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%)
Raising the Corporate Rate to 28 Percent Reduces GDP by $720 Billion Over Ten Years
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.
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….
Hope this helps clarify things!
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“52% tax & unrealized gains tax” *laughs in scandinavian*
Tax the rich and STOP crying.
@GOP wants to tax POOR penniless people.
In the UK we cut the corporation tax rate from 26% in 2010 to 19% in 2020 and in that time the amount of tax revenue generated went from $47billion in 2010 to around $80billion in 2020 – cutting taxes or keeping them low works!
Lol who cares we are in a recession! Hope you all loose 50% + of your technology stocks 😀
Wow. Why is that?
This guy is such a buffoon
Biden is a demonic pedophile traitor of humanity & is probably owned by Ukrainian corruption, it’s every Americans job to pay as little taxes as possible & if you are mid to low income, don’t.
i can hear that Vegas desert raspiness creeping into your voice
This plan is horrendous, do not think it won’t effect the everyday person eventually. The fact that the government is floating these ideas…very disturbing.
When does ‘Orange Man Bad’ stop being a good excuse to destroy the country?
Joe and Jill Bidens Income
* 2016 $396,456
* 2017-2019 $16,596,979
The crash will come by July followed by food shortages just for fun.
I agree.
Noobs, in my country it can reach 70%
49% income tax + 21% + 1266,7 euros entrepreneur fee/per month
(That’s the maximum)
What is this transcript thing. Damn. Seems like a lot of work
Reading the comments it’s clear the audience is not from where I’m from in the US so I will give u all the minority prospective (or at least my prospective). I have recently started my long and exhausting journey to financial independence. Really I’m still in the learning stages, but I’m making the small moves that I can afford to hopefully get me where I’m trying to go. Although I understand what Graham is saying in this video it still doesn’t effect me as much as most of u who are in here commenting. I’ve noticed a lot of big numbers being thrown around and it’s hard for a person like me to care about your 100M (even in unrealized gains) being taxed more because either way I lose. If you tax the rich they up the price. If you give the rich a break they just invest those breaks for themselves. Either way I’m still living paycheck to paycheck surviving the way I have my entire life. That’s why democrats looks so much more enticing for lower class to follow. They bring a delusion that the poor can be rich just by taxing more from the rich… My point being don’t blame minorities or lower class for voting democratic when they are just hoping to not have to live the way they are. Really I believe the answer is educating people on money, taxes, and credit properly, but everyone has an opinion and it’s hard to find out what’s real and what is a scam. My parents didn’t teach me about money in that sense because they never knew. I’m trying to break the cycle and educate/elevate my family but it’s hard starting from the ground… But great video and explanation Graham. Although I one day hope to join u all in being upset about these tax changes just wanted to let u know how us pions feel and why lol. Have a good one.
Thanks for your insight
The rich don’t pay taxes, they hire attorneys to take advantage of tax loopholes and dump money into tax havens in the Bahamas . The poor and middle class are left behind to foot the bill
The poor and middle class don’t lobby Congress.
Unrealized gain tax? No thanks.
The people who support such taxes tend to be either jealous of the wealthy or, in the case of Graham, simply one who goes along with this by saying he supports higher taxes just to be popular.
Dude…. every single thumbnail you have made is a click bait setup. I love your content but all bullshit aside, I’ve skipped majority of them lately for that reason alone. I don’t like to feel like I’m being tricked to watch something.
There are tons of YouTubers (like me). A lot of the underrated ones try a lot harder to push out content that has more substance. 😉
Lets go Brandon!
Why not a tax on loans with a portfolio as collateral?
Why would we want to discourage loans? Maybe we should lower tax rates.
@Michael Gordon As per my previous comment, not all loans just those with a portfolio of stocks as collateral.
Tax the Poop
Why not just tax HNW individuals on loans they take against assets at long-term capital gains rate?
Thank the Democrats
Did Graham vote for Trump?
Graham, I love your content, but it feels like your “billionaire’s tax” discussion missed out on a lot of points. You mentioned, as an example, a business owner who operates a $500 million dollar business and now has to sell stock and decrease his controlling percentage, when he’s never gone and realized a profit on his business. However, here you should have discussed the Buy, Borrow, Die philosophy. For example, here the business owner could borrow (and probably already has if he has a competent financial advisor) a very large amount at a very low percentage of interest collateralized against his stock.
Additionally, you probably should have brought more attention to the fact that the “billionaire’s tax” would not apply to small business owners (depending on your definition) and that the 20% minimum tax would be made up of the Difference between the 20% minimum tax and what percentage has already been paid by their other taxable events. Lastly, such a bill would only affect the top 0.01% of Americans.
Taxing unrealized gains is stupid no matter how you look at it. Why not close the loopholes instead of creating a stupid tax.
This tax plan also does not close a lot of loopholes that the very rich exploits, so even though it’s explicitly targeted at the very top of the wealth pyramid, they will still remain unscathed.
Hell yeah more taxes!
Tax the rich!
Biden & the democrats & globalist GOP are degenerate pedophile traitors of humanity. Not mincing words.
Even a “normal” wealth tax sounds better that that weird stuff. You own more that 5m dollars here a bill for 0.1% of your holdings a year.
taxing unrealized gains makes absolutely no sense. imagine you get taxed one year on all your “gains” then your investments value tanks to 0. you literally just paid taxes on the money you lost.
I put a 20% tax incentive on the like button. Thanks for the videos Gram!
Living in the wilderness sounds good about now with making your own food
As a woman that is on their third business. What you can’t write ✍️ about off this in looses and risk is real. But my workers were paid and taxes paid. These idiots are going to make the US less competitive as many of us will find another country all for a few bucks. Hope it was worth it.
I just wish they open loopholes for W2 filers as they do with Business owners.
Lower sales tax Have a graduated net worth and property tax.
I woke up and this is literally the first video I’m watching!
What if the IRS just set tax rates based on net worth Versus income? Corporate billionaires have to cash out something at some time to make an income and what if they just charge the higher tax rates on that? They may only use 50 to 100k but get taxed at the highest rates.
What a SHILL. Stop sticking your neck out for the left. This bill is BAD period!
lol… same thing happened last time companies got tax benefit. They bought back stocks, because companies are beholden to the stock market, not the country it is in.
Look at historic corporate tax rates and how our economy performed. Corporate tax rates are not only at historic lows, but the rates in our country are lower than other developed countries.
These studies are biased and politically motivated. Probably funded by corporations to boot.
Graham, you’re implementing a classic logical fallacy when you talk about unrealized capital gains tax. In informal logic, slippery slope is a fallacy in which a course of action is objected to on the grounds that once taken it will lead to additional actions until some undesirable consequence results. Also known as the slippery slope argument and the domino fallacy.
“Investment income is not guaranteed”. Yes this is true, but it’s important for folks to keep in mind that taxes only apply to profits, not the total money you get from selling. Which you showed in your example but it’s worth repeating. If you lose money on your investment you do not pay any taxes, if you gain money than only the profit amount is subject to any taxation and your original investment amount is untaxed.
Also we need to stop defunding the IRS if we want existing tax rules to be more effective and prevent folks from weaseling out of them.
Lol if government could make good use of funds haven’t seen it yet
Wasn’t this just a tax on unrealized gains for those with a net worth above 100 million? Like no one cares about multi-millionaires getting taxed. Not even a little bit. Seriously in poor taste you even made this video because the majority of people don’t realize how the code is being proposed and you sure didn’t help them
Let’s go Brandon
Most billionaires pay “0%” tax. loopholes through taxes
No
No one needs the irs lol
And when you say I we us support higher taxes No that’s dumb and not the problem
Other then that I very much like this video
I actually did wake up and wanted to watch a video about taxes today!
Just prevent banks from allowing the use of stock as collateral for loans… easy solution, forcing them to sell stock to take a loan
This comunist government is a disgrace
Say it with me:
Making more and raising taxes would not solve anything.
This is very informative, thanks Graham.
You get what you vote for….
This losers we have in office are the most saddest people in life. They wanna tax everything
Don’t we already have an unrealized gain tax with property tax? Every year my home value is assessed by the county and a tax property tax bill is based on increased home value. I didn’t realize the gain, because I didn’t sell the house, but I did pay a tax on the gain. Please correct me if I’m wrong
Giving the IRS more funding. That’s I losing battle almost everyone has some sort of distain for the IRS. And for good reason
Wah wah keep crying
The Fed is raising interest rates and decreasing the printing of money meant to prop up the Covid economy. Raising taxes on unrealized gains and incomes will, in this environment, cause unintended consequences and uncertainty. No sane elected officials should support such a high risk/low reward scheme.
This puppet president and his band reckless misfits have placed all there stock in the idea that most people are ignorant to the truth and most people want to live on handouts and most people are races and most people believe that the rich are evil bullies and that most people will gladly give up their dreams for a government check and a victim identity. But none of this is true. God made us to be great in every way. This group of accusers know exactly what they are doing. They aim to destroy and divide, behind the false narrative of charity and compassion. They aim to keep you distracted with nonsense. They want you to believe that if they have more control they will fix all your problems. They want to justify the need for them to step in and save you. You’re not suppose to notice that they are the creator of the problems. Big controlling governments will never work. It has been tried over and over. It comes with the major flaw that the humans at the top are just as dumb as anybody else. There will never be a government that can replace God
Trump, booming economy. Democrats, incoming recession. Do you see how that works you Trump haters.
Joe has got to go!
Highly unlikely to pass nowadays means it will pas
Biden suuuuuuuuuucks
is there a country with a more complex tax system than the US?
GREAT JOB .. you are a pro .great editing .great speaking .broke it down smooth in 12 minutes .i bet this one was tough u nailed it
They definitely don’t have the technology for it. You can’t even efile your tax return if you got negative agi cause the website don’t let you lol
Ok, if USA wants to kill its capitalism we may need another country for investing, could you make a video about it?
That’s exactly what I said to myself. Taxes are so important. I’ll tell you what I didn’t say when I woke up: I wonder how Kanye’s doing? He’s not important. Not a bit
There should be a mandatory tax % that EVERYONE has to pay. No ifs ands or buts.
We have to quit voting for these morons into power . Also can we fix our voting systems please . Different company maby .
Taxation is theft
the IRS wants their money sooner rather than later. makes sense.
Let’s go Brandon 🇺🇸
Taxation is theft
8:00 absolute bullshit . If you look statiscally billionaires make on avg way way higher in returns pa than any normal person or inflation just look at musk ,Jeff Bezos they made more than 300-400% in the past few years in unrealised stock gains . Iam damm sure they can afford selling off their stock to pay wealth tax, and billionaire owned companies are making record profits their stocks are in high value iam damm sure the effects you talk about are going to be minimal
Why is that in America corporation bailouts are ok but public bailouts from billionaires in called communism
I actually did wake up and think that…
I’m for the government to stop wasting funds and not raise taxes!
If everyone just stopped paying taxes, what would they do?
put you in a jail
The longer I live in this country the more I realize it has been overdue to eat the rich for many many many years.
Blame all the californians
And leftist conspiracy theorists who are delusional enough to deny election fraud
why pay taxes at all? I say fuckem!
Now you feel how us workers feel we get taxed the most
The fact that Graham is okay with taxes going up is why I don’t want California’s moving to my state
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.
eat the rich. we are coming for you. Communist revolution is on the brink. Abolish private property.
Great video! All great points!
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
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)
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
Tax the rich!
THIS IS WHAT U VOTED FOR!!!
FJB!!!!!
I invested 100k in 1922 now I have less purchasing power because of inflation, thanks joe biden >:(
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
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
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.
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.
Lol do you actually run a successful business? I highly doubt
What they can do is have sort off lavy wealth tax like 0.05-0.1% on capital assets held as investments.
Uh….you really think giving the IRS more tax money would make the IRS customer support really want to answer your tax questions
Keep voting blue you idiots!
That is why billionaires, and millionaires pay less overall. They have these stocks, etc, which are not taxed until they are sold.
As in Elon Musk selling some of his shares to pay taxes on unrealized gains.
Unrealized gains tax DOES NOT MAKE ANY SENSE and if you think it does your an idot.
We just got destroyed on our tax returns due to Biden. And we are not in that wealthy category either
Retire Biden
Just think of those poor Billionaires sitting on their yachts! They are the real people suffering.