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Speaker 1: Welcome to another episode of the Chicks on the Right

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podcast where we have our friend and sponsor of the show,

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Zach Abraham from Bulwark Capital Management with us, and today

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we got to talk about what Kamala has planned for

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our country if she wins. Specifically this whole thing about

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unrealized capital gains. So for people that who may be

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new to that term, can you just give a very

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brief explanation of what it is and why it sucks

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monkey balls?

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Speaker 2: So the unrealized capital gains thing is is not too

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hard to understand. I think the best analogy, and I've

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used this with our clients, is let's say we bought

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a house, okay, today we're gonna go sell it seven

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hundred thousand dollars okay, And we bought it let's say

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in two thousand and four for two hundred and fifty grand.

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Right now, there's other things that you have to look at.

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There's depreciation that applies to how and there's other different things.

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But let's just say, all in all your costs when

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you purchased it and the updates you've done, you've got

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two hundred and fifty grand into the house. You're going

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to sell it for seven So that means that you

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have four hundred and fifty thousand dollars of unrealized cab gains. Okay,

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so when you sell your house for seven hundred grand,

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the good news is you don't have to pay taxes

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on all that seven hundred grand because some of it's

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your cost. You're paying it on that four hundred and

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fifty thousand dollars of cap gains. Well, what this law

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would do is pretty much at any point, I don't

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even know how the execution of it would play out.

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But what the law would do is it allowed the

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government to tell you, well, now we think that you

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owe us money on that unrealized cab gain. Okay, Well

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what if you don't want to sell your house and

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what if this and they're like, oh, it's only going

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to apply to rich people, Well, there's a lot of

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farmers out there that have, you know, over one hundred

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million dollars worth of land. It might only make, you know,

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when it's all said and done, you know, maybe they're

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making you know, two hundred thousand, three hundred thousand dollars

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a year if you want to hit him on an

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unrealized cab gain on that farm. That's been in their family,

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in their family for one hundred years. What are they

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going to do to pay that? And and so nobody

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thinks about that. But here's the real pernicious part of that.

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And I and I and I feel like I feel

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like the best way to look at this is through land.

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Now this would apply to stocks as well. And here's

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the here's the part about it that is the scary part,

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you know, And this is always the way, this is

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just this is always the way that the camel gets

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his nose under the tent. Let's think about property taxes

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or property right.

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Speaker 3: So that's what I'm concerned about. I was going to

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ask you about that.

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Speaker 2: Yeah, so I'm land right, So the government already has

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the ability to charge you rent on that land into perpetuity. Right,

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it's called profit. Okay. If the government has a riskless

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right to rent into perpetuity on the land, and the

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government can also trigger when you have to realize the

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profit on that land, therefore paying taxes on it, it

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really calls into question legally who owns the land yep? Right,

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because you especially if it's just land that you're holding, whatever,

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you don't get guaranteed rent income on that land. Every

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you're the government, right, you don't decide when you sell

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that land and realize the profit the government does.

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Speaker 3: Okay, But here's here's a question though, So like say

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they because I know a lot of ranchers around here

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that it's kind of like the same situation that you're

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talking about with the farming. It's very similar where they

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don't make a lot of money. These are not rich people.

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These are people who work like three jobs, but they

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have a crap ton of land and they're sitting on

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it because that's that's what they do. And they and

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they sit on it because they love the land and

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they have livestock on it, and they have they have

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crops on it, and they do good with the land.

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They're not just sitting on it because they're like business

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developers who are just sitting on land to like put

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development on it. Anyways, my point is is that say

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they bought that land, like say they had a just

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one plot of land, they bought it for like one

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hundred grand, and now the I don't know, just we

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feel like it's worth a million now, like because it's

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been sitting there for twenty years or whatever is can

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they tax them on that because we feel like it's

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worth more. Is am I understanding that correctly?

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Speaker 2: Yeah? I'd also be really interested to see under their

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plan what mar a Lago is now worth, because I

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guarantee it's worth more than eighteen million now right.

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Speaker 3: Oh my god, that's such a great point.

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Speaker 2: Like all of a sudden, we'd be like, well, mister Trump,

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you always worth eight hundred million dollars.

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Speaker 1: Right, Oh gosh, it's brilliant.

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Speaker 2: Yeah, but this is but this is the whole issue

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with it. I am far less concerned people are, Oh,

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you're not worth a hundred million dollars? Who cares? Well?

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You got to step back and take a look at

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the fact that we live under a legal system that

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is based in precedent. Okay, so if you pass a

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law that compels people when the government orders them to

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realize the gains on an asset that's long been held

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on something like that, it somehow legally is changing the

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definition of ownership. Right, that will trickle down to the

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rest of us. You can bet your bottom dollar it will, right, Yeah, Because.

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Speaker 1: How are they how are they even figuring out like

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how when they say one hundred million in net worth

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right now, which is their cutoff. So that's why there's

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all these democrats going you don't have to worry about

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it because you don't have any But like, how are

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they even calculating net worth?

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Speaker 3: And how is this going.

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Speaker 1: To prevent them from taxing into oblivion capital gains on

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your investment portfolios?

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Speaker 2: Right? Oh no, yeah, no, no, And that's where it's headed.

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And look, there is something. I don't think that there

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is anything more pernicious than and such class warfare and

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so divisive to sit there and say, well, you're not

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worth one hundred million, you don't have anything to worry about. Listen,

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when government is impeding on the rights of private citizens,

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I don't care what their net worth is. Exactly the

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problem with that, because you are creating precedent, right, you

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are literally legally changing the definition of what the ownership

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of an asset is. We always have to bend ourselves

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to like again again with landholdings, to the government's supposed

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right to income for perpetuity, right into perpetuity, and then

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they control when we realize the gain how much tax

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we pay. Like I said that that is substantively changing

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the definition of the ownership of private assets, right, And

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that's what I have a problem with. I don't care.

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I know. The way you're going to get that camel's

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nose under the tent is by telling you I, we're

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only going after the rich people, right, this is but

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you're changing the definition, and that's going to get used

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against me.

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Speaker 3: It's like we fought a revolution over a t tax, right,

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and then we're having this conversation like how many ways

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can I bet over and be tax?

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Speaker 2: What you described is the working the you know, the

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families that's owned owned the asset for a long time,

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the farm. You know, people that are cash poor, asset rich.

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These are the these are the only people that are

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going to pay the tax. Yeah, with a couple hundred

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million and you made it all working in a tech company.

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G's what you're gonna do. You see this legislation, legislation

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hit DC. You're gonna open a Bahamian you know, registered LLC.

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You're gonna move the assets offshore and you're never gonna

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pay the tax. But if you own a farm that's

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been handed down through generations, you got no choice, right,

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so fring Yeah, so A it isn't going to raise

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a meaningful amount of revenue at all because it's too

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easy to sidestep it, okay, and then b the only

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people that are gonna end up paying it are the

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people that you're not targeting supposedly, right, So it's just it.

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It's a farce, and it will end up being paid

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by middle class working people because, like I said, it

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will change the death initiative ownership legally. And if you

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don't think they're going to try to extrapolate that down

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the wealth curve coming for the rest of us, you're

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out of your mind. And have them been paying attention

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for the last hundred years, right, or the last thousands

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of years, just the way government works. But no, it's

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it's it's completely ridiculous. It is a grab of private assets.

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This will do nothing to balance the budget, it won't

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even make it. Then in death, they don't even care.

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Speaker 1: About balancing the budget. They just want more of our money.

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Speaker 2: They want all they want.

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Speaker 3: They want more control, they want more control over everything.

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And now it's like they want to take it. Just

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disgusts me because I do I am a rural person

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and said they I look at some of these already

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family owned ranches and farms and they're already getting screwed.

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And it's like this is this is all they've got

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to hand it down to their children. It's like you

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want to take that too, scowl.

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Speaker 2: Yeah, well, you know, I think about like this getting

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applied to my business. Right, you could use industry standards

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and you could come up with a pretty big valuation

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for Bulwark. Right, it's a successful business. The valuation, first

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of all, I would never sell it, but the valuation

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of Bulwark if I was to sell it, it's a

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fairly large number. But I'm anywhere near that type of

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cash on hand. So basically they could compel me to

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have to give up my business.

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Speaker 1: Yeah, right, so in order to pay the tax bill,

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which is freaking crazy.

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Speaker 2: It is.

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Speaker 3: It's yeah, and it's and it's that's fascism or.

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Speaker 2: Or check it out. They're good buddies at Goldman Sachs

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and Blackrock will come up with capital gains financing packages

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for you.

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Speaker 1: Oh my god, you don't.

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Speaker 2: Have to sell your asset. And your good buddies at

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Blackrock who paid how many millions of dollars into your campaign?

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Now they got a whole nother lending business that didn't

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exist before. It's it, guys, it's corrupt down to the

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core if you and I guarantee you that will happen.

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I guarantee you. The black rocks of the world are

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telling them this is a good idea, right because.

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Speaker 3: It's selected, if she's elected.

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Speaker 2: If she's selected, we just have to.

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Speaker 1: Hope that we outnumber the dumbasses.

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Speaker 2: We have to just well, and you're at a point

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too where people are like, look, I don't think about

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you know, I don't like Donald Trump, and I go, stop, guys,

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it doesn't matter, Okay, if if the other side is

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running a bull mast if you got to vote for him, right,

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like this is this is going to do no good

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for anybody. And when you think about changes like she's

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proposing and that she's talking about, these are things that

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aren't easily undone. This could be kind of death nail.

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And I don't want to be too hyperbolic, right, No,

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you're going down the path of socialism, well totally.

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Speaker 3: I mean yeah, it's like this, she talks about seizing patents.

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I mean, there's all sorts of things that she's talked

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about that are absolutely socialists. But people are like, well,

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I mean she's a woman and she's so joyful.

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Speaker 2: Right, woman, and she's got a master's degree. I mean,

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run her for president for God's sake. Criteria right for

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her are part black for too, Zach vote. Yeah, she's

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even got three biological kids that are part black. I mean, shoot,

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you know that's like a racial revolution, baby.

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Speaker 1: You go yeah, crazy, you exactly for explaining it all

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and raising some really important points that I'm absolutely sure

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a lot of people haven't even considered. So we appreciate it.

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How we do listen to more of your pearls of wisdom,

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great info?

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Speaker 2: Yeah, well them for you guys, So right, I don't

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thank you, Zach No, yeah, No. Easiest way to get

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just you can google Know your Risk Radio podcasts. We

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do our daily show, the Daily Dots, where we cover

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everything of significance that's going on in the world of

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finance and economics and politics as it relates to finance

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and economics. It's all on our podcast no paywall. Do

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interviews with special guests every once in a while, so

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you get all that Know your Risk radio dot com

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Boardcapital Management dot com. We're not too hard to find.

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Speaker 1: Check it out, everybody.

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Speaker 2: Thanks thanks for having me. Investment advisory services offered through

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Track Financial loc and SEC Registered investment advisor. The opinions

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expressed in this programer for general informational purposes only, and

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are not intended to provide specific advice or recommendations for

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any individual or on any specific security. Any references to

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performance of security so are thought to be materially accurate,

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and actual performance may different. Investments involved risk and are

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not guaranteed. Past performance doesn't guarantee future results. TRAK twenty

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four years ago with