custody also physical PM.
Exactly!
You’re right. I have a good diversification of stocks, PM, and crypto, but I’m definitely going heavier with PM and crypto with new investment allocations.
You’ve got to stand up for yourselves and say ENOUGH IS ENOUGH! They are corrupt .. how can you pay any attention to them.. remember they are meant to be working for you!!
This is exactly right!
That ship sailed long before you were born.
@@LidaBaarova-lw2un I’m in the uk and we have the same corruption, fraud and everything bad at the highest levels .. from teaching, to banking, the regulators and utilities there is corruption everywhere .. they have to be held to account.
Love this! 🔥
Is there really something to be proud of of being an American? If the people accept this and let it happen, then it has no right to exist.
As soon as you started your sentence with "President Biden" I knew it would be stupid. And I live in the US
there is no way that old fella is the most voted president ever
You people voted for Joe Biden? Now swallowed your horrendous picked.
@@santiagoferrari1973 - that's the worst part. He wasn't even voted in by the people yet here he is, and here we suffer.
Right! He was voted in by dogs and cats!👍🙄
And I’m an f…ing priest!😀
BidenHisTime...
The dollar is already plummeting. You put this tax into action and everyone is going to move out of country.
Nope you’re all way way too lazy.
Trouble is … everywhere else is the same: you will own nothing and be happy is the Agenda unless YOU and I stop them!
@@franhaw3019Ireland you go girl
Oh no! So these bastards are trying to take money from you that you haven't even made. SMH.
"I don't care I'm well below a million!" (has a mind blowing bullrun that nets well over a million) "HEY! THIS IS BULLSHIT!"
Yea that be funny. 44% poof..., unrealized gains 25% poof 😄
Also gains just driven by silly inflation rates….
100% on the money about leaving the us. i've been seeing this trend for years of wealthy people emigrating. what's worse is that states like california can still tax expats at exorbitant rates so these will cut their losses as quick as possible and never return. i am not wealthy myself but an exodus of money from our economy, which is already a sinking ship, is a disaster for us all. well, except for the freeloaders. taxes on unrealized gains is absurd.
"..this isn't for everyone"
Give it time.
My thoughts exactly. Does the phase " youll own nothing" ring a bell???
The people who say "Tax the rich" want to stay poor. Once you get money or some wealth, you want to be taxed to lose most of it? Dumb.
I concur; With increased intrusion into personal finances can and will lead to the development of more sophisticated tools for evasion.
As an ex-pat living in Ecuador I am still under US Tax System. The only way I have found to avoid it is to give up my US Citiizenship...Hard to swallow.
How can this be? you live and work abroad earning another currency just Don't declare anything or do your taxes in your country of stay
@@xxxbirdsong3947 As a US citizen it does not matter where you live and work. You still have to pay US tax. They do this so wealthy people won't get a vacation home and then declare it their primary home to avoid tax. I think the first $50,000 earned outside the US is not taxed, but that is the only break.
Also, we have to report any foreign bank accounts even if they do not pay interest. If you get caught lying about it they will take 1/3 of the money.
@@joseph2664 unreal, truly a weird system how can a handful of people getting such ridiculous laws done no wonder golden visa programs are exploding 100% in price people seek safe heavens, and don't want their tax money to be wasted on immigrants and wars.
I would suspect a 30-40% drop in the stock market the day after an unrealized capital gains tax.
More like a 90% drop.
@@chingron exactly. If a squirrel farts into the wind, the stock market can take a 30% dip. This news would devastate all markets.
@@chadgibbs137 It would do more than devastate the markets. It would likely be the end of markets. What would be the incentive to invest? People would sell everything and just buy physical gold or bitcoin.
As an investor I would sell every single stock, mutual fund and ETF I own if I thought we were close to passing that. This would mark the destruction of the US economy. I’m also not a fear monger or conspiracy theorist in the least. But taxing unrealized gains is one of the most blindingly stupid, idiotic, and flat out dangerous proposals I’ve ever heard politicians bring forward.
@@chadgibbs137It would completely annihilate the markets and the retirement portfolios of every single American who worked their entire lives to be able to afford a decent life into old age.
So if my 100 k becomes a million by tax year ending, we would be taxed as it just sits in our account? My home has a higher value now, so can they tax me on that too.
I’ll be leaving the US?
This is not America!
Every where you go, you still will be beholden to the tax code unless you relinquish your citizenship
@@kb3809 and the cut off your Social security.
It would be nice if ledger would put a lot more tokens and cions on their nano x instead of having all of these individual wallets
It doesn't affect you until they redefine "high net worth" to include you.
🎯
0% chance of passing it's a nothing burger.
I would agree, but this administration seems to do whatever they want. I mean they did just approve 98 billion to ukraine overnight and I didn't get a vote on it.
@@totalbullion5882 that was the houses bill.
@@totalbullion5882this is election year nonsense, nothing will pass
Bingo. The commoners don't care about 'gains'. They don't even know that that is. It will only hurt the wealthy.
I actually think it has a reasonable chance to pass, simply bc we have seen things lately that we would have never before believed would be possible. Also, even if it doesn’t pass, the more they talk about it, the more it becomes a “normalized” idea. We have to fight against insane talk like this from the beginning.
I'm so down with expatereating from the US.
The notion that these taxes “won’t affect me” is absurd. If the high net worth folks get hit with these taxes, they sell and buy something else WHICH MAKES THE MARKET DO DOWN FOR ALL OF US!! It absolutely “affects you”!
Is it for all types of investments like stocks real estate bonds?
Does that mean the IRS will allow deductions for unrealised losses?
Taxes that target high net worth people will eventually come down to low net worth people trying to increase their net worth.
From India
You and the lady with you are wise and great people
You are in my prayers
Canada just increased this fro 50% to 66% for those annual capital gains over $250;000. The global coordination continues.
WTH... 😲😲
This is civil war levels of insane taxation...
is that for just crypto or all investments..
socialism is good tho never forget that well worth paying 66% for what you get...
This proposed tax would act as a "cash advance" on any capital gains taxes owed when the investments are eventually sold. However, there are significant legal and constitutional challenges to such a tax, as it could be considered a direct tax on personal property, which would likely be struck down by the Supreme Court.
Paying tax on unrealised gains is possibly ok as long as you conversely receive tax credits for unrealised losses, and any tax paid is credited towards the capital gains tax liability when the asset is liquidated. The problem lies with timing...
If one is strapped for cash at tax time, one might be forced to liquidate some assets in order to pay the 25% tax due on the unrealised profits. This will greatly reduce the compounding of gains, which for me is where the proposal seems counter-productive, since the government will ultimately receive less capital gains tax, which is taxed at a higher rate.
Unless I'm missing something here...?
This actually does affect the middle class because everyone will just pass on this cost to the consumers
Do I get to realize the gain on assets before I sell..? Can I set the value of the asset before I sell it..?? Oh, the possibilities..!🙃
So how would they get an appraisal on houses, art, etc so they can tax unrealized gains? The fact of the matter is they won’t.
Hong .Kong should buy ETH through ETF to front run the States.
@@junipersnow1 Yeah. But you can't front run BTC. ETFs have come and gone.
ETH Is owned by JPmorgan , they can probably reverse transactions
@@ravjesus4848 Why do you spread such blatant lies? Everyone knows JPMorgan doesn't own Ethereum.
@@ravjesus4848 Why are you spreading blatant lies? Of course JPMorgan doesn't own Ethereum.
@@davycrockett8886 ETH has custodial staking , wich means that when you stake ETH you give away your voting Power away to the entity running the node , Centralized exchanges have most of the ETH and they are partially owned by big Money , there Is a lot more to It then this but Just do your own research
Which countries are the best for low or no taxes?
What confuses me is this been an election year why on earth would he be trying to pull this off . He really is on another planet
I bet theyre going to start taxing ledgers, deducing the value, like arnold swarzenegger a few weeks ago with the undeclared watch, where they detained him until he was able to withdraw $10,000 cash.
and what happens if you lose the unrealized gains the following year, do you get a tax credit?
Hi guys, how about doing something on tax evasion for a change.
Pay taxes on the sizzling steak that you may eat next winter. Pay up now.
Canada is doing the tax raise also 66% over $250.000 crazy
in canada trudeau already charge a tax on on unrealised profit on cryptos canadian citizens hold on each fiscal year..
Credits for unrealized losses?
If they did create a stupid law for this that's exactly what I was thinking. But you know how they would play it, it would be such a tiny amount compared to the amount of tax you paid them. They would win either way. I don't think this will get passed though.
This is FUD. If they are going to tax unrealized gains then they have to allow tax breaks for unrealized losses too. Goes both ways. Politicians are investors too. They are not going to go for this either.
They'll exempt themselves
Then how about unrealized losses?
Why would you buy a house if it is cheaper to rent than pay mortgage, property and home owners insurance, maintenance and now also tax on unrealized gains??
True dough in Canada raised the capital gains tax to 67 percent, I wanna cry!
Wtf, are you serious, that is insane.
With the Hong Kong ETF for BTC & ETH. Both will pump so high :) Ethereum under 10,000$ is so cheap.
Grayscale's fees are a lot higher than other EFTs.
This Tax on capital gains went up in Canada
You hit the nail on the
head Toby! Keep it up.👍
So when the value goes down we get money back???
The US is trying to balance the budget more or less and find a way to get their credit rating back to the top tier. The proposed tax is a little high and will reduce the liquidity in an already illiquid financial market. The loophole is to use property over 1 million as collateral and enjoy a 6% tax rate from the bank. The interest is tax deductible. So then when you go to sell it lowers your taxable gains by a substantial margin and you got to extract value from it. It is only going to target those that don't speak the language of finance and assets. No idea if this is true but I assume so. Capital gains taxes is an attack on real estate and part of why if there is a republican congress and president, buying a house at the get go is going to be good. Sell when it is democratic as their policies follow large cap growth stocks.
The problem with the democrats with their policies is that they focus on turning the majority into the working class. Then, you have to speak their language and have your assets in the order that they say in order to have low taxes. Not hey this is simple lets do this. It is completely biased and will have exceptions for those who bake bread (California's minimum wage law and the Panera Bread loophole for a donor). The beauty of A.I. is going to be that they cannot hide loopholes in government anymore. A.I. will be able to call out and translate that information and bills really easily. Then, you will see the regulation there as powerful people will be called out in a bit because they should be. Then, they will spin it like they did with crowd rage to where we are attacking ourselves instead of the corporations that donate. Watch if someone starts using A.I. language models to call out shady stuff in 1000 page bills, they will regulate A.I. in a milisecond and it will be the fastest bill passed. The only way to solve the problems in America is to be a villain so that someone else like a politician can be the good guy so that the complicated tax system looks fair when in reality it is far from it. Jail time for not doing something that requires you to pay a corporation in order to file. A filing system so complicated and so manipulated that hackers can easily file claims and get the tax returns. It is a broken system that needs reform. 44% tax is too high and is simply a tax on not being connected to their political party.
"a bunch of children running different counties stealing from each other". I love it put like that!
LOVE YOU TWO!!! KEEP PREACHING THE GOOD NEWS!!
Since I didn’t realize that I made gains, I think I can beat these taxes!! I had no idea!!!
25% tax on them realise gains so what about unrealised losses will they pay you 25%?
when you say people will leave, are they going to renounce their citizenship?
I will gladly!
I have always planned to live in Belize...now, I'm halfway packed
You want to destroy the economy? Force people to sell assets to pay the taxes on the asset that are due even if they don't sell it. Everything will crash and will not recover. The selling pressure will be relentless.
You’re not wrong on monetary policy, and particularly tax rates driving people out of the United States Toby. But some of us must stay & fight the good fight for future generations. Just sayin..
stay and fight...nah, all the jews, chinese, koreans, and Indians will leave. You dont take their money.
Wow this was great thank. You
Are they going to credit us for unrealized losses too lol ???
Dam Toby looks different without makeup 💄
Doesn't everyone?.... 🤣
😮😮
he is just old
It WILL effect everyone at some point...
That's how all taxes work 🙄
All marketd would tank. Quickly.
It wont pass unless there is some exception for members of congress.
So you hit back with unrealized losses
Why is Grayscale selling Bitcoin if everyone expects it to go up?
Timing
Money flows to where the highest gains are possible and that is US economy.
You can't get taxed for your losses only profits. Taxes are voluntary anyway on any and everything.
Let them leave
You're right
Video starts at 2:42.
Letting the fed tax your savings that you already paid taxes on is the worst idea in history..,
People will leave for sure! Thanks!
I bet they eill not tax Black Rock with taxes.
Guess I'll start claiming unrealized losses to offset my unrealized gains.
How can they tax unrealized gains? That’s absurd!
Next up - tax on unrealised gains of any planned future investments too !
Anyone who can leave should leave while you still can.
No matter where you go you will be liable for US tax, unless you get citizenship of another country and bin the US passport.
@@leejames1792 That’s true. However, the quality of life and the cost of living in many countries is better.
Won't pass .
Land of the Free... anything but.
Looks to me more like a curse than blessing being tethered to that beast by the umbilical these days
This will not stand constitutional review.
Thank for not scrolling the chart today.
Isn't tips a unrealized gain.
Unrealized capital gains tax applies to those with $100 million. Capital gains tax is increasing a few % points.
Don't be naive. It will effect everyone.
Inflows to non-GBTC has collapsed in the last 2 wks
Those who fail to study and understand history are bound to repeat it. We will become the united state of Kailifornia! with this mentality.
If you don't sell in order to make your self rich, then sell out of patriotic duty! We need your life to feed our beloved supporters-cronies.
So you are going to trust etf in Hong Kong (China) give me a break.
Unpopular opinion. Personal wealth needs a ceiling. Resources are limited, the mega wealthy will end up owning everything and they are already shrinking the middle class.
What's your solution for inequality?
Toby, Grayscale has 302,663.9 BTC as of April 24, 2024. What is your best guess on when they will stop liquidating large amounts? When and how will the market finally adjust when they are finished? Just curious as to your thoughts on this subject. Thanks for all you do.
They can't tax unrealized gains. Even if they say they can. It will never happen
BAKED BEANS POOL SOL/BNB 🔥
The land of the brave and the free is pretty much fu===d.
Thank you President Biden!
As much as i think he's a joke, this really has nothing to do with him. He's just a puppet. @@clutch2827
both of them only looks good when the market is up.
I’m embarrassed of my government, but proud to be an American.
taxing unrealized gains is kinda stupid and will probably never come to pass, but lets be honest and tell the people that this is only being looked at for people who's wealth exceeds 100 million dollars!!.... If I can get that rich, i'll take the damn tax right now.
Are you all okay? It looks like yall aged 10 years in 2 weeks