Janet Yellen, US secretary of the treasury, has declared outright war on the middle classes by proposing an “unrealised capital gains tax”. The proposal comes under the guise of taxing the less than 1% of extremely wealthy billionaires, but it would also have devastating consequences for the crypto-holding middle and lower classes.
Yellen broached the idea on Sunday in her State of the Union discussion on CNN. She was asked how the new stimulus bill would be paid for. She replied that it “should be relatively straightforward to raise the revenue necessary to pay for this bill.”
The treasury secretary steered away from admitting that her proposal was a “wealth tax”, and instead said that it would only hit the “liquid assets held by extremely wealthy individuals… billionaires.”
She said that the tax would get at the capital gains that were an extremely large part of the “incomes of wealthy individuals.”
She did not mention how on earth unrealised gains had suddenly become ‘income’. By definition, capital gains are not income, and for Yellen to say this is very disingenuous.
Speaker of the House of Representatives, Nancy Pelosi, said that this tax would only probably generate from $200 to $250 billion in revenue over the next 10 years. It might then be asked, if it is such a small part of the $2 trillion spending, then why even bother?
The whole thing appears to be a propagandistic plan to make the population think that the treasury is trying to stick up for the lower earners – it’s quite the opposite.
For anybody who holds crypto it will entail having to sell a part of your holdings every year and not be able to benefit from the rises in value. Imagine if crypto enters a bear market – you will have to sell your holdings and not make any gains either.
Even when we don’t take crypto holders into account, you can also imagine how the stock market would tank as investors sold their holdings.
Forcing you to sell your assets is the act of a totalitarian regime. It all seems to coincide with the money printing that has allowed the government and the very big institutions to buy up all the assets, completely pricing the small person out of the market.
Crypto is the one asset that is completely out of the existing monetary system. Some might argue that gold and silver are also, but heavy manipulation by certain banks has artificially kept their price against the dollar low. Although granted that trying to price them against such things as fiat currencies is incredibly unreliable.
You take crypto away from people, what is left? Central bank digital currencies that will enable complete and total control? We need to stop humouring regulators and law-makers, and stand up for rights and liberty. But who will do so?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.