Jack Mayo If you are a successful entrepreneur, small business owner or high end person who has amassed wealth through your innovation, hard work and smart investment, the government is coming for you.
The Biden administration last week proposed a major tax reform called the “Billionaire Minimum Income Tax.” Implementing this aggressive proposal would cause a huge tax blow to America’s high-net wealth families, and it would not only hurt billionaires.
When you look at the details of this new tax championed by the progressives – it turns out that most of the people affected are multi-millionaires. This remarkable tax proposal seeks to redefine “wealth” and “income” and ultimately a new type of tax on the rich.
Such new tax proposals offer a reminder to all Americans that there are prudent and personal ways to protect your assets by investing in real assets such as rare coins and bullions. These personal precious metal assets can be stored safely in your home, in a bank security deposit box or even outside our borders at a facility like Canada’s International Depository Services (IDS), a precious metal deposit in Toronto. The assets are stored here in an international personal custody account, which is out of the depository balance sheet and out of reach of the US government. However, we will discuss this later …
First … how this new wealth tax will work.
The 20% minimum tax rate will apply to both your general income And The value of your assets increased last year.
This is a completely new tax structure That’s your unrealistic capital gain.
In today’s tax code, you are not taxed until the assets are sold and you realize that income. If the value of the property increases you will not pay taxes! This new tax proposal expands the real definition of wealth – and calls your income an “unrealistic profit.”
Under the new tax scheme, taxpayers are required to report their assets to the IRS annually. The assets you own will be valued at their market value and that is the amount you have to pay tax.
It’s not just a stock portfolio, the offer will include assets including your business and real estate holdings. The market value of these non-commercial assets will be calculated by the “conservative floating annual return” calculated by the five-year Treasury rate plus 2 percentage points.
What about losses in future years? In the present proposal it is not clear whether the loss will offset the annual profit in future years.
Here is an example of what this might mean. Perhaps a high-net worth person would have to pay $ 2 million in taxes on an unrealistic profit of $ 10 million in 2022. But, then if assets fall by $ 10 million in 2023, you’re out of luck. The government has to accept them. You have paid taxes on an unrealistic profit, which has now disappeared in thin air.
For now, the proposed tax would only apply to families with assets of 100 million or more.
Beware, these new taxes always start to apply for a few and then spread widely to affect more and more Americans in other bonds of wealth or income.
The proposed wealth tax has been raised as a new revenue stream that will bring in about $ 360 billion over 10 years.
Gold is an excellent vehicle for personal preservation of wealth.
The tide of taxes is flowing and the government is looking for more ways to tax rich Americans. If these proposals become law, it is important to understand how this will affect you and why it would be effective to increase your allocation to gold and rare coins right now before the tax plan is passed.
Fortunately, there is time to diversify your assets to get ahead of these proposed tax changes to protect your assets.
Gold bullion and rare coins have long been regarded by trust attorneys as an efficient and prudent method of transferring wealth from one generation to another. These tax proposals will significantly reduce the wealth your heirs can afford – because the government will take a huge chunk of your and your family’s money through this unrealistic capital gains tax.
If you or your family can be affected by the proposed changes to the tax law, don’t wait. Contact a Blanchard Portfolio Manager for a confidential portfolio review – and learn strategies to protect and preserve your assets. Read more about saving your real assets here.
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