Posted Jun 25, 2024 By Martin Armstrong
The government believes it has unlimited power to tax the citizens of the United States. The idea of capital gains taxes on unrealized earnings will be an economic nuclear disaster. The Democrat-appointed Supreme Justices believe that Moore v. United States does not exceed Congress’s Constitutional authority to tax unrealized gains. America’s entire future is on the line.
On June 20, 2024, the US Supreme Court voted 7-2 to uphold federal taxes on foreign income. There will be a one-time tax on shares of undistributed profits, and they anticipate the move will earn the Fed $340 billion. Only Justices Gorsuch and Thomas argued that Moore v. United States is unconstitutional and must be abolished. Kavanaugh stated that this ruling need not be interpreted at the court authorizing taxation on unrealized income. Yet it is a major step in that direction.
Biden’s appointee to the bench, Justice Ketanji Brown Jackson, supports capital gains taxation. This is the first time a Justice has spoken directly on the topic in favor of the practice. She argued that the income need not be realized before it can be taxed. She feels it is not a Constitutional right but rather a principle founded on equality. Jackson has extremely far-left views regarding wealth in America that are outright racist. While Sotomayor stated race must not be factored in when analyzing the Constitution, Jackson wrote a separate piece last June “to expound upon the universal benefits of considering race in this context.” But this isn’t about race for the Biden Administration. He appointed Jackson to have a socialist voice on the bench to promote “equality,” which ultimately amounts to everyone having nothing – you will own nothing and be happy.
The far left is stumped by Justice Clarence Thomas, who upholds the Constitution in favor of its original intentions. You never hear Thomas speak of his race when discussing a ruling as it simply DOES NOT MATTER — we are all protected under one nation, indivisible. He called affirmative action “rudderless, race-based preferences designed to ensure a particular racial mix in their entering classes.” He believes “all men are created equal, are equal citizens, and must be treated equally before the law” and rejects the notion that one should feel victimized based on race. Racial politics is merely a method to divide the people. It certainly has no place in America’s top court.
President Biden has proposed a 25% tax on income and unrealized gains for the wealthiest Americans earning over $100 million. This opens the door to creating a third income tax. They always begin by taxing the wealthiest, but sooner than later, it will pass on to everyone. The proposal also suggests taxing estates of over $5 million on unrealized capital gains in the event of a death to prevent generational wealth.
Eisner v. Macomber stated that unrealized gains were NOT income during the ratification of the Sixteenth Amendment. This would punish anyone from owning an appreciating asset, even homeownership would be a taxable penalty if unrealized gains were grabbed by the government. Taxes are never repealed. The government will continue to tax the people into poverty if permitted to do so, and that is precisely how empires fall. The government is utterly desperate for funding and believes shaking down Americans is a better solution than curtailing its own spending.
Centinel2012 