<description>&lt;p&gt;In this episode, Brian Skrobonja breaks down Kamala Harris' proposed tax plan and how it aims to tax unrealized capital gains for the ultra-rich.&lt;/p&gt; &lt;p&gt;He sheds light on how the tax plans will affect all Americans regardless of their income level, what to do if Kamala Harris is elected president, and how taxing unrealized gains could contribute to constant market volatility.&lt;/p&gt; &lt;ul&gt; &lt;li&gt;Brian starts the conversation by breaking down the key elements in Kamala Harris' plan to tax unrealized capital gains for ultra-high-net-worth individuals.&lt;/li&gt; &lt;li&gt;While proponents argue this would ensure the wealthiest Americans pay their fair share, Brian believes the potential implications warrant careful consideration.&lt;/li&gt; &lt;li&gt;Brian breaks down the key aspects of Kamala’s proposal and how it could impact investors, businesses, and the overall financial landscape.&lt;/li&gt; &lt;li&gt;According to a 2020 study, 93% of stock market wealth is held by the top 10% of households. If these individuals face a huge tax bill, they will likely find ways to move out of the market and into more tax-friendly investments.&lt;/li&gt; &lt;li&gt;Brian explains why money flowing out of the stock market is bad news for all types of investors.&lt;/li&gt; &lt;li&gt;Brian reveals how taxing unrealized capital gains for the ultra-rich not only affects the super rich, but would impact every household in America.&lt;/li&gt; &lt;li&gt;By taxing unrealized capital gains annually, the proposal aims to generate additional federal revenue for social programs and debt deficit reductions.&lt;/li&gt; &lt;li&gt;For Brian, one of the most immediate concerns surrounding this proposal is its potential to significantly increase market volatility.&lt;/li&gt; &lt;li&gt;The stock market is highly sensitive to changes in tax policy. Introducing a new tax on unrealized gains could create a new layer of uncertainty for investors.&lt;/li&gt; &lt;li&gt;Another significant concern is how this tax could impact long-term investment strategies.&lt;/li&gt; &lt;li&gt;According to Brian, the prospect of being taxed on paper gains before those gains are realized could discourage investors from holding on to appreciated assets for extended periods of time.&lt;/li&gt; &lt;li&gt;Brian talks about the potential for capital flight and how wealthy individuals may choose to move their assets to more tax-friendly jurisdictions.&lt;/li&gt; &lt;li&gt;The other issue with Harris' plan is learning the values of every asset.&lt;/li&gt; &lt;li&gt;Brian explains how determining the fair market value of a non-publicly traded asset is a complex and potentially contentious process that could lead to frequent disputes between taxpayers and the IRS.&lt;/li&gt; &lt;li&gt;Brian explains how taxing unrealized capital gains could potentially stifle entrepreneurship, innovation, and funding for small businesses.&lt;/li&gt; &lt;li&gt;Another potential consequence of this proposal is the risk of a significant market correction.&lt;/li&gt; &lt;li&gt;As investors reevaluate their portfolios in light of the new tax regime, there's a case to be made about a broad sell-off, particularly in sectors with a high concentration of unrealized gains.&lt;/li&gt; &lt;li&gt;While the full impact of taxing unrealized gains remains to be seen, it's clear that such a policy shift could have far-reaching implications for investors, businesses, and the economy as a whole, not just for the ultra-wealthy.&lt;/li&gt; &lt;li&gt;If Harris wins the White House, we could see investors taking their capital gains before the year ends instead of waiting to see what happens next.&lt;/li&gt; &lt;li&gt;By working with an experienced team of professionals, you can stay informed and by focusing on your long-term financial goals, you can prepare for whatever changes come your way.&lt;/li&gt; &lt;/ul&gt; &lt;p&gt; &lt;/p&gt; &lt;p&gt; &lt;/p&gt; &lt;p&gt;Mentioned in this episode:&lt;/p&gt; &lt;p&gt;&lt;a href="https://brianskrobonja.com/" target="_blank" rel= "noopener"&gt;BrianSkrobonja.com&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href="http://www.skrobonjafinancial.com" target="_blank" rel= "noopener"&gt;SkrobonjaFinancial.com&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href="http://www.skrobonjawealth.com" target="_blank" rel= "noopener"&gt;SkrobonjaWealth.com&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href="https://buildbanking.com" target="_blank" rel= "noopener"&gt;BUILDbanking.com&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Common Sense Financial Podcast on &lt;a href= "https://www.youtube.com/@commonsensefinancial1603" target="_blank" rel="noopener"&gt;YouTube&lt;/a&gt; &lt;/p&gt; &lt;p&gt;Common Sense Financial Podcast on &lt;a href= "https://open.spotify.com/show/2KfKK4bSOB2RMhC8kouozS?si=1df1de5d54864b00" target="_blank" rel="noopener"&gt;Spotify&lt;/a&gt;&lt;/p&gt; &lt;p&gt; &lt;/p&gt; &lt;p&gt;References for this episode:&lt;/p&gt; &lt;p&gt;&lt;a href= "https://www.asianinvestor.net/article/market-views-top-3-assets-likely-to-gain-if-harris-wins/498292" target="_blank" rel= "noopener"&gt;https://www.asianinvestor.net/article/market-views-top-3-assets-likely-to-gain-if-harris-wins/498292&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href= "https://www.nbcnews.com/business/taxes/harris-plans-tax-unrealized-stock-gains-only-people-100-million-rcna168819" target="_blank" rel= "noopener"&gt;https://www.nbcnews.com/business/taxes/harris-plans-tax-unrealized-stock-gains-only-people-100-million-rcna168819&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href= "https://www.cnn.com/2024/08/21/investing/kamala-harris-wall-street-relationship/index.html" target="_blank" rel= "noopener"&gt;https://www.cnn.com/2024/08/21/investing/kamala-harris-wall-street-relationship/index.html&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href= "https://www.kiplinger.com/investing/stocks/stocks-to-buy-for-a-harris-presidency" target="_blank" rel= "noopener"&gt;https://www.kiplinger.com/investing/stocks/stocks-to-buy-for-a-harris-presidency&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href= "https://www.investordaily.com.au/markets/55535-what-could-a-harris-presidency-mean-for-markets" target="_blank" rel= "noopener"&gt;https://www.investordaily.com.au/markets/55535-what-could-a-harris-presidency-mean-for-markets&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href= "https://moneyweek.com/economy/us-election/what-impact-could-kamala-harris-have-on-the-markets" target="_blank" rel= "noopener"&gt;https://moneyweek.com/economy/us-election/what-impact-could-kamala-harris-have-on-the-markets&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href= "https://www.aljazeera.com/economy/2024/9/11/investors-scramble-to-shift-positions-after-trump-harris-debate" target="_blank" rel= "noopener"&gt;https://www.aljazeera.com/economy/2024/9/11/investors-scramble-to-shift-positions-after-trump-harris-debate&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href= "https://www.cnbc.com/2024/09/04/harris-biden-capital-gains-tax-hike-trump-election.html" target="_blank" rel= "noopener"&gt;https://www.cnbc.com/2024/09/04/harris-biden-capital-gains-tax-hike-trump-election.html&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;a href= "https://www.axios.com/2024/01/10/wealthy-own-record-share-stock-market" target="_blank" rel= "noopener"&gt;https://www.axios.com/2024/01/10/wealthy-own-record-share-stock-market&lt;/a&gt;&lt;/p&gt; &lt;p&gt; &lt;/p&gt; &lt;p&gt;Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &amp;SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.&lt;/p&gt; &lt;p&gt;Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.&lt;/p&gt; &lt;p&gt;The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.&lt;/p&gt; &lt;p&gt;This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.  Actual future results and trends may differ materially from what is forecast.&lt;/p&gt; &lt;p&gt;Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.&lt;/p&gt; &lt;p&gt;Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.  This show is intended for informational purposes only.  It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.&lt;/p&gt; &lt;p&gt;This content is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.&lt;/p&gt; &lt;p&gt;Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC are not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firms are not affiliated with or endorsed by the U.S. Government or any governmental agency.&lt;/p&gt; &lt;p&gt;The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC.&lt;/p&gt;</description>

Common Sense Financial Podcast

Brian Skrobonja

The Potential Ripple Effects of Taxing Unrealized Capital Gains

OCT 23, 202418 MIN
Common Sense Financial Podcast

The Potential Ripple Effects of Taxing Unrealized Capital Gains

OCT 23, 202418 MIN

Description

In this episode, Brian Skrobonja breaks down Kamala Harris' proposed tax plan and how it aims to tax unrealized capital gains for the ultra-rich.

He sheds light on how the tax plans will affect all Americans regardless of their income level, what to do if Kamala Harris is elected president, and how taxing unrealized gains could contribute to constant market volatility.

  • Brian starts the conversation by breaking down the key elements in Kamala Harris' plan to tax unrealized capital gains for ultra-high-net-worth individuals.
  • While proponents argue this would ensure the wealthiest Americans pay their fair share, Brian believes the potential implications warrant careful consideration.
  • Brian breaks down the key aspects of Kamala’s proposal and how it could impact investors, businesses, and the overall financial landscape.
  • According to a 2020 study, 93% of stock market wealth is held by the top 10% of households. If these individuals face a huge tax bill, they will likely find ways to move out of the market and into more tax-friendly investments.
  • Brian explains why money flowing out of the stock market is bad news for all types of investors.
  • Brian reveals how taxing unrealized capital gains for the ultra-rich not only affects the super rich, but would impact every household in America.
  • By taxing unrealized capital gains annually, the proposal aims to generate additional federal revenue for social programs and debt deficit reductions.
  • For Brian, one of the most immediate concerns surrounding this proposal is its potential to significantly increase market volatility.
  • The stock market is highly sensitive to changes in tax policy. Introducing a new tax on unrealized gains could create a new layer of uncertainty for investors.
  • Another significant concern is how this tax could impact long-term investment strategies.
  • According to Brian, the prospect of being taxed on paper gains before those gains are realized could discourage investors from holding on to appreciated assets for extended periods of time.
  • Brian talks about the potential for capital flight and how wealthy individuals may choose to move their assets to more tax-friendly jurisdictions.
  • The other issue with Harris' plan is learning the values of every asset.
  • Brian explains how determining the fair market value of a non-publicly traded asset is a complex and potentially contentious process that could lead to frequent disputes between taxpayers and the IRS.
  • Brian explains how taxing unrealized capital gains could potentially stifle entrepreneurship, innovation, and funding for small businesses.
  • Another potential consequence of this proposal is the risk of a significant market correction.
  • As investors reevaluate their portfolios in light of the new tax regime, there's a case to be made about a broad sell-off, particularly in sectors with a high concentration of unrealized gains.
  • While the full impact of taxing unrealized gains remains to be seen, it's clear that such a policy shift could have far-reaching implications for investors, businesses, and the economy as a whole, not just for the ultra-wealthy.
  • If Harris wins the White House, we could see investors taking their capital gains before the year ends instead of waiting to see what happens next.
  • By working with an experienced team of professionals, you can stay informed and by focusing on your long-term financial goals, you can prepare for whatever changes come your way.

 

 

Mentioned in this episode:

BrianSkrobonja.com

SkrobonjaFinancial.com

SkrobonjaWealth.com

BUILDbanking.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

 

References for this episode:

https://www.asianinvestor.net/article/market-views-top-3-assets-likely-to-gain-if-harris-wins/498292

https://www.nbcnews.com/business/taxes/harris-plans-tax-unrealized-stock-gains-only-people-100-million-rcna168819

https://www.cnn.com/2024/08/21/investing/kamala-harris-wall-street-relationship/index.html

https://www.kiplinger.com/investing/stocks/stocks-to-buy-for-a-harris-presidency

https://www.investordaily.com.au/markets/55535-what-could-a-harris-presidency-mean-for-markets

https://moneyweek.com/economy/us-election/what-impact-could-kamala-harris-have-on-the-markets

https://www.aljazeera.com/economy/2024/9/11/investors-scramble-to-shift-positions-after-trump-harris-debate

https://www.cnbc.com/2024/09/04/harris-biden-capital-gains-tax-hike-trump-election.html

https://www.axios.com/2024/01/10/wealthy-own-record-share-stock-market

 

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA &SIPC. Advisory services offered only by duly registered individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

Skrobonja Wealth Management, LLC is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training.

This material contains forward looking statements. Forward looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.  Actual future results and trends may differ materially from what is forecast.

Investing involves risk, including the potential loss of principal. It is not possible to invest in an index. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.  This show is intended for informational purposes only.  It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.

This content is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.

Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC are not permitted to offer and no statement made during this presentation shall constitute tax or legal advice. Our firms are not affiliated with or endorsed by the U.S. Government or any governmental agency.

The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Skrobonja Financial Group, LLC, Skrobonja Insurance Services, LLC, Skrobonja Wealth Management, LLC.