Morgan Stanley Discloses BlackRock Bitcoin ETF Holdings | Britcoiners by CoinCorner #138

Transcript

Kamala Harris, who's running for president in the US, has said if she gets into power, she is going to create some new tax brackets and new tax rules. One of them is capital gains tax itself going up from 20 to 40%, or 44%, for US citizens. And, um, I'm not sure in what brackets though as well. There are certain criteria that are always missed off the headlines. The big one was the capital gains tax on unrealised gains, which means if you, for example, had a gain of a whole Bitcoin, say a million pounds worth of Bitcoin, or a million dollars, sorry, to keep it simple, and in a year's time it's gone up to $2 million because the price has doubled, but you don't sell, you still have to pay potentially 20 to 40%, whatever it ends up being, in tax on that million dollar gain. So, you'd end up having to pay $400,000 without having sold your Bitcoin.

She did state it was targeted at the top 5% of wealthy individuals. It's £100 million, does it make it right? It's £100 million. Which is big. So she's aimed at the wealthy. Now, from the smaller guy's side and everyone worth less than £100 million, which is the majority of the country, it doesn't bother them. They don't care, which in theory sounds like a good thing. Now you're about to screw over the wealthiest people in your country that run and control all of the big companies in your country, and do you believe for a minute any of them are going to actually stick around for something like that? The first thing they're going to do is say, how do we get around this?

Well, the people backing her might be slightly reluctant because they're all, normally, all the wealthy guys are running, but not even staying around. Right. In order to pay these taxes, they might have to dump shares in public companies, which then dump the stock markets. Could be screwed if that comes. Absolutely screwed. And also, one thing to worry about is, and this is what happens in the UK, £100 million now sounds like loads, but it creeps and creeps to the point where actually £100 million becomes accessible, and what they do is they never raise that. So inflation, you end up catching it up. It happened in the UK with all our capital gain thresholds. Initially, they never raised them, so you just like your personal doesn't go up. They bring them down.

So once it's in there, it's in there, and then it'll capture more and more people. If you go back 10, 20 years, how many people that would have captured versus now, that's a big difference. At this point now, we like times like loads, but then eventually, even it might be the next generation, they'll be used to it. Unrealised tax will be ingrained in them, and it'll just be part of the course, and then people will have to look back and say it's absolutely crazy, but I think it will crash the stock market on the US side massively. I think that'll be such an impact. You've got to think because that unrealised capital gains is not just on individuals, it's on companies as far as I'm aware as well. So any company holding anything is basically going to be scrutinised for this every year.