Here are my thoughts on the new 2023 budget and tax plan, where the money is going, and the impact this could have throughout the stock market and economy – Enjoy! Add me on Instagram: GPStephan
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THE NEW 2023 TAX PLAN CHANGES:
28% CORPORATE INCOME TAX (UP FROM 21%)
https://taxfoundation.org/increase-corporate-tax-rate-28-percent/
They estimated that a 28% corporate tax rate would reduce GDP by 0.7% – or, $160 billion dollars, stock and wages would marginally decline…and, 138,000 full time jobs would be lost. Thankfully, they estimate that the “loss” would be gradual, but it could amount to a GDP decline of nearly $720 billion dollars over 10 years…which, is LARGER than the $694 billion of tax revenue that would be generated in its place.
As a result, they believe that – long term – a higher corporate tax would result in incomes dropping by 1.5%-2%. On top of that, another study found that raising corporate taxes was the “most harmful for growth,” suggesting – INSTEAD – that we tax “consumption,” or “recurring tax on immovable property” – which, is another way of saying: higher real estate taxes.
TAXING UNREALIZED CAPITAL GAINS
ONE: It sets the precedent that unrealized profits can be taxed – which, some argue is unconstitutional. For example, “the Constitution denies Congress the power to levy a direct tax unless it’s “apportioned among the several states” in proportion to population. That means that the tax must be spread evenly among every person in every state.”
https://www.heritage.org/taxes/commentary/democrats-proposed-tax-unrealized-capital-gains-likely-unconstitutional
TWO: It would force business owners, who might not have the cash or liquidity to pay this tax bill, to sell a portion of their ownership, potentially losing control of their company – or, sending the stock price falling by allowing more shares to enter the market.
THREE: It sets a dangerous precedent that unrealized gains CAN BE TAXED – and, that threshold becomes an arbitrary number that could be changed over time. After all, what’s to stop them from eventually passing this on to business owners with more than $50 million…down to $10 million…down to $1 million…and, pretty soon – everyone pays some type of unrealized capital gain depending on how well they do?
TOP INDIVIDUAL TAX RATE OF 39.6%
That means, if we use the 2022 tax table as an example…the income that people make over $539,900 would NOW be taxed at 39.6%, instead of 37%….so, that would mean a tax INCREASE of $2600 per $100,000 you make ABOVE $540,000 per year…and, it would raise $186.8 billion.
https://taxfoundation.org/2022-tax-brackets/
Of course, there are OTHER tax increases within this plan, as well…from repealing the 1031 exchange if you have more than $500,000 in profit…getting rid of oil and drilling tax deductions…considering coal royalties to be “income” versus a capital gain…modifying estate and gift rules…and, about 30 other increases throughout 120 pages of text that takes WAYYYY too long to read through….
https://www.novoco.com/sites/default/files/atoms/files/treasury-general-explanations-fy-23-budget-03282022.pdf
Hope this helps clarify things!
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Just think of those poor Billionaires sitting on their yachts! They are the real people suffering.
We just got destroyed on our tax returns due to Biden. And we are not in that wealthy category either
Retire Biden
Unrealized gains tax DOES NOT MAKE ANY SENSE and if you think it does your an idot.
As in Elon Musk selling some of his shares to pay taxes on unrealized gains.
That is why billionaires, and millionaires pay less overall. They have these stocks, etc, which are not taxed until they are sold.
Keep voting blue you idiots!
Uh….you really think giving the IRS more tax money would make the IRS customer support really want to answer your tax questions
What they can do is have sort off lavy wealth tax like 0.05-0.1% on capital assets held as investments.
The billionaires wealth is generated because they underpay their staff and don’t give benefits. On the backs of the middle and low income earners, those on the front line and actually the foundation of the products success.
Everyone knows that they get taxed off the top then taxed on much of the money they spend. But the wealthy will offset the tax by increasing the price of goods and services so we will be triple taxed by that point. Someone living paycheck to paycheck will be paying at least 40% taxes. They will inevitably sell stuff to generate a little income and they will be taxed on that too.
Taxing unrealized gains is squarely targeted at the extremely wealthy. And will be a good swipe at ending perpetual wealth. The gigs up to many people know time to change the rules
Thank your local WOKE DEMOCRAT voter who only votes for ppl because they are triggered by the other party instead of educating themselves they let CNN tell them who to vote for
I invested 100k in 1922 now I have less purchasing power because of inflation, thanks joe biden >:(
THIS IS WHAT U VOTED FOR!!!
FJB!!!!!
Tax the rich!
Those people bidens adminstration these people could care less about how hard people have to work to put food on table ,biden has wrecked americans lives
i honestly feel like the income tax on vested but unsold RSUs feels like a variation of tax on unrealized capital gains. (obv different but feels similar)
An other reason the taxe rate on capital gains and dividends is lower, is because corporations profits are already taxed, so it's actually a double taxation
Great video! All great points!
eat the rich. we are coming for you. Communist revolution is on the brink. Abolish private property.
I've noticed that your references are from right-leaning to far right websites. This is a bias viewpoint that I really think you should research more with a broader perspective with different viewpoints.
The fact that Graham is okay with taxes going up is why I don't want California's moving to my state