Biden’s Terrible Tax Plan


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Transcript

Mike:

If I’m not mistaken, there’ve been a couple of times when the government made a tax law change and they made it retroactive. Okay. And it created chaos both times.

Zach:

Welcome to Retirement Today. I’m your cohost, Zach Holcomb. And alongside me, we have Michael Reese. He’s a certified financial planner, founder of the prosperity planning system and president and CEO of Centennial advisors located right here in Austin, Texas. Mike, how are you this afternoon?

Mike:

Doing fantastic. I’m excited. You know what we’re talking about today, right?

Zach:

Your number one topic favorite?

Mike:

Yes. The topic that gets me red in the face and gets me all excited. That’s right. We’re talking about taxes. I mean, right now, Biden, he’s out there talking about how he wants to increase taxes. Only on the rich. Don’t forget that we’ve got our air quotes. What a bunch of hooey that is, but he wants to only I’m the rich of course, of course. What’s his definition of rich. Basically anybody makes over 80 grand, but they don’t want to say it that way. But the point is, we’re going to talk about taxes. We’re going to talk about what they are discussing in Washington, DC, how it’s going to affect you. And we have a very special event coming up like tomorrow night. We’re going to talk about as well, right?

Zach:

It’s a big event, big offer. Stick around because we’re going to tell you all about

Mike:

That’s going to be awesome. So let’s, let’s dive in. Okay. So here’s some things that I’ve heard about recently, and I think I’m going to start off with this one, Zach. So the other day president Biden came out and he says, we want to increase taxes, of course. Right? Cause he’s a tax and spend, I mean, let’s be honest. I mean, let’s call it what it is. He’s a tax and spend liberal, right? That’s what he is. I want to spend your money and I want to tax you because his belief is, you’re not smart enough to, you know, manage your own money. Right. He needs to do it for you. Right. That’s his entire mindset clearly. And but, but only for the rich. Sure. Because you know, that’s how politicians sell tax increases every year. Only for the rich, not for everybody, just the rich, like, you know you know, and by the way, I also have swamp land to sell you in Florida. But here’s the, what he’s been talking about lately. He’s now the big thing that people are talking about is he made this comment that I want to talk about. He said that we’re going to increase these taxes, like capital gains tax rates, for example, on the rich. And he wants to make it retroactive to when he made the announcement that he wants to increase taxes on the rich.

Zach:

So what does that exactly does that mean? Retroactive

Mike:

Explained by the way, they don’t even know because there’s multiple dates that they could use for retroactive. But basically what he wants to do is he wants to say, I want to pass these increased tax laws, maybe later this fall, but I want them to be effective like in April or may, which is the goofiest thing in the world. Right? So part of the year we’re going to have one tax law and then the rest of the year, we’re going to have a different tax law. It seems like this is just designed to confuse people. It’s just classic stupid. Like I’m a politician. So I want to be well words that I would get bleeped out on out of your mouth, right? It’s like, it’s the dumbest thing in the world. I mean, there’s a number of reasons. It’s stupid. Right? Number one as though the tax code isn’t complicated enough, let’s make it even more complicated.

Mike:

That’s a great idea. Right? That’s silly. Number two, number two. How many how many lawyers do you think are salivating? This idea, think about all the money they’re going to make suing the, you know, basically suing the government or suing the system saying you can’t change the rules midway through and blah, blah, blah. Now here’s reality. I think historically, if I’m not mistaken, there’ve been a couple of times when the government made a tax law change and then they made it retroactive and it created chaos both times. So the odds of this ha so here’s the thing, folks, this just, it’s not going to happen. They’re not, I understand that our current, I don’t know what we get for presence these days, but our current president, I don’t know what his problem is thinking. He wants to make things retroactive. I mean, I get the impression, you know, how, when you go into a you know, into a negotiation, so like, let’s think about this.

Mike:

I, you know, every, so often the, like the NFL, the players association, the owners, they have this big negotiation session. Right. And whenever they do that, both of them just throw in just all these different wishlist items that they’re just throw away items, right? It’s you go into a negotiation, you say, let’s make this long list of things. It would be awesome to have knowing that they’re not going to be accepted. Sure. But it’s going to make us look good. It’s gonna make us look like, Hey, we’re giving something up. Right. It makes us look good by giving up something we didn’t want. Anyway. That’s what I, I really believe that that’s this retroactive thing that’s what’s happening now. Yeah. So basically they’re saying we want to increase taxes, but we’re going to make it retroactive. And it’s one of these things of like, they know nobody’s going to accept it.

Mike:

They know it’s a throw away, but they think, yeah, it’ll make us look good for giving it up. That way we can give this up. And we don’t have to give up what we really want, which is increasing taxes and capital gains eliminating step up a basis. And all these other things, they’re very sneaky. They’re just weasels. Right? Politicians. Like every, if you look in the Def in the dictionary, whenever you see the word politician, what they should do is just put a picture of a weasel, you know, right there and say competitions or weasels now are all of them. No, all of them are not weasels are the overwhelming majority of politicians weasels, especially those that have been there for multiple terms. Yeah. Right. Yeah. I mean, we could do a different show in term limits, but this is a financial show, not a political show, I guess.

Mike:

Right? So we’re talking about taxes. So one of the big worries is they’re going to increase taxes on capital gains. They’re selling this in DC as saying, oh no, it’s only going to affect people over a million dollars of capital gains. And by the way, that’s their line. But, or, oh no. It’s only going to affect people that make over 400,000. They’re so full of baloney. Like their eyes are all brown, right? Yeah. It’s going to what they really want while they’re talking about that. What they’re really wanting to do is eliminate step of a basis at death and eliminate the 10 31 exchange rules. Now for if you are a real estate investor, by the way, you know what 10 31 exchange rules are. If you’re not a real estate investor, 10 31 exchange simply means that allows you to sell one investment property, take the money, invest it in a, another investment property and defer the tax. So they want to get rid of that too. They want to get rid of a step up a basis and they want to get rid of that 10 31. Yep. That’s what they really want. But they’re using the smoke screen of we’re going to increase capital gains on the rich people, you know, and they’re going to shove that other stuff in there and they don’t want you to pay attention to it right there that in a whole bunch of other stuff. So, you know, here’s the thing.

Mike:

This is one of those times that you absolutely need to get educated on what they’re doing in the tax code. This is not one of the times you can bury your head in the sand right now. You have got to F you have got to bring yourself up to speed and understand, okay, here’s what they’re talking about doing. And here’s how it affects you. Right? Tax increases are coming. We’ve been talking about this for years, but it’s here. Tax increases are coming. They’re coming in a lot of different ways. You need to figure out, you need to understand how they work. You need to understand how to protect yourself. Right. And Zach, that kind of brings up. We we’ve got this a special thing happening. I mean, gosh, it’s coming up

Zach:

Already, right? Yep. Tomorrow night and actual real live event in person. Can you believe it?

Mike:

Yeah. I’m actually going to be talking in front of real people. I’m I’m, I’m shocked instead of just like on zoom,

Zach:

Right? Yes. This is a real in-person.

Mike:

So let’s, let’s talk about that a little bit because we’re doing event tomorrow. It’s tomorrow night. You’re going to give us the details here in just a quick second. Yep. But tomorrow night I’m going to share in a live setting to say, look, here’s what they’re talking about doing. And here’s how you need, these are the steps you need to take right now to protect yourself against all these tax increases that are coming down. The, the, the Washington turnpike here. So Zach, why don’t you fill us in on what we’re, what we’re gonna,

Zach:

Yeah, absolutely. So we’re calling this event, retire texts, smart. It’s going to be at the movie house, which is a movie theater in Northwest Austin, right off six 20. It’s going to be at six 30 on Tuesday. Tomorrow night. Okay.

Mike:

Yeah. Hold on. So tomorrow night at six 30, it’s at the movie house in eatery. Yep. You got it. So what are we doing?

Zach:

Popcorn. Yeah. We’re going to have complimentary popcorn drinks, snacks. You’re going to be able to sit in a comfy chair and, you know, listen to Mike, talk for about an hour about these things.

Mike:

Okay. So got it. So it’s going to be at the movie house in eatery on six 20. It’s kind of right across from Concordia university, I think. Yep. And so how do people sign up? Like how, how, if you’re, as you’re out there, you got to get educated. This is a free event, free popcorn, free drinks. And you get to listen to me, help you make better tax decisions. So how do they sign up?

Zach:

So two different ways. If you want to sign up for this event, number one, you can go to tax free, movie.com again, that’s tax-free movie.com. It has all the information on the website and a simple form. You fill out to sign up, you input your information. Boom. We send you a confirmation immediately with all the details, or you can just give us a call at our office. Now it’s after hours, you can just leave us a voicemail with your information, and we’ll follow up with you tomorrow morning with all the details. And that number is five one two two six five, 5,000. Again, it’s five one two two six five, 5,000.

Mike:

All right. So I’m going to just recap what I heard you saying. And Zach, tell me if I heard this properly tomorrow night from six 30 to seven 30, we’re starting six 30 sharps. You want to actually be there a little early? Yes. Six 30 to seven 30. We’re going to talk at the movie house in eatery, right across from Concordia university. It’s off six 20, right? Yep. Yeah, between one 83 and 22, 22 right down there. Absolutely free to attend. Yep. They can find out more information they can sign up by. Was it tax-free movie.com. You got it. I hear that. Right.

Zach:

You got it. Tax-Free movie.com. Okay.

Mike:

Or they can call our office, leave a message. And this is a different number than we normally give out. But it’s our direct line. Five one two two six five, 5,000. You got it, right? Five one, two, two, six, five, 5,000. All right. That sounds awesome. All right. I don’t want you going anywhere. We got to wrap up this segment, but coming up, I’m going to talk more about the step-up in basis thing. What does that really mean? And how does that affect? Pretty much everybody. We’ll be right back.

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