Bidens Tax Increase Sends A Very Dark Signal – Peak Prosperity
Summary
Tax Policy Risks: The guest critiques proposed U.S. tax changes, highlighting steep hikes in capital gains (up to 44.6% federal) and potential combined rates near 60% in some states.
Real Estate Impact: Detailed concern over capping 1031 exchanges, forecasting reduced liquidity, fewer transactions, lower GDP, and job losses in property markets.
Energy Sector Headwinds: Ending oil and gas tax incentives (drilling cost deductions, depletion allowances) is framed as a strategic mistake given energy’s role in national prosperity.
Wealth Preservation: The guest advocates protecting wealth via resilience and non-financial strategies, emphasizing preparation for policy-driven economic strife.
Hard Assets & Land: Suggests skills, real land, and hard assets as potential outperformers during turmoil, positioning them as part of a defensive allocation.
Example Companies: Nvidia and IBM are cited only as illustrations of capital gains taxation and inflation effects, not as investment recommendations.
Inflation as Hidden Tax: Inflation is portrayed as stealth wealth confiscation that compounds with higher nominal gains taxation, pressuring real after-tax returns.
Overall Stance: The perspective is cautious, urging investors to prioritize capital protection and real assets amid increasing taxation and regulatory uncertainty.
Transcript
nothing is certain but death and taxes and the fact that authoritarian regimes end in Mass [Music] atrocities hello everyone I am Chris Martins and a Peak Prosperity today we are going to be discussing this which is the extremely troubling taxation proposals that just came out of Team Biden and uh they're extremely troubling n listen there's always calls for higher or lower taxes not that it's what this tells us about what they're really thinking I've got an explosive unique way of looking at this potentially tell me what you think it starts with this uh this is in Bloomberg so you know it's a real thing they're talking about capital gains now that got the headlines in this particular Story the capital gains it's a pretty ruinous approach to taxation well let me just show you what I'm talking about here what the this goes back to 1922 and this would be the highest proposed capital gains tax rate in over a 100 years and this is astonishing taking it all the way here from about 24% all the way up to 44.6% on capital gains and by the way when that's just at the federal level when you slap that on top of what the states are putting in there blue States turn out to be the worst who knew if only there was some way to predict that this is how things would go look at this Californians will face a combined federal and state tax rate of 59% hey citizen 60% of what's yours is actually ours okay and here's the problem uh we can have a debate all we want about what's the appropriate capital gains tax rate but in order to have a capital gain you had to have had Capital the capital was already taxed right if I'm going to put money into IBM for instance I have to earn that money from that's after tax money I put that in and then I get a gain and the government says well in certain circumstances we think 60% of that belongs to us oh by the way if you have losses on that those are on you but if you have gains well we need those gains it's totally asymmetrical unfair how did we get here to this point where the government feels entitled and this is an entitlement problem feels entitled to more than half of what you earn in wealth now if you've been following the great taking series that been doing as well all of my other work you understand that this this isn't like some future prediction I'm making here this is simple Trend extrapolation more and more and more is going to be taken from fewer and fewer people in order to balance this whole thing out in the minds of these diluted DC people but in fact what they're going to do is they're going to kill the goose that laid the golden egg they are going to destroy Prosperity these are Prosperity destroying numbers right here uh let's see New Jersey 55.3% and Oregon 54 Minnesota 54 New York State 53 more than half these states believe that in combination with the federal government working hand inand that they have the right to take more than half of whatever gains you might have so let's go into this law a little bit obviously a huge battle is going to be looming this is going to be a giant political battle quote President Joe Biden's budget proposal which calls for sweeping tax increases on corporations and the wealthy uh is the opening round of illumining tax fight set to consume Washington next year Congress forced into tough negotiations over the future of the tax code with large portions of former president Donald Trump's 2017 Cuts set to expire at the end of 2025 many lower and middle inome households will see a tax increase if lawmakers don't act providing motivation for both Democrats and Republicans so lower and middle class household will actually see a tax hike so what are you going to do well we're totally in the soak the rich stage part of this story now we're getting closer to that and that therein lies underneath that once you decode what that actually means there's something very troubling lying under that okay carrying on quote Trump has vowed to push for the biggest tax cuts ever if return to power Biden meanwhile is seeking higher levies on large businesses and investors while pre preserving some of his Rivals Cuts oh no oh no he's not preserving really anything this is the most sweeping comprehensive grab bag of tax hikes that you've ever seen in your life so what a showdown I'll cut your taxes I'll ream you with taxes this is one of the most politically easy things to resolve I'm not a great political analyst but I will tell you telling people you're going to hike the Jesus out of their taxes versus telling them you're going to cut their taxes uh is that's a no-brainer it's very easy to tell who wins that particular argument now a lot of rich people I know have been thinking up till now and I've been having weird conversations of late or maybe not unexpected conversations but unusual I should say not weird unusual conversations where rich people are starting to figure out that they aren't safe just like poor people always knew and middle class always new even the wealthy are starting to understand they are not safe because well they're coming for everybody in this story that's what the great taking is about that's what all of these code changes are about and I'll show you much more especially part two of this about what that really means so Hey listen to make sense of all of this because the great taking is very complicated I admit the legal code around all this stuff is very complicated we're going to be holding a great taking protect your wealth webinar by Peak Prosperity bringing in experts and we're going to talk about seven key strategies that you can pursue to protect your wealth maybe not all seven will apply to you but some of them certainly will so if you have wealth to protect come consider coming to that uh webinar it's going to be really good I'm pouring a lot of effort into that I'm going to make it just really worth your time worth every penny that'll be on June 15th it's live but of course if you get a ticket you can always Replay that at your leisure later uh at any point in time and also whether you attend live or not um you can review it later so when I say some are so poor or some people are so poor they only have money um what I'm really talking about here is that listen if all you have is money you're going to need to have some backup strategies to that skills land real land hard assets productive wealth these are all things that actually can do really well in a time of great strife and the argument I'm making here today the case I'm laying out is that we're headed towards a period of great Strife because these midwit these administrators in charge they don't know what they're doing they're too far disconnected from reality they know not what they do and so they are going to wreck this thing and the path that we're on this isn't a prediction this is a trend extrapolation we're already headed this direction and we're picking up steam we're going faster and faster so I just want to be clear about what I'm doing here and what I do routinely for my subscribers is I connect dots I put them together in a in a set of ways and you either agree with that or not but if you see it my way you realize the kind of trouble we're in so this has really turned into a soak the rich thing this got all the headlines the capital gains proposed increase I showed you the chart of that going up to 44.6% quote uh budget proposal and this is a budget proposal somehow it's influencing taxes would increase the capital gains tax rate to equalize the taxation of investment and wage income so okay all right all right all right capital gains and and income that's fine but why what why why not bring the income tax down to the level of the capital gains rate rather than saying oh our only option is to equalize them we must bring this one up to these other high ones the government spends too much money it wastes money like crazy we run in the United States a so-called Department of Defense which is not doing anything defensive it's out there being offensive we are conducting all kinds of ruinous foreign policies that are way too expensive we're blowing money left right and Center on really dumb things in this country and we are not investing in things like infrastructure high-speed trains uh high-speed internet you can get way better internet in a cafe in the Philippines up to your ankles in swampy water from their local cafe than you can in most places in the United States it is a disgusting tragedy so so I say if you can't spend it well you should have less of it not more of it so cut government spending is the option they never take okay carrying on um this would mean that capital gains for those earning at least a million would be taxed at a base rate of 39.6% up from 20% Biden is proposing to increase the 3 88% Medicare tax to 5% for those earning at least $400,000 to short up the program's trust fund and that would mean the richest taxpayers would pay a 44.6% federal rate on investment income and other earnings now well let's carry on one to that last part in green the plan also calls for taxing assets when an owner dies ending a benefit that allowed the unrealized depreciation to go untaxed when transferred to an air so so they want to make sure that if anything you had appreciated in value the government says we have a right to that we we you got to give us a piece of that you got to little taste of that action that's you know but as I'll show you later a lot of times the a majority if not the preponderance or majority or all of the increase in the price of an asset is because of inflation and the government makes the inflation happen which is a tax and then they tax you on the tax so that's a more complicated story but we'll get there but this I mean if only there were some signs like uh AOC last year um wearing her very expensive uh ironically enough tax the rich dress it's some galab ball for a bunch of rich people so make of that what you will now what's interesting is that this is actually specifically targeting if we think of capital gains really mainly applying to stocks and they don't they they apply to businesses that you've you've bought uh the small businesses medium-sized businesses would be heavily impacted by this it could be bonds too but thinking about capital gains in terms of stocks it's interesting that 92 a. half% of all stocks are owned by the top 10% of households those top 10% of households also already pay the majority of taxes and also tend to be the political donor class who are giving the most money to either one of the two branches of the unip party right so it's kind of weird for the Democrats to be saying you know it would be a great idea right in an election year I know let's come after let's promise to come after our biggest donors scratchy record moment right little odd now what's interesting here and to carry on with that taxing the tax idea Dylan lir here at Twitter the other day just tweeted out and said unrealized cap gains can never happen unrealized meaning you haven't actually sold the thing um but it but it's only for highet worths people will will claim no I reject their framing inflation is already the tool for covert wealth confiscation which is true and now they want to make the theft over Alliance share of realized capital gains today aren't even the result of asset appreciation or good Investments but instead a second order effective currency debasement that is inflation if I bought a a share of some stock for $100 and then my currency to Bases by half and it's worth $200 it's not worth 200 it's worth the same hundred just in a debase currency that's worth half as much if you follow that okay um an example of this slow creep is the bank secrecy Act of 1970 which required financial institutions to report transactions over $10,000 right 54 years later and the threshold is still 10K despite 10K in 1970 being worth 65k approximately in 2024 terms yeah that would be my you know um you know that would be more more suspicious right um oh sorry 85k um yeah so uh carrying on quote any and all attempts at justifying arbitrary thresholds especially in fiat currency terms which fluctuates mostly to the downside is it inflates away um for where wealth cont isation becomes legal and just must be outright rejected it's a steady encroachment of privacy Liberty property we are headed down an ugly path time to take a stand end quote totally agree with that Dylan lir 100% now this is an important concept I cover this in the crash course pretty extensively if you haven't seen that the inflation chapter alone is worth the price of admission and by the way it's a free online course uh that you can access at Peak prosperity.com and I discuss inflation a lot and it's a really important concept but it's never really talked about all that much Milton fredman said inflation is taxation without legislation so so what did he mean by that well consider that in December of this past year the inflation rate that was 2023 the inflation rate skyrocketed to a 40-year high of 7.5% for example of every $50,000 you've saved it's now actually worth $3500 less where did that $3,500 go it's like if you had 50,000 in the bank and the government sent you a tax bill and said send us $3,500 it'd be very clear you just got taxed when the government prints too much money and sends it off to Ukraine to get blown up or whatever they're doing with it right $2 trillion of excess printing this year next year next year next year those are those are those are it's a it's a tax only they didn't send you a bill they just overprinted and then your $50,000 has $3,500 less of purchasing power next next year and where did it go well it was spent already your purchasing power was printed up and spent by the government so that's why it's called Uh a hidden tax and it's a tax because I can't make inflation happen I don't have the power to print money and make your money worth less I don't I can't do that but the government can't so they hit you with that tax but then they hit you with that tax again so let's talk about taxing the tax how about this let's say I I bought and this is an investment advice this is just purely an example educational purposes only let's say I bought a a uh Nvidia last year I bought a share one share of Nvidia and it was 277 bucks exactly a year ago and oh no I sell it this year for $877 this is amazing the gains were $600 per share or that's a 216% gain fabulous trade way to go Chris okay now you might say okay you know that that's look at all those gains you had uh and since it's more than a year or it's exactly a year it's a long term capital gain so it' be subject to this new tax they're providing but what if I bought the S&P way back on March 1st 2014 it was at 1614 and then I sell it today at 5101 and that's also a 216% gain well they would both be taxed the same you you had this 216% gain we the government deserve access to that but at least 15% of those gains that I had in in example two there were were just inflation due to if you use the CPI calculator at you know over there at the at US Government um I actually think that that those the CPI is wrong I have a lot of data for that if you saw I interviewed um Ed Bowski of the chapwood index right showing that inflation is actually closer to 7 8 9 10 12% per year in all your major metropolitan areas not 3 two 2 and a half 3 4% whatever they say it is so if we said that actually since 2014 we were we actually experienced an average inflation rate of 7% a year then 100% of my gains my my capital gains on riding the S&P from 1614 to 51001 were due to inflation I gained nothing I had no additional purchasing power but by the government taking half of that they said well we put this inflation tax on you and so you you got nowhere you basically your Holdings were were dead flat for over that 10year Horizon but now we're going to take half of that because look at the gains you had we're going to take half of that half of those gains belong to us right that's the argument they're making and it's interesting how come the government never offers an inflation adjustment on any gains H it's a really interesting question why not now carrying on from that same Bloomberg article they're talking about a billionaire tax here and Biden is proposing a 25% minimum tax rate on households worth at least 100 million so so that's a tax rate on their income so if you have 100 million in net worth so somehow you're going to have to tell the government what your net worth is I'm not clear how this gets implemented but that's another story for another day um they say they're currently paying an 8% rate on their income tax so look at that 8% to 25% they're saying hey and by the way 100 million is a c A- millionaire not a billionaire they're calling it a billionaire tax but if you have at least 100 million which is not a billion uh then your income tax rate is going to basically triple from 8% to 25% just over triple so again your Cent millionaires your those people tend to be your heavy donors because they can join me on camera three for a second how does this even make sense really team Biden is saying you know it would be a great idea why don't we tell the people who happen to be some of our heaviest supporters that we going to be just coming after them demonizing them and tripling their tax rate okay at any rate uh carrying on here for a second now what's interesting is is that back in 1913 uh you know when this all got started you had to ear a lot to even get to that 7% top bracket right so it was like you had a 1% income tax here rate oh let me get my little little pointer out you had a 1% marginal tax rate if you earned up to 20,000 which was the equivalent of $48,000 today a 1% tax rate somehow the government was happy enough and the country was fine it was building roads and was just about to fight a big world war it had industry and schools and was reasonably prosperous and growing and developing and it did all of that with the government taking just 1% of up to $480,000 of income equivalent and then you know by a million two you were you know was up to 2% and if you were earning somewhere you know up to 1.8 million it was taken 3% but to really crank out here to get up to the 6 7% bracket you had to be earning 12 to I believe this number would be what 24 million so you'd have to be earning 20 plus Mill earning 20 plus million equivalent dollarss in today's terms in order to hit that top tax rate of 7% and oh by the way back in 1913 there were 400 pages of tax code and today there are 74,000 uh 68 good luck complying with that I guarantee you you're out of compliance somewhere in that giant stack of gobble deg up there right it it's just ridiculous how how complicated all this is so um carrying on this is a com that redneck engineer left back in one of the Forum areas back at Peak Prosperity I think this was in a in a subscriber area so I wrote that there's not one single example of collectivist communist authoritarian regimes or states that didn't end up with mass atrocities on the back end reduced prosperity and generally awful living conditions for the masses and so redneck engineer wrote and why is that well it root what raises the standard of living is the application of reason to the problem of production of creating the things we need to survive and prosper what a rational mind most needs politically is to be left alone I agree to be unrestrained to be free a free mind can chase facts wherever they lead a free mind can uh innovate and in unexpected ways and it is uh Freedom which leads to Prosperity freedom is necessary for Prosperity freedom I agree everything we're talking about here more and more taxation with more and more laws and rules and you have to figure out some way through all that mess this is anti- freedom anti- Prosperity these people who are in charge right now are risking our entire Prosperity I need you to understand that and if you think you're insulated from this because you're rich you are mistaken this is going to affect all of us we're all living off the Golden Goose there's people coming out stabbing at it seeing if they can get that out now here's why this is really weird to me this is where I don't understand what's happening at all rules for rulers if you watch this uh I I post this every year for my subscribers it's free on YouTube check it out rules for rulers It's a Wonderful 19 minutes explaining how power works and one of the first lessons is that no man rules alone or no person and so you need to have your keys to power and here they're representing all these different keys so you could be king you could be team Biden you could be the White House you could be a senator you could be the head of an H OA you still need to know who the people are under you who are actually the people who are granting the power that you have here you might have the police the military business people your revolutionaries whatever these little icons represent so these you have to keep your keys to power happy that's what you have to do and you do that fundamentally by Distributing the treasure that's what all those little gold coins are supposed to represent there so think about this real quick then this is also in the budget um proposal for taxes from Team Biden real estate the budget proposal would eliminate a tax break known as like kind exchanges these are 1031 exchanges that allows wealthy investors also not so wealthy investors to avoid they say actually they should have used the word defer because it just allows you to defer the taxes for later that allows investors to defer paying taxes on the proceeds of a property sale if they reinvest those profits back in into another real estate deal these are the 1031 exchanges um these are a very big deal I'll show you more data on that in just a second but also oil and gas team Biden is renewing their call for Congress to End Tax incentives cherished by the oil and gas industry including a deduction for drilling cost a write-off for production from marginal Wells which is depletion allowance and a tax break under which mineral rights owners can claim some of the value of the oil and gases gas reserves removed from their property so the drilling and depletion uh tax breaks gone uh they're saying here or reduced heavily now this is this is bizarre see if you show me the incentive I'll show you the outcome and for all of its gobble and Labyrinthian ISM there is a certain intelligence behind government tax policies and basically they understand that they want to punish some things and they want to reward other things so what does the government like well it likes oil and gas coming out of the ground it likes houses for people to live in and it likes jobs and it those are the things it likes so the tax code is actually pretty favorable in those areas and they're saying nah you know what we're going to remove these things which have been a pillar of the American Prosperity experiment for a long time we can disagree with them we can argue about them we can chisel at them a little bit we can modify them but you don't just sort of like sweep them off the table like you're all done with that game of checkers right that's what's being proposed here and that's very troubling so when I tie this back into the rules for rulers I think you'll see what I'm thinking but just to go down this path because I know this affects a lot of people who are out there in real estate land including a lot of my followers the budget uh Biden's Budget on 1031 exchanges this comes from aou ac.com um a very reputable outfit who who has to help a lot of big clients figure these things out so US Department of Treasury released their General explanations for Biden's team Biden 2025 budget um which proposes hard limits to be set on the 1031 section quote The Proposal would permit deferrals of gains those again deferrals a right word here would permit deferrals of gain up to an aggregate amount of $500,000 for individuals or a million for married couples filing jointly annually for similar real estate exchanges so this would just so if if you had a $10 million building with $8 million of gains in it they'll let you right you know Shield 500,000 of that or a million of that as long as you roll that that amount into another real estate deal 500,000 folks if you've been paying attention doesn't go far in the world of real estate anymore so this would just be absolutely disruptive if they get this hey you know what they propose stuff like this all the time good chance this doesn't happen but again I don't care if it happens or not I care about the fact that they're proposing it at all here recording this in April of 2024 a presidential election year that's got a troubling implication again I'll get to that soon um carrying on quote any gains from 1031 exchanges above 500,000 or a million for married couples in a year would be recognized in the year of the exchange transfers the real property is subject to tax becomes income Capital goes to the uh capital gains portion of that and that's going to scoot up to if they're if they get their way up to 44.6% this is amazing this is a huge thing right continuing on from that same ACR article I said here however setting a $500,000 cap on these exchanges might hinder investors ability to engage in larger and more complex transactions of course potentially reducing liquidity in the real estate market consequently this could lead to a decrease in property transactions and oh by the way studies that have been conducted on this say well you know um this would uh cost of capital is going to increase GDP is going to contract and we know that this 1031 Act is supported approximately a million jobs created $48 billion of layer income and added nearly 00 billion to US GDP so this is really just an assault on the real estate sector and the economy of course um and so that's crazy and so what would happen the result of the budget proposal again from the ACR article is they say here quote the president's budget projects that capping 1031 exchanges would generate 1.86 billion in annual revenue hey uh how many Ukraine does that support not that many however considering that tax revenue from 1031 exchanges is roughly 10 times greater than the projected revenue from limiting them whoops it is mathematically clear that restricting 1031 exchanges would be an ineffective and counterproductive measure end quot that is it will not just fail it is guaranteed to fail and it's going to cost more and ruin things and it's going to be quite damaging now why would they do that because when the choice is either between doing the right thing or the wrong thing the the outcome is always assured this Administration and these sorts of people they will always do the wrong thing aristal said evil destroys even itself it just does evil the this is just this is my my definition of evil is a force that wants to destroy itself it wants to destroy others an evil person is miserable but doesn't work on reducing their misery and becoming happier they work on making sure that they can make you as miserable as they are right um they don't understand how to build businesses they understand how to tax them steal from them destroy them regulate them administrate them uh all of that that's just that's just how it rolls right that's that's really where we are um the only Power of evil is to destroy itself this is what Matias desmat talked about this all this evil stuff that we're seeing now with the totalitarian and mass psychosis formations that are happening out there is that they end in Mass atrocities and they burn themselves out they destroy themselves but they also destroy everything else along the way this is why this is so important to actually see these tax code proposals for what they are is really important at this point in time um Psalm 34:21 says evil will slay the wicked so it destroys itself right and the haters of the righteous will be condemned this is really we're at that choice moment where every person watching this listening to this or not has to make a decision in this in these in these moments but in these next few years where do you stand which who are you standing with and why this is getting really quite foundational we're kind of at the basement level we're down to core values and core principles at this point in time all right so how about this though to carry on just this is also from that uh Bloomberg article talking about this Biden tax proposal something called carried interest so carried interest tax break is used by private Equity Fund managers to lower their tax bills that would be eliminated under the Biden plan under current law investment fund managers can pay the 20% capital gains rate on a portion of their incomes that would otherwise be subject to the 30% 37% top individual income rate so these are the hedge funds and private Equity right they they charge say two and 20 they're going to take 2% plus 20% of any gains they tend to they they develop and generate that's what the 220 rule is so they used to getx taxed on that at 20% because that was a capital gains and now they're going to it's called carried interest do away with that now we can argue is that a good thing a Bad Thing H plenty of arguments either way but what we can't argue is that a lot of these people are the donor class to the DNC that's indisputable okay and how about corporations so they want to globalize this taxation thing and set minimum rates so Trump's 2017 corporate tax cut here quoting uh tax cut would get significantly rolled back bringing the top rate to 28% from 21% The Proposal also calls for increasing the taxes us companies owe on their foreign earnings to 21% doubling the 10.5% rate in Trump's tax law the um as well uh they want to set a global minimum tax which would allow the US to tax a company if it's paying below a 15% rate and the country where it's headquartered also isn't applying the 15% minimum rule so if a company's operating in a different country and it isn't paying that 15% minimum rate United States is going to unilaterally decide to tax that company at the 15% rate and Biden would also impose a 21% corporate minimum tax on domestic companies um an increase from the current 15% so that's a good 50% increase in that number which means some businesses are restricted from using all of their tax breaks so this basic wholesale rewriting but again a lot of these corporations are the donor classes to the DNC and again this isn't Biden's proposal whenever they say Biden's proposal you need to think team Biden whoever his handlers are because we know it's not Biden himself but whoever the people are who have been administrating behind the scenes they think this is a good idea and notice what they're hitting here right corporations wealthy individuals Wall Street uh this is pretty this is an allout assault on what I would have considered their power base that is the keys to power so um and by the way the proposal called just crumbs absolute crumbs for the bottom of society the Biden they would like oh it would expand the child tax credit to $3,600 up from 2000 oo thanks for the $1,600 big guy did you see any of my Ukraine money in with that um so at any rate that crumbs an absolute crumb that's all that's in here right so guess what the rules for rulers back to this idea because this is the shocking part about this whole thing I'm I've got here finally so you you've seen what the all the dry languages of these tax proposals then maybe even they all get rejected none of that happens it doesn't matter because of the Optics of what those are telling us so the normal rule job number one for anybody in power is you distribute The Treasure of the nation right so that's the dollars in this case dollars come in you section them out and off they go to your people who are busy who are your keys to power okay and so these are your voting blocks and these are certain government ad you know you got to keep the Army happy and you want to keep if you're a mayor you want to keep the police happy there's just this just the ru it's just rules if you haven't watched rules for rulers go watch it there the link down below um super easy to find on YouTube so that's your job that's what you do you distribute the dollars so let's think about the power blocks here well real estate is a very powerful Block in this story always has been and so we're looking at the elimination or or a severe restriction on 1031 exchanges so boom that block is out Wall Street through carried interest in the capital gains this no bueno no bueno going against Wall Street and oil and gas this very powerful block has been for a long time for good reason the wealth of a Nation comes from its energy you know I talk about this all the time if you have energy you can have an economy and things on top of that everything is a derivative of having energy so to begin smacking at this is is a big change and it's odd because it's a powerful block and then for the just citizens ordinary well the top 10% these are your your top donors um typically too so there's capital gains and then also estate taxes like changing the estate taxes like like no longer allowed to build up a business and pass it off to your grandchild right at you know just here it is here's the business I built it up here you go I'm passing this on oh no we're going to have to tax that this is going to smash Family Farms small businesses you're going to have to sell them because of the tax implications destroying them as a family business so this is an absolute assault on our ability to be productive and have continuity across our Generations right they don't want that what they want is everybody dependent handouts Central Bank digital currencies 15 minute cities you name it blah blah blah blah blah this is what this is this is a smashing grab and this is astonishing because think this through when would you in a presidential election year decide that you're going to throw these people who are your keys to power under the bus I'll tell you when according to the rules for rulers the keys necessary to gain power are not the same keys that are that are needed to keep it so there's when you have a revolution in a country that's what this little icon from the video shows when there's a revolution the people who were your revolutionaries the people who brought you to that point well sometimes you have to put a bullet in a couple of them because they're not the same people you need for the next stage of this whole thing so the revolutionaries aren't the same people you need for part two of the story so if this message is hey you people who built capital and had money we're going to just we no longer need you and we're going to Telegraph that to you very very clearly the question is what sort of a revolution is underway and what is the end what what under what future state do we not need real estate Wall Street oil and gas and our most um our wealthiest most productive people under what future scenario do we want to signal to those constituencies those blocks that their services are no longer needed what does that mean what does it mean that team Biden no longer believes it needs the former power blocks and so this is a replacement cycle hey we're going to tax you out we're going to take 60 did I hear 70 do I hear 75 do I hear 80 do I hear 100% let's just take it all that's the path we're on that's not a pro prognostication that is a trend extrapolation that's the path we're on okay why are we on that path nobody ever talks about team bid like well here's why we need all that money you know here's what we're going to do with it and here's how it benefits you it's just like they just tell you and you have to accept it or not uh your choice so that's really weird because you know again Wall Street they say here spent over 74 million to back Joe Biden's run for president that's just Wall Street alone but down below the financial services industry collectively donated one 1.96 billion to house senate presidential candidate seeking election in the 2019 2020 cycle so this is astonishing and they spend another um you know nearly billion dollars lobbying so they spent a lot of they put a lot into this right these is your keys to this are your keys to power these people hey you people we're going to Triple your taxes or more or double triple them right okay what does that mean I can think of only two possibili and I'm going to let you read them because these are sensitive subjects and you can read them for yourself this would be one this is one possibility here's another possibility could be that too I don't know why these two things necessarily but these are the only reason I can think that you would throw your main keys to power your keys under the bus is because you're not worried you you no longer need their Services there is a null hypothesis which is yes team Biden they in this story really are politically super tone death morons and this is the dumbest pre-election move ever but that's not what's happening here that that I can pretty safely conclude the null hypothesis is not is not viable so we have to consider some other possibilities if you have other possibilities please let me know what they are you know are we going to discover that UFOs are real is is there some free energy coming soon so money's no longer needed is there a cbdc on the way so all of this is irrelevant who knows but this is what's occurring to me in an election year okay as a reminder these are just a few of the fees and taxes that an American now faces here in 2024 it's just all over the place right you got your library card fees if there s there's such a thing as library cards anymore you got cigarette tax court fees dog license tax you got driver's license fees there's garbage tax we we have to pay to get our garbage dumped I have to take it somewhere and pay that's that's town I live in uh you got a gun ownership fees gift taxes Social Security taxes unemployment taxes taxes taxes taxes taxes taxes taxes by the way it was a much simpler thing back in in uh 200 I mean sorry 1913 very very simple um what was going on and just how easy it was there were almost no no taxes and fees to worry about um not compared to this particular list and so this this is all about control this is nothing this is not reasonable it's not ordinary it's not usual it has nothing to do with how the country was founded or what it stands for hopefully so I'm going to have to piece all of this together for my subscribers that's going to be in part two and of course every week I do a part one part two uh I go a little bit deeper a little bit farther and mostly I go into also Solutions and things that people need to be considering and thinking about as they process all of this information um I would love to have you become a subscriber at Prosperity it is an incredible value I give you my absolute best I'm doing three scouting reports a week right now plus this one that you're watching now which is a deep dive which has a part one and a part two and I'm in the comments there it's 247 full contact work for me because of the times we live in regardless of whether you come to Peak Prosperity or not please do what you need to do to become resilient and prepared there are hard times on the way because these clowns they have a plan they want to build back better or whatever their story is in order to build it back better they have to wreck it first they know not what they do they don't understand complex systems they don't understand the interdependencies of our overall economy they've grown up too many generations removed from having dirt under the fingernails or swinging a hammer so they don't know reality they're going to try and legislate reality cram reality make it what they scream loudly it ought to be and they're going to fine harass jail condemn people who are against their amazing ideology and their amazing plans and somewhere along the way they're going to wreck it unless somehow we manage to prevent that but you should trust but verify as Reagan said you should hope but prepare as Martinson says so that's my message for today hope but prepare that's it thanks very much for listening today we'll be back with you next time and let me know what you think about those possibilities have I missed something all right bye-bye for now [Music]
Bidens Tax Increase Sends A Very Dark Signal – Peak Prosperity
Summary
Transcript
nothing is certain but death and taxes and the fact that authoritarian regimes end in Mass [Music] atrocities hello everyone I am Chris Martins and a Peak Prosperity today we are going to be discussing this which is the extremely troubling taxation proposals that just came out of Team Biden and uh they're extremely troubling n listen there's always calls for higher or lower taxes not that it's what this tells us about what they're really thinking I've got an explosive unique way of looking at this potentially tell me what you think it starts with this uh this is in Bloomberg so you know it's a real thing they're talking about capital gains now that got the headlines in this particular Story the capital gains it's a pretty ruinous approach to taxation well let me just show you what I'm talking about here what the this goes back to 1922 and this would be the highest proposed capital gains tax rate in over a 100 years and this is astonishing taking it all the way here from about 24% all the way up to 44.6% on capital gains and by the way when that's just at the federal level when you slap that on top of what the states are putting in there blue States turn out to be the worst who knew if only there was some way to predict that this is how things would go look at this Californians will face a combined federal and state tax rate of 59% hey citizen 60% of what's yours is actually ours okay and here's the problem uh we can have a debate all we want about what's the appropriate capital gains tax rate but in order to have a capital gain you had to have had Capital the capital was already taxed right if I'm going to put money into IBM for instance I have to earn that money from that's after tax money I put that in and then I get a gain and the government says well in certain circumstances we think 60% of that belongs to us oh by the way if you have losses on that those are on you but if you have gains well we need those gains it's totally asymmetrical unfair how did we get here to this point where the government feels entitled and this is an entitlement problem feels entitled to more than half of what you earn in wealth now if you've been following the great taking series that been doing as well all of my other work you understand that this this isn't like some future prediction I'm making here this is simple Trend extrapolation more and more and more is going to be taken from fewer and fewer people in order to balance this whole thing out in the minds of these diluted DC people but in fact what they're going to do is they're going to kill the goose that laid the golden egg they are going to destroy Prosperity these are Prosperity destroying numbers right here uh let's see New Jersey 55.3% and Oregon 54 Minnesota 54 New York State 53 more than half these states believe that in combination with the federal government working hand inand that they have the right to take more than half of whatever gains you might have so let's go into this law a little bit obviously a huge battle is going to be looming this is going to be a giant political battle quote President Joe Biden's budget proposal which calls for sweeping tax increases on corporations and the wealthy uh is the opening round of illumining tax fight set to consume Washington next year Congress forced into tough negotiations over the future of the tax code with large portions of former president Donald Trump's 2017 Cuts set to expire at the end of 2025 many lower and middle inome households will see a tax increase if lawmakers don't act providing motivation for both Democrats and Republicans so lower and middle class household will actually see a tax hike so what are you going to do well we're totally in the soak the rich stage part of this story now we're getting closer to that and that therein lies underneath that once you decode what that actually means there's something very troubling lying under that okay carrying on quote Trump has vowed to push for the biggest tax cuts ever if return to power Biden meanwhile is seeking higher levies on large businesses and investors while pre preserving some of his Rivals Cuts oh no oh no he's not preserving really anything this is the most sweeping comprehensive grab bag of tax hikes that you've ever seen in your life so what a showdown I'll cut your taxes I'll ream you with taxes this is one of the most politically easy things to resolve I'm not a great political analyst but I will tell you telling people you're going to hike the Jesus out of their taxes versus telling them you're going to cut their taxes uh is that's a no-brainer it's very easy to tell who wins that particular argument now a lot of rich people I know have been thinking up till now and I've been having weird conversations of late or maybe not unexpected conversations but unusual I should say not weird unusual conversations where rich people are starting to figure out that they aren't safe just like poor people always knew and middle class always new even the wealthy are starting to understand they are not safe because well they're coming for everybody in this story that's what the great taking is about that's what all of these code changes are about and I'll show you much more especially part two of this about what that really means so Hey listen to make sense of all of this because the great taking is very complicated I admit the legal code around all this stuff is very complicated we're going to be holding a great taking protect your wealth webinar by Peak Prosperity bringing in experts and we're going to talk about seven key strategies that you can pursue to protect your wealth maybe not all seven will apply to you but some of them certainly will so if you have wealth to protect come consider coming to that uh webinar it's going to be really good I'm pouring a lot of effort into that I'm going to make it just really worth your time worth every penny that'll be on June 15th it's live but of course if you get a ticket you can always Replay that at your leisure later uh at any point in time and also whether you attend live or not um you can review it later so when I say some are so poor or some people are so poor they only have money um what I'm really talking about here is that listen if all you have is money you're going to need to have some backup strategies to that skills land real land hard assets productive wealth these are all things that actually can do really well in a time of great strife and the argument I'm making here today the case I'm laying out is that we're headed towards a period of great Strife because these midwit these administrators in charge they don't know what they're doing they're too far disconnected from reality they know not what they do and so they are going to wreck this thing and the path that we're on this isn't a prediction this is a trend extrapolation we're already headed this direction and we're picking up steam we're going faster and faster so I just want to be clear about what I'm doing here and what I do routinely for my subscribers is I connect dots I put them together in a in a set of ways and you either agree with that or not but if you see it my way you realize the kind of trouble we're in so this has really turned into a soak the rich thing this got all the headlines the capital gains proposed increase I showed you the chart of that going up to 44.6% quote uh budget proposal and this is a budget proposal somehow it's influencing taxes would increase the capital gains tax rate to equalize the taxation of investment and wage income so okay all right all right all right capital gains and and income that's fine but why what why why not bring the income tax down to the level of the capital gains rate rather than saying oh our only option is to equalize them we must bring this one up to these other high ones the government spends too much money it wastes money like crazy we run in the United States a so-called Department of Defense which is not doing anything defensive it's out there being offensive we are conducting all kinds of ruinous foreign policies that are way too expensive we're blowing money left right and Center on really dumb things in this country and we are not investing in things like infrastructure high-speed trains uh high-speed internet you can get way better internet in a cafe in the Philippines up to your ankles in swampy water from their local cafe than you can in most places in the United States it is a disgusting tragedy so so I say if you can't spend it well you should have less of it not more of it so cut government spending is the option they never take okay carrying on um this would mean that capital gains for those earning at least a million would be taxed at a base rate of 39.6% up from 20% Biden is proposing to increase the 3 88% Medicare tax to 5% for those earning at least $400,000 to short up the program's trust fund and that would mean the richest taxpayers would pay a 44.6% federal rate on investment income and other earnings now well let's carry on one to that last part in green the plan also calls for taxing assets when an owner dies ending a benefit that allowed the unrealized depreciation to go untaxed when transferred to an air so so they want to make sure that if anything you had appreciated in value the government says we have a right to that we we you got to give us a piece of that you got to little taste of that action that's you know but as I'll show you later a lot of times the a majority if not the preponderance or majority or all of the increase in the price of an asset is because of inflation and the government makes the inflation happen which is a tax and then they tax you on the tax so that's a more complicated story but we'll get there but this I mean if only there were some signs like uh AOC last year um wearing her very expensive uh ironically enough tax the rich dress it's some galab ball for a bunch of rich people so make of that what you will now what's interesting is that this is actually specifically targeting if we think of capital gains really mainly applying to stocks and they don't they they apply to businesses that you've you've bought uh the small businesses medium-sized businesses would be heavily impacted by this it could be bonds too but thinking about capital gains in terms of stocks it's interesting that 92 a. half% of all stocks are owned by the top 10% of households those top 10% of households also already pay the majority of taxes and also tend to be the political donor class who are giving the most money to either one of the two branches of the unip party right so it's kind of weird for the Democrats to be saying you know it would be a great idea right in an election year I know let's come after let's promise to come after our biggest donors scratchy record moment right little odd now what's interesting here and to carry on with that taxing the tax idea Dylan lir here at Twitter the other day just tweeted out and said unrealized cap gains can never happen unrealized meaning you haven't actually sold the thing um but it but it's only for highet worths people will will claim no I reject their framing inflation is already the tool for covert wealth confiscation which is true and now they want to make the theft over Alliance share of realized capital gains today aren't even the result of asset appreciation or good Investments but instead a second order effective currency debasement that is inflation if I bought a a share of some stock for $100 and then my currency to Bases by half and it's worth $200 it's not worth 200 it's worth the same hundred just in a debase currency that's worth half as much if you follow that okay um an example of this slow creep is the bank secrecy Act of 1970 which required financial institutions to report transactions over $10,000 right 54 years later and the threshold is still 10K despite 10K in 1970 being worth 65k approximately in 2024 terms yeah that would be my you know um you know that would be more more suspicious right um oh sorry 85k um yeah so uh carrying on quote any and all attempts at justifying arbitrary thresholds especially in fiat currency terms which fluctuates mostly to the downside is it inflates away um for where wealth cont isation becomes legal and just must be outright rejected it's a steady encroachment of privacy Liberty property we are headed down an ugly path time to take a stand end quote totally agree with that Dylan lir 100% now this is an important concept I cover this in the crash course pretty extensively if you haven't seen that the inflation chapter alone is worth the price of admission and by the way it's a free online course uh that you can access at Peak prosperity.com and I discuss inflation a lot and it's a really important concept but it's never really talked about all that much Milton fredman said inflation is taxation without legislation so so what did he mean by that well consider that in December of this past year the inflation rate that was 2023 the inflation rate skyrocketed to a 40-year high of 7.5% for example of every $50,000 you've saved it's now actually worth $3500 less where did that $3,500 go it's like if you had 50,000 in the bank and the government sent you a tax bill and said send us $3,500 it'd be very clear you just got taxed when the government prints too much money and sends it off to Ukraine to get blown up or whatever they're doing with it right $2 trillion of excess printing this year next year next year next year those are those are those are it's a it's a tax only they didn't send you a bill they just overprinted and then your $50,000 has $3,500 less of purchasing power next next year and where did it go well it was spent already your purchasing power was printed up and spent by the government so that's why it's called Uh a hidden tax and it's a tax because I can't make inflation happen I don't have the power to print money and make your money worth less I don't I can't do that but the government can't so they hit you with that tax but then they hit you with that tax again so let's talk about taxing the tax how about this let's say I I bought and this is an investment advice this is just purely an example educational purposes only let's say I bought a a uh Nvidia last year I bought a share one share of Nvidia and it was 277 bucks exactly a year ago and oh no I sell it this year for $877 this is amazing the gains were $600 per share or that's a 216% gain fabulous trade way to go Chris okay now you might say okay you know that that's look at all those gains you had uh and since it's more than a year or it's exactly a year it's a long term capital gain so it' be subject to this new tax they're providing but what if I bought the S&P way back on March 1st 2014 it was at 1614 and then I sell it today at 5101 and that's also a 216% gain well they would both be taxed the same you you had this 216% gain we the government deserve access to that but at least 15% of those gains that I had in in example two there were were just inflation due to if you use the CPI calculator at you know over there at the at US Government um I actually think that that those the CPI is wrong I have a lot of data for that if you saw I interviewed um Ed Bowski of the chapwood index right showing that inflation is actually closer to 7 8 9 10 12% per year in all your major metropolitan areas not 3 two 2 and a half 3 4% whatever they say it is so if we said that actually since 2014 we were we actually experienced an average inflation rate of 7% a year then 100% of my gains my my capital gains on riding the S&P from 1614 to 51001 were due to inflation I gained nothing I had no additional purchasing power but by the government taking half of that they said well we put this inflation tax on you and so you you got nowhere you basically your Holdings were were dead flat for over that 10year Horizon but now we're going to take half of that because look at the gains you had we're going to take half of that half of those gains belong to us right that's the argument they're making and it's interesting how come the government never offers an inflation adjustment on any gains H it's a really interesting question why not now carrying on from that same Bloomberg article they're talking about a billionaire tax here and Biden is proposing a 25% minimum tax rate on households worth at least 100 million so so that's a tax rate on their income so if you have 100 million in net worth so somehow you're going to have to tell the government what your net worth is I'm not clear how this gets implemented but that's another story for another day um they say they're currently paying an 8% rate on their income tax so look at that 8% to 25% they're saying hey and by the way 100 million is a c A- millionaire not a billionaire they're calling it a billionaire tax but if you have at least 100 million which is not a billion uh then your income tax rate is going to basically triple from 8% to 25% just over triple so again your Cent millionaires your those people tend to be your heavy donors because they can join me on camera three for a second how does this even make sense really team Biden is saying you know it would be a great idea why don't we tell the people who happen to be some of our heaviest supporters that we going to be just coming after them demonizing them and tripling their tax rate okay at any rate uh carrying on here for a second now what's interesting is is that back in 1913 uh you know when this all got started you had to ear a lot to even get to that 7% top bracket right so it was like you had a 1% income tax here rate oh let me get my little little pointer out you had a 1% marginal tax rate if you earned up to 20,000 which was the equivalent of $48,000 today a 1% tax rate somehow the government was happy enough and the country was fine it was building roads and was just about to fight a big world war it had industry and schools and was reasonably prosperous and growing and developing and it did all of that with the government taking just 1% of up to $480,000 of income equivalent and then you know by a million two you were you know was up to 2% and if you were earning somewhere you know up to 1.8 million it was taken 3% but to really crank out here to get up to the 6 7% bracket you had to be earning 12 to I believe this number would be what 24 million so you'd have to be earning 20 plus Mill earning 20 plus million equivalent dollarss in today's terms in order to hit that top tax rate of 7% and oh by the way back in 1913 there were 400 pages of tax code and today there are 74,000 uh 68 good luck complying with that I guarantee you you're out of compliance somewhere in that giant stack of gobble deg up there right it it's just ridiculous how how complicated all this is so um carrying on this is a com that redneck engineer left back in one of the Forum areas back at Peak Prosperity I think this was in a in a subscriber area so I wrote that there's not one single example of collectivist communist authoritarian regimes or states that didn't end up with mass atrocities on the back end reduced prosperity and generally awful living conditions for the masses and so redneck engineer wrote and why is that well it root what raises the standard of living is the application of reason to the problem of production of creating the things we need to survive and prosper what a rational mind most needs politically is to be left alone I agree to be unrestrained to be free a free mind can chase facts wherever they lead a free mind can uh innovate and in unexpected ways and it is uh Freedom which leads to Prosperity freedom is necessary for Prosperity freedom I agree everything we're talking about here more and more taxation with more and more laws and rules and you have to figure out some way through all that mess this is anti- freedom anti- Prosperity these people who are in charge right now are risking our entire Prosperity I need you to understand that and if you think you're insulated from this because you're rich you are mistaken this is going to affect all of us we're all living off the Golden Goose there's people coming out stabbing at it seeing if they can get that out now here's why this is really weird to me this is where I don't understand what's happening at all rules for rulers if you watch this uh I I post this every year for my subscribers it's free on YouTube check it out rules for rulers It's a Wonderful 19 minutes explaining how power works and one of the first lessons is that no man rules alone or no person and so you need to have your keys to power and here they're representing all these different keys so you could be king you could be team Biden you could be the White House you could be a senator you could be the head of an H OA you still need to know who the people are under you who are actually the people who are granting the power that you have here you might have the police the military business people your revolutionaries whatever these little icons represent so these you have to keep your keys to power happy that's what you have to do and you do that fundamentally by Distributing the treasure that's what all those little gold coins are supposed to represent there so think about this real quick then this is also in the budget um proposal for taxes from Team Biden real estate the budget proposal would eliminate a tax break known as like kind exchanges these are 1031 exchanges that allows wealthy investors also not so wealthy investors to avoid they say actually they should have used the word defer because it just allows you to defer the taxes for later that allows investors to defer paying taxes on the proceeds of a property sale if they reinvest those profits back in into another real estate deal these are the 1031 exchanges um these are a very big deal I'll show you more data on that in just a second but also oil and gas team Biden is renewing their call for Congress to End Tax incentives cherished by the oil and gas industry including a deduction for drilling cost a write-off for production from marginal Wells which is depletion allowance and a tax break under which mineral rights owners can claim some of the value of the oil and gases gas reserves removed from their property so the drilling and depletion uh tax breaks gone uh they're saying here or reduced heavily now this is this is bizarre see if you show me the incentive I'll show you the outcome and for all of its gobble and Labyrinthian ISM there is a certain intelligence behind government tax policies and basically they understand that they want to punish some things and they want to reward other things so what does the government like well it likes oil and gas coming out of the ground it likes houses for people to live in and it likes jobs and it those are the things it likes so the tax code is actually pretty favorable in those areas and they're saying nah you know what we're going to remove these things which have been a pillar of the American Prosperity experiment for a long time we can disagree with them we can argue about them we can chisel at them a little bit we can modify them but you don't just sort of like sweep them off the table like you're all done with that game of checkers right that's what's being proposed here and that's very troubling so when I tie this back into the rules for rulers I think you'll see what I'm thinking but just to go down this path because I know this affects a lot of people who are out there in real estate land including a lot of my followers the budget uh Biden's Budget on 1031 exchanges this comes from aou ac.com um a very reputable outfit who who has to help a lot of big clients figure these things out so US Department of Treasury released their General explanations for Biden's team Biden 2025 budget um which proposes hard limits to be set on the 1031 section quote The Proposal would permit deferrals of gains those again deferrals a right word here would permit deferrals of gain up to an aggregate amount of $500,000 for individuals or a million for married couples filing jointly annually for similar real estate exchanges so this would just so if if you had a $10 million building with $8 million of gains in it they'll let you right you know Shield 500,000 of that or a million of that as long as you roll that that amount into another real estate deal 500,000 folks if you've been paying attention doesn't go far in the world of real estate anymore so this would just be absolutely disruptive if they get this hey you know what they propose stuff like this all the time good chance this doesn't happen but again I don't care if it happens or not I care about the fact that they're proposing it at all here recording this in April of 2024 a presidential election year that's got a troubling implication again I'll get to that soon um carrying on quote any gains from 1031 exchanges above 500,000 or a million for married couples in a year would be recognized in the year of the exchange transfers the real property is subject to tax becomes income Capital goes to the uh capital gains portion of that and that's going to scoot up to if they're if they get their way up to 44.6% this is amazing this is a huge thing right continuing on from that same ACR article I said here however setting a $500,000 cap on these exchanges might hinder investors ability to engage in larger and more complex transactions of course potentially reducing liquidity in the real estate market consequently this could lead to a decrease in property transactions and oh by the way studies that have been conducted on this say well you know um this would uh cost of capital is going to increase GDP is going to contract and we know that this 1031 Act is supported approximately a million jobs created $48 billion of layer income and added nearly 00 billion to US GDP so this is really just an assault on the real estate sector and the economy of course um and so that's crazy and so what would happen the result of the budget proposal again from the ACR article is they say here quote the president's budget projects that capping 1031 exchanges would generate 1.86 billion in annual revenue hey uh how many Ukraine does that support not that many however considering that tax revenue from 1031 exchanges is roughly 10 times greater than the projected revenue from limiting them whoops it is mathematically clear that restricting 1031 exchanges would be an ineffective and counterproductive measure end quot that is it will not just fail it is guaranteed to fail and it's going to cost more and ruin things and it's going to be quite damaging now why would they do that because when the choice is either between doing the right thing or the wrong thing the the outcome is always assured this Administration and these sorts of people they will always do the wrong thing aristal said evil destroys even itself it just does evil the this is just this is my my definition of evil is a force that wants to destroy itself it wants to destroy others an evil person is miserable but doesn't work on reducing their misery and becoming happier they work on making sure that they can make you as miserable as they are right um they don't understand how to build businesses they understand how to tax them steal from them destroy them regulate them administrate them uh all of that that's just that's just how it rolls right that's that's really where we are um the only Power of evil is to destroy itself this is what Matias desmat talked about this all this evil stuff that we're seeing now with the totalitarian and mass psychosis formations that are happening out there is that they end in Mass atrocities and they burn themselves out they destroy themselves but they also destroy everything else along the way this is why this is so important to actually see these tax code proposals for what they are is really important at this point in time um Psalm 34:21 says evil will slay the wicked so it destroys itself right and the haters of the righteous will be condemned this is really we're at that choice moment where every person watching this listening to this or not has to make a decision in this in these in these moments but in these next few years where do you stand which who are you standing with and why this is getting really quite foundational we're kind of at the basement level we're down to core values and core principles at this point in time all right so how about this though to carry on just this is also from that uh Bloomberg article talking about this Biden tax proposal something called carried interest so carried interest tax break is used by private Equity Fund managers to lower their tax bills that would be eliminated under the Biden plan under current law investment fund managers can pay the 20% capital gains rate on a portion of their incomes that would otherwise be subject to the 30% 37% top individual income rate so these are the hedge funds and private Equity right they they charge say two and 20 they're going to take 2% plus 20% of any gains they tend to they they develop and generate that's what the 220 rule is so they used to getx taxed on that at 20% because that was a capital gains and now they're going to it's called carried interest do away with that now we can argue is that a good thing a Bad Thing H plenty of arguments either way but what we can't argue is that a lot of these people are the donor class to the DNC that's indisputable okay and how about corporations so they want to globalize this taxation thing and set minimum rates so Trump's 2017 corporate tax cut here quoting uh tax cut would get significantly rolled back bringing the top rate to 28% from 21% The Proposal also calls for increasing the taxes us companies owe on their foreign earnings to 21% doubling the 10.5% rate in Trump's tax law the um as well uh they want to set a global minimum tax which would allow the US to tax a company if it's paying below a 15% rate and the country where it's headquartered also isn't applying the 15% minimum rule so if a company's operating in a different country and it isn't paying that 15% minimum rate United States is going to unilaterally decide to tax that company at the 15% rate and Biden would also impose a 21% corporate minimum tax on domestic companies um an increase from the current 15% so that's a good 50% increase in that number which means some businesses are restricted from using all of their tax breaks so this basic wholesale rewriting but again a lot of these corporations are the donor classes to the DNC and again this isn't Biden's proposal whenever they say Biden's proposal you need to think team Biden whoever his handlers are because we know it's not Biden himself but whoever the people are who have been administrating behind the scenes they think this is a good idea and notice what they're hitting here right corporations wealthy individuals Wall Street uh this is pretty this is an allout assault on what I would have considered their power base that is the keys to power so um and by the way the proposal called just crumbs absolute crumbs for the bottom of society the Biden they would like oh it would expand the child tax credit to $3,600 up from 2000 oo thanks for the $1,600 big guy did you see any of my Ukraine money in with that um so at any rate that crumbs an absolute crumb that's all that's in here right so guess what the rules for rulers back to this idea because this is the shocking part about this whole thing I'm I've got here finally so you you've seen what the all the dry languages of these tax proposals then maybe even they all get rejected none of that happens it doesn't matter because of the Optics of what those are telling us so the normal rule job number one for anybody in power is you distribute The Treasure of the nation right so that's the dollars in this case dollars come in you section them out and off they go to your people who are busy who are your keys to power okay and so these are your voting blocks and these are certain government ad you know you got to keep the Army happy and you want to keep if you're a mayor you want to keep the police happy there's just this just the ru it's just rules if you haven't watched rules for rulers go watch it there the link down below um super easy to find on YouTube so that's your job that's what you do you distribute the dollars so let's think about the power blocks here well real estate is a very powerful Block in this story always has been and so we're looking at the elimination or or a severe restriction on 1031 exchanges so boom that block is out Wall Street through carried interest in the capital gains this no bueno no bueno going against Wall Street and oil and gas this very powerful block has been for a long time for good reason the wealth of a Nation comes from its energy you know I talk about this all the time if you have energy you can have an economy and things on top of that everything is a derivative of having energy so to begin smacking at this is is a big change and it's odd because it's a powerful block and then for the just citizens ordinary well the top 10% these are your your top donors um typically too so there's capital gains and then also estate taxes like changing the estate taxes like like no longer allowed to build up a business and pass it off to your grandchild right at you know just here it is here's the business I built it up here you go I'm passing this on oh no we're going to have to tax that this is going to smash Family Farms small businesses you're going to have to sell them because of the tax implications destroying them as a family business so this is an absolute assault on our ability to be productive and have continuity across our Generations right they don't want that what they want is everybody dependent handouts Central Bank digital currencies 15 minute cities you name it blah blah blah blah blah this is what this is this is a smashing grab and this is astonishing because think this through when would you in a presidential election year decide that you're going to throw these people who are your keys to power under the bus I'll tell you when according to the rules for rulers the keys necessary to gain power are not the same keys that are that are needed to keep it so there's when you have a revolution in a country that's what this little icon from the video shows when there's a revolution the people who were your revolutionaries the people who brought you to that point well sometimes you have to put a bullet in a couple of them because they're not the same people you need for the next stage of this whole thing so the revolutionaries aren't the same people you need for part two of the story so if this message is hey you people who built capital and had money we're going to just we no longer need you and we're going to Telegraph that to you very very clearly the question is what sort of a revolution is underway and what is the end what what under what future state do we not need real estate Wall Street oil and gas and our most um our wealthiest most productive people under what future scenario do we want to signal to those constituencies those blocks that their services are no longer needed what does that mean what does it mean that team Biden no longer believes it needs the former power blocks and so this is a replacement cycle hey we're going to tax you out we're going to take 60 did I hear 70 do I hear 75 do I hear 80 do I hear 100% let's just take it all that's the path we're on that's not a pro prognostication that is a trend extrapolation that's the path we're on okay why are we on that path nobody ever talks about team bid like well here's why we need all that money you know here's what we're going to do with it and here's how it benefits you it's just like they just tell you and you have to accept it or not uh your choice so that's really weird because you know again Wall Street they say here spent over 74 million to back Joe Biden's run for president that's just Wall Street alone but down below the financial services industry collectively donated one 1.96 billion to house senate presidential candidate seeking election in the 2019 2020 cycle so this is astonishing and they spend another um you know nearly billion dollars lobbying so they spent a lot of they put a lot into this right these is your keys to this are your keys to power these people hey you people we're going to Triple your taxes or more or double triple them right okay what does that mean I can think of only two possibili and I'm going to let you read them because these are sensitive subjects and you can read them for yourself this would be one this is one possibility here's another possibility could be that too I don't know why these two things necessarily but these are the only reason I can think that you would throw your main keys to power your keys under the bus is because you're not worried you you no longer need their Services there is a null hypothesis which is yes team Biden they in this story really are politically super tone death morons and this is the dumbest pre-election move ever but that's not what's happening here that that I can pretty safely conclude the null hypothesis is not is not viable so we have to consider some other possibilities if you have other possibilities please let me know what they are you know are we going to discover that UFOs are real is is there some free energy coming soon so money's no longer needed is there a cbdc on the way so all of this is irrelevant who knows but this is what's occurring to me in an election year okay as a reminder these are just a few of the fees and taxes that an American now faces here in 2024 it's just all over the place right you got your library card fees if there s there's such a thing as library cards anymore you got cigarette tax court fees dog license tax you got driver's license fees there's garbage tax we we have to pay to get our garbage dumped I have to take it somewhere and pay that's that's town I live in uh you got a gun ownership fees gift taxes Social Security taxes unemployment taxes taxes taxes taxes taxes taxes taxes by the way it was a much simpler thing back in in uh 200 I mean sorry 1913 very very simple um what was going on and just how easy it was there were almost no no taxes and fees to worry about um not compared to this particular list and so this this is all about control this is nothing this is not reasonable it's not ordinary it's not usual it has nothing to do with how the country was founded or what it stands for hopefully so I'm going to have to piece all of this together for my subscribers that's going to be in part two and of course every week I do a part one part two uh I go a little bit deeper a little bit farther and mostly I go into also Solutions and things that people need to be considering and thinking about as they process all of this information um I would love to have you become a subscriber at Prosperity it is an incredible value I give you my absolute best I'm doing three scouting reports a week right now plus this one that you're watching now which is a deep dive which has a part one and a part two and I'm in the comments there it's 247 full contact work for me because of the times we live in regardless of whether you come to Peak Prosperity or not please do what you need to do to become resilient and prepared there are hard times on the way because these clowns they have a plan they want to build back better or whatever their story is in order to build it back better they have to wreck it first they know not what they do they don't understand complex systems they don't understand the interdependencies of our overall economy they've grown up too many generations removed from having dirt under the fingernails or swinging a hammer so they don't know reality they're going to try and legislate reality cram reality make it what they scream loudly it ought to be and they're going to fine harass jail condemn people who are against their amazing ideology and their amazing plans and somewhere along the way they're going to wreck it unless somehow we manage to prevent that but you should trust but verify as Reagan said you should hope but prepare as Martinson says so that's my message for today hope but prepare that's it thanks very much for listening today we'll be back with you next time and let me know what you think about those possibilities have I missed something all right bye-bye for now [Music]