Have you guys realized that if Joe Biden gets his way PM’s might be the only way to build wealth.

In case you don’t know Joe Biden is proposing a 44% tax on capital gains and a tax on unrealized capital gains, along with sanctions on other countries.

So let’s start with capital gains. The market historically provides an 8% return, 44% of that would be taking just about half your money, so you’ll be left with a little over 4% return on investment. Then don’t forget that during good times inflation is 2% which you have to deduct from your profit, which gives you a measly 2% return.

As hard as it is for a middle/working class person to put away some money with all the discipline and sacrifice it takes would it even be worth it just for 2%? How can you really build wealth like that? You might as well go out and spend the money. At least you’ll get to have fun right.

Not to mention that if this inflation continues, which sanctions guarantees that it will, you’ll come out losing if inflation is 4%. Biden isn’t taking inflation into account. He’s saying inflation is just in our imagination that the economy is good. So inflation is 4% and you really didn’t make any money, but Biden says you did and he wants his cut.

Now let’s get to the unrealized capital gains tax. Which means they will tax you just for having investments if they go up. Now on top of sacrifice and living on less you will have a bill to pay for having investments.

That means you will have to pay a tax for having investments, then you’ll have to pay a tax on it again when you sell it. That’s even if you make any money on it.

Now let’s get into real life senerios. Let’s say you have some hardship like your job cutting your hours. Now you don’t have extra money to keep investing. Instead your trying hard not to sell your investments. You figure that you can get by on Ramen noodles and hopefully not dip into your investments. Guess again because now you have a tax to pay just for having investments. So you might be forced to sell just to pay the tax.

Then let’s say all these policies are making the USA a bad place to invest. With the taxes and the higher cost of goods due to sanctions. China and the BRICS countries are doing well so why not just invest there? But no you can’t because of sanctions. It’s illegal now.

So stocks are just a hassle and a waste of time now and you cant invest in emerging markets. So unless you have enough money for real estate you might have to stick with silver and gold. You can still walk into your LCS, look around to make sure no cops or Antifa see you and buy Silver or Gold in cash. Then Biden won’t know you have it to try and take that from you too.