Speaker 1: Welcome to another episode of the Chicks on the Right
podcast where we have our friend and sponsor of the show,
Zach Abraham from Bulwark Capital Management with us, and today
we got to talk about what Kamala has planned for
our country if she wins. Specifically this whole thing about
unrealized capital gains. So for people that who may be
new to that term, can you just give a very
brief explanation of what it is and why it sucks
monkey balls?
Speaker 2: So the unrealized capital gains thing is is not too
hard to understand. I think the best analogy, and I've
used this with our clients, is let's say we bought
a house, okay, today we're gonna go sell it seven
hundred thousand dollars okay, And we bought it let's say
in two thousand and four for two hundred and fifty grand.
Right now, there's other things that you have to look at.
There's depreciation that applies to how and there's other different things.
But let's just say, all in all your costs when
you purchased it and the updates you've done, you've got
two hundred and fifty grand into the house. You're going
to sell it for seven So that means that you
have four hundred and fifty thousand dollars of unrealized cab gains. Okay,
so when you sell your house for seven hundred grand,
the good news is you don't have to pay taxes
on all that seven hundred grand because some of it's
your cost. You're paying it on that four hundred and
fifty thousand dollars of cap gains. Well, what this law
would do is pretty much at any point, I don't
even know how the execution of it would play out.
But what the law would do is it allowed the
government to tell you, well, now we think that you
owe us money on that unrealized cab gain. Okay, Well
what if you don't want to sell your house and
what if this and they're like, oh, it's only going
to apply to rich people, Well, there's a lot of
farmers out there that have, you know, over one hundred
million dollars worth of land. It might only make, you know,
when it's all said and done, you know, maybe they're
making you know, two hundred thousand, three hundred thousand dollars
a year if you want to hit him on an
unrealized cab gain on that farm. That's been in their family,
in their family for one hundred years. What are they
going to do to pay that? And and so nobody
thinks about that. But here's the real pernicious part of that.
And I and I and I feel like I feel
like the best way to look at this is through land.
Now this would apply to stocks as well. And here's
the here's the part about it that is the scary part,
you know, And this is always the way, this is
just this is always the way that the camel gets
his nose under the tent. Let's think about property taxes
or property right.
Speaker 3: So that's what I'm concerned about. I was going to
ask you about that.
Speaker 2: Yeah, so I'm land right, So the government already has
the ability to charge you rent on that land into perpetuity. Right,
it's called profit. Okay. If the government has a riskless
right to rent into perpetuity on the land, and the
government can also trigger when you have to realize the
profit on that land, therefore paying taxes on it, it
really calls into question legally who owns the land yep? Right,
because you especially if it's just land that you're holding, whatever,
you don't get guaranteed rent income on that land. Every
you're the government, right, you don't decide when you sell
that land and realize the profit the government does.
Speaker 3: Okay, But here's here's a question though, So like say
they because I know a lot of ranchers around here
that it's kind of like the same situation that you're
talking about with the farming. It's very similar where they
don't make a lot of money. These are not rich people.
These are people who work like three jobs, but they
have a crap ton of land and they're sitting on
it because that's that's what they do. And they and
they sit on it because they love the land and
they have livestock on it, and they have they have
crops on it, and they do good with the land.
They're not just sitting on it because they're like business
developers who are just sitting on land to like put
development on it. Anyways, my point is is that say
they bought that land, like say they had a just
one plot of land, they bought it for like one
hundred grand, and now the I don't know, just we
feel like it's worth a million now, like because it's
been sitting there for twenty years or whatever is can
they tax them on that because we feel like it's
worth more. Is am I understanding that correctly?
Speaker 2: Yeah? I'd also be really interested to see under their
plan what mar a Lago is now worth, because I
guarantee it's worth more than eighteen million now right.
Speaker 3: Oh my god, that's such a great point.
Speaker 2: Like all of a sudden, we'd be like, well, mister Trump,
you always worth eight hundred million dollars.
Speaker 1: Right, Oh gosh, it's brilliant.
Speaker 2: Yeah, but this is but this is the whole issue
with it. I am far less concerned people are, Oh,
you're not worth a hundred million dollars? Who cares? Well?
You got to step back and take a look at
the fact that we live under a legal system that
is based in precedent. Okay, so if you pass a
law that compels people when the government orders them to
realize the gains on an asset that's long been held
on something like that, it somehow legally is changing the
definition of ownership. Right, that will trickle down to the
rest of us. You can bet your bottom dollar it will, right, Yeah, Because.
Speaker 1: How are they how are they even figuring out like
how when they say one hundred million in net worth
right now, which is their cutoff. So that's why there's
all these democrats going you don't have to worry about
it because you don't have any But like, how are
they even calculating net worth?
Speaker 3: And how is this going.
Speaker 1: To prevent them from taxing into oblivion capital gains on
your investment portfolios?
Speaker 2: Right? Oh no, yeah, no, no, And that's where it's headed.
And look, there is something. I don't think that there
is anything more pernicious than and such class warfare and
so divisive to sit there and say, well, you're not
worth one hundred million, you don't have anything to worry about. Listen,
when government is impeding on the rights of private citizens,
I don't care what their net worth is. Exactly the
problem with that, because you are creating precedent, right, you
are literally legally changing the definition of what the ownership
of an asset is. We always have to bend ourselves
to like again again with landholdings, to the government's supposed
right to income for perpetuity, right into perpetuity, and then
they control when we realize the gain how much tax
we pay. Like I said that that is substantively changing
the definition of the ownership of private assets, right, And
that's what I have a problem with. I don't care.
I know. The way you're going to get that camel's
nose under the tent is by telling you I, we're
only going after the rich people, right, this is but
you're changing the definition, and that's going to get used
against me.
Speaker 3: It's like we fought a revolution over a t tax, right,
and then we're having this conversation like how many ways
can I bet over and be tax?
Speaker 2: What you described is the working the you know, the
families that's owned owned the asset for a long time,
the farm. You know, people that are cash poor, asset rich.
These are the these are the only people that are
going to pay the tax. Yeah, with a couple hundred
million and you made it all working in a tech company.
G's what you're gonna do. You see this legislation, legislation
hit DC. You're gonna open a Bahamian you know, registered LLC.
You're gonna move the assets offshore and you're never gonna
pay the tax. But if you own a farm that's
been handed down through generations, you got no choice, right,
so fring Yeah, so A it isn't going to raise
a meaningful amount of revenue at all because it's too
easy to sidestep it, okay, and then b the only
people that are gonna end up paying it are the
people that you're not targeting supposedly, right, So it's just it.
It's a farce, and it will end up being paid
by middle class working people because, like I said, it
will change the death initiative ownership legally. And if you
don't think they're going to try to extrapolate that down
the wealth curve coming for the rest of us, you're
out of your mind. And have them been paying attention
for the last hundred years, right, or the last thousands
of years, just the way government works. But no, it's
it's it's completely ridiculous. It is a grab of private assets.
This will do nothing to balance the budget, it won't
even make it. Then in death, they don't even care.
Speaker 1: About balancing the budget. They just want more of our money.
Speaker 2: They want all they want.
Speaker 3: They want more control, they want more control over everything.
And now it's like they want to take it. Just
disgusts me because I do I am a rural person
and said they I look at some of these already
family owned ranches and farms and they're already getting screwed.
And it's like this is this is all they've got
to hand it down to their children. It's like you
want to take that too, scowl.
Speaker 2: Yeah, well, you know, I think about like this getting
applied to my business. Right, you could use industry standards
and you could come up with a pretty big valuation
for Bulwark. Right, it's a successful business. The valuation, first
of all, I would never sell it, but the valuation
of Bulwark if I was to sell it, it's a
fairly large number. But I'm anywhere near that type of
cash on hand. So basically they could compel me to
have to give up my business.
Speaker 1: Yeah, right, so in order to pay the tax bill,
which is freaking crazy.
Speaker 2: It is.
Speaker 3: It's yeah, and it's and it's that's fascism or.
Speaker 2: Or check it out. They're good buddies at Goldman Sachs
and Blackrock will come up with capital gains financing packages
for you.
Speaker 1: Oh my god, you don't.
Speaker 2: Have to sell your asset. And your good buddies at
Blackrock who paid how many millions of dollars into your campaign?
Now they got a whole nother lending business that didn't
exist before. It's it, guys, it's corrupt down to the
core if you and I guarantee you that will happen.
I guarantee you. The black rocks of the world are
telling them this is a good idea, right because.
Speaker 3: It's selected, if she's elected.
Speaker 2: If she's selected, we just have to.
Speaker 1: Hope that we outnumber the dumbasses.
Speaker 2: We have to just well, and you're at a point
too where people are like, look, I don't think about
you know, I don't like Donald Trump, and I go, stop, guys,
it doesn't matter, Okay, if if the other side is
running a bull mast if you got to vote for him, right,
like this is this is going to do no good
for anybody. And when you think about changes like she's
proposing and that she's talking about, these are things that
aren't easily undone. This could be kind of death nail.
And I don't want to be too hyperbolic, right, No,
you're going down the path of socialism, well totally.
Speaker 3: I mean yeah, it's like this, she talks about seizing patents.
I mean, there's all sorts of things that she's talked
about that are absolutely socialists. But people are like, well,
I mean she's a woman and she's so joyful.
Speaker 2: Right, woman, and she's got a master's degree. I mean,
run her for president for God's sake. Criteria right for
her are part black for too, Zach vote. Yeah, she's
even got three biological kids that are part black. I mean, shoot,
you know that's like a racial revolution, baby.
Speaker 1: You go yeah, crazy, you exactly for explaining it all
and raising some really important points that I'm absolutely sure
a lot of people haven't even considered. So we appreciate it.
How we do listen to more of your pearls of wisdom,
great info?
Speaker 2: Yeah, well them for you guys, So right, I don't
thank you, Zach No, yeah, No. Easiest way to get
just you can google Know your Risk Radio podcasts. We
do our daily show, the Daily Dots, where we cover
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and economics. It's all on our podcast no paywall. Do
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you get all that Know your Risk radio dot com
Boardcapital Management dot com. We're not too hard to find.
Speaker 1: Check it out, everybody.
Speaker 2: Thanks thanks for having me. Investment advisory services offered through
Track Financial loc and SEC Registered investment advisor. The opinions
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are not intended to provide specific advice or recommendations for
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