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Language: en
some ideas that are being floated
economically right now are to tax
unrealized gains I found that terrifying
uh a $25,000 credit to first-time home
buyers how could that go wrong that
sounds great but um I have thoughts uh
medical debt forgiveness again sounds
amazing um but I I have a feeling that
that goes wrong um what there there's a
sort of General thing that groups those
three things together which is they all
sound awesome they sound like they're
going to make things better for people
that are struggling
why won't those things or maybe they
will but my thesis is those will
actually make things worse for people
that are struggling how could that ever
be
true well first of all just giving
people money to buy houses um you know
again apart from being unconstitutional
which which it is uh it's just going to
increase housing demand people are going
to take that money and use it to bid up
houses and so prices are going to go up
and so if you know if the problem is
that housing prices are too high giving
people money to buy houses is just going
to make those prices even higher so it
is a foolish uh misguided policy that is
going to worsen the very problem that
they're trying to solve I mean the the
real solution is to get the government
out of the housing market completely uh
they they they've been very involved in
it uh for a long time really started
under FDR but all these programs to make
homes more affordable have backfired and
made them a lot more expensive which is
exactly what the government does so that
that is the worst possible a policy
other than maybe this tax on unrealized
gains which number one again would also
be
unconstitutional because they want to
try to tax unrealized gains as if they
are income but they are not income they
are unrealized gains that is not income
income is a realized gain you have to
sell something and receive more than you
paid for it to have income that is
subject to tax under the 16th Amendment
see the reason have a 16th Amendment is
because the the Constitution basically
prohibited an income tax a direct tax
inless it was a portioned and the
government you know didn't want to
apportion it for all sorts of reasons
because the founding fathers didn't want
direct taxes they wanted direct taxes in
emergencies like a war so they made it
very difficult for the government to lay
a direct tax which is a tax that the
people have to pay directly to the
government as opposed to an excise tax
which they thought the government would
run on which is like a sales tax you
know tax on Alcohol
Tobacco gas you buy a product the tax is
there you pay it easy you don't need an
accountant you don't need to you know
file a return you don't need to you know
you know risk going to jail right it's
very simple to pay an excise tax so that
was how the government was supposed to
run well when they initially wanted to
impose the income tax the politicians
said look will
tax uh the rich and the middle class
won't have to pay taxes anymore we'll
get rid of the tariffs that you guys
have been paying and we're going to tax
the carnegies and the the Vanderbilts
and the Rockefellers this income tax and
so that's how we got it because the
public voted for a tax they didn't
believe they would ever have to pay but
of course now the middle class pays
taxes that nobody nobody would have
imagined Carnegie and Rockefeller and
Vanderbilt would have paid the initial
tax was I think capped at 4% on on the
billionaires right it was a tiny little
tax but the 16th Amendment is what
authorized it but it has to be on income
so the only direct tax that can be
constitutionally levied without
apportionment is an income tax so now if
the government says we're going to try
to tax the unrealized gains that you
have on an asset that you own that is
not an income tax that is a property tax
they're taxing your stocks they're
taxing real estate they're taxing the
asset that has appreciated so that is
completely
unconstitutional but now let's assume
that they do it anyway right and the
Supreme Court for whatever reason
doesn't strike it down it would be a
complete disaster to impose that type of
tax because it would destroy the economy
because anybody that owns these
appreciated assets would be forced to
sell the assets to pay the
tax and you would destroy the
accumulated capital of the country I
mean the the key to capitalism is
capital you want to allow Capital to
accumulate because that's you know what
drives the economy that's what helps
produce all the goods and services is
the fact that we have Capital but if we
have to destroy the capital so that we
could pay a tax to the government we're
just you know turning all that Capital
into consumption so it would be highly
inflationary it would be very
economically destructive lots of people
would try to figure out how to get the
hell out of the country uh nobody would
want to start a business here anymore
nobody would want to own assets here
anymore I mean it would be a horrible
tax
economically uh even you know the apart
from the fact that it's illegal to
actually do it but and again if they do
pass something like this remember it's
the camel's nose Under the Tent that's
always how a new tax is sold it's sold
to the
voter with a promise that you won't have
to pay it here is a new tax that some
rich guy is going to pay and it's not
going to cost you
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impact oh okay yes I'm I'm I'm in favor
of that but then once they they get it
past it rapidly
changes uh so that now the very people
who were told they wouldn't have to pay
the tax are the ones that pay the most
the middle class suffers the biggest
burden from a tax that they never were
even going to pay and in fact the
withholding tax didn't even start until
the second world war so even though we
passed the income tax in 1913 nobody had
taxes withheld from their pay until 1943
and that was because we were fighting a
war and so the government said hey we
need to do this temporarily because you
know we got to fight this war we need
the money
and so we got that temporary withholding
tax and of course we still have it here
it is
2024 and people are still having taxes
withheld from their pay but again this
is why I mean if we tied voting to
taxation that would be that would be
another way you could do it because
people is it's very easy to vote for a
tax that you're not going to have to pay
because that's really like voting for
theft a politician says yeah vote for me
and I'm going to steal money from this
rich guy and give it to you well okay
right whose vote do you lose well I I
lose the vote of the rich guy but
there's not as many of those uh as as
there are the people who are going to
get the stolen money and so that's what
happens but the the all these policies
that she's that she's proposing on top
of the you know the price gouging I mean
there is no price gouging uh the prices
are set by supply and demand I mean that
I mean the prices are what the prices
are I mean especially supermarkets I
mean supermarkets grocery stores are
highly competitive they have razor thin
margins nobody can gouge because they
would go out of business I mean You' go
shop someplace else I mean every
Supermarket is trying to give the
customer the best deal they possibly can
you know so prices prices are low but
the reason they've gone up is because
the government's created inflation and
so prices have got to go up when the
government creates inflation I mean if
the supermarkets or grocery stores
didn't raise their prices they'd go out
of business and in fact that's what
these price controls would do they would
result in a lot of grocery stores going
out of business especially in the inner
cities in the communities where they
have higher costs uh you know there's
higher Insurance higher crime higher
minimum wages I mean those are going to
be the first stores to shut down and uh
and so you know the food's not going to
be there right there's not going to be
any you know again you're going to have
to wait in line for a long time because
they're going to end up rashing what
food they have left uh and to the extent
that you really want to get something
you're going to buy it legally on the
black market uh and you know it's going
to cost a lot more so everything that
she has proposed is just going to make
the problems worse you know the high
cost of housing the high cost of food is
because of the government creating
inflation and everything um Harris wants
to do is to create even more inflation
and she in fact that was the biggest
irony was the inflation reduction Act
was an act to increase inflation like I
mean if I mean there's no truth in
legislating right if there was I mean
they would they'd all be in jail for the
inflation reduction act because it's
false advertising it's lying the
inflation reduction act increased
inflation because it they expanded the
money supply they voted for the
government to spend more money that the
Fed was going to have to print right so
that was that was the cre inflation
creation act in fact it was really the
green New Deal relabeled so the public
would would would would would accept it
and now they want to claim credit hey we
passed the inflation reduction act yeah
that was just the title right in fact if
you want to know what a government bill
is going to do just read the title and
then it's the opposite like if they pass
tax simplification it's going to make
taxes a lot more complicated they they
tend to put a title on a bill that is
the opposite of what the bill is
actually going to
achieve that's good times why why are
price controls impossible to do well
like if they were going to go in this
and really try to be nuanced and and
understand I'm dealing with a company
that has razor thin margins um we don't
want to crush these small businesses we
know most people are doing it right we
just really want to make sure um that
everybody's taken care of why
fundamentally does that still go
wrong well first of all in order for the
government to you know try to figure out
what the price should be of any given
item because first of all there's so
many different items on the show right
so some government bureaucratic board is
going to have to be appointed and
they're going to have to figure out what
the price of a banana should be or what
you know what what the price of you know
a can of Coca colola should be or you
know all these different items who's
going to do that how much is that going
to cost and then how are the
supermarkets going to comply with these
rules and regulations how are they going
to prove to the government that the
prices they're charging are you know
within what their requirements are all
of this is going to cost a lot of money
to administer where's that money going
to come from where where are the grocery
stores going to get all the money
they're going to have to hire a bunch of
people now to fill out forms and to keep
track of numbers and to get the
permission from the government to char
where they going to get all that money
they got to raise their prices so
anything that the government does that
imposes more regulation on a business is
going to result in in in higher prices
for whatever business is being regulated
but also they don't need to do that they
can't do that we already have something
called supply and demand and we have
competition those things together set
prices and it prevents somebody from
ripping off the customer because while I
don't think everybody is smart enough to
vote I do think everybody is smart
enough to shop you see that the people
who want everybody to vote think the
people are a bunch of idiots and the
government has to protect them from
everything I think they're smart enough
not to shop at a grocery store that's
overcharging right so you know you're a
consumer right you have choice there's a
free market and if one grocery store is
too expensive you won't shop there
you'll go to some place else right in
fact you got the internet now you can
shop around you can see where the prices
are the best so it's competition that is
going to make sure no one gets ripped
off when the government comes in
everybody gets ripped off every
everybody gets ripped off by the
government you know instead of kamla
Harris worried about
non-existent price gouging by the free
market she should worry about the actual
gouging that's being done by the
government on the people the people are
being gouged with inflation and taxes
and they have no way around it right the
government creates it in the free market
it's all voluntary nobody can exploit me
no one can gouge me because nobody owns
my business I can take my business
anywhere I want I'm gonna go to the
company that offers me the best deal the
highest quality the lowest price that's
where I'm going right and the market is
going to make sure but with the
government when they have power and they
have the guns I don't have a choice
right I have to pay their inflation tax
no matter what if they tax my income I
even if I get a lousy deal I can't opt
out right I I'm paying the tax I'm being
forced to pay that tax so the government
takes my money by force a grocery store
gets my money because I volunteered to
give it to them they didn't force me
they didn't come to my house with a gun
and forced me to shop at their store and
pay their prices they convinced me to
stop at their store because they had the
best prices or they had the the cleanest
aisles or the shortest line or whatever
it was that caused me to go to that
grocery store I went there voluntarily I
could have gone to any other store but I
chose the one that I went to I'm not
going to choose the one that's ripping
me off right nobody is that dumb but the
government somehow thinks we're all that
dumb and we're all going to make dumb
decisions unless they come in and
protect us yet we're all smart enough to
vote right we're we're too dumb to know
where to buy groceries but we know how
to pick the president see I I think it's
the opposite we're smart enough to know
how to buy groceries but everybody
shouldn't be picking the president if
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