Kamala Harris didn't tell you that she has a planned tax armageddon.
That's what they're calling a double whammy to increase your taxes and it has more Americans
looking for the exit.
We're going to share the article from London's Telegraph newspaper and tell you how to prepare
for tax armageddon.
Grieving Americans will be hit with a so-called tax armageddon if Kamala Harris wins the
presidential election under new rules to raise federal funds from inheritance.
The vice president is planning a double raid by lowering the threshold at which relatives
pay a state tax and abolishing a rule that allows children to inherit properties without
paying capital gains tax.
So this is in addition to the idea of an unrealized capital gains tax, or even what
Elizabeth Warren has talked about she wants, is a wealth tax every year.
Wealthy Americans have begun passing on their assets to their children as gifts to avoid
the potential new rules which could come into effect in mid-2025 if Ms. Harris wins the
election this November.
I was on Fox Business in December of 2020.
Joe Biden had just been elected but not inaugurated yet.
The question was what do we do before the end of the year because if Joe Biden
gets in, here's the thing, people talk about the rule of law in the US and how
strong the institutions are.
The thought was he'll get in, they'll pass a law in June, for example, but it'll cover
the entire year.
And so what have I always told you?
Well, here's what I said on Fox Business.
I said you have to prepare in advance, better years too early than a day too late.
And I think a lot of people are trying to play it by the seat of their pants.
First they're going to see if Kamala gets elected.
Then they're going to kind of think what's going to happen.
Then they're going to like, you know, slowly take steps.
Guys, I don't care if Kamala wins or not this time, the direction, the momentum, the voice
of the average person is take those rich people's money, whether it's through inheritance, whether
it's through new capital gains on those estates, whether it's capital gains tax on your business
or your farm or whatever else that you haven't realized yet.
You know, there's an education crisis in the US.
A lot of people don't know basic economics and so they don't understand how this
stuff works, but it sounds good.
And Kamala, she's not the first and she will not be the last politician to use demagoguery
to do that.
Now, by the way, Trump had taxes that were retroactive.
So the idea that if Trump wins, you're totally safe.
That's not the answer either.
They all do it and they're going to have to do more of it because the countries broke.
You've got a trillion dollars just in interest now.
I don't care who wins.
I mean, look at other Western countries where they've gotten to the level of that the US
is at now.
You elect the more right-wing guy.
They're just a caretaker running as well as they can.
They're not making things better.
The momentum is headed in the wrong direction.
So wealthy Americans have begun passing on assets to their children as gifts to avoid
potential new roles.
This is not tax or financial advice.
What I do know is you should do something, not because of Kamala, but because of
the trend.
And whether it happens six months from now or four and a half years from now or eight
and a half years from now, there is going to be this and other nasty stuff.
I'll tell you my more aggressive solution to this in a minute that I think is actually
better.
But let's continue.
Kamala has adopted several tax proposals originally suggested by Joe Biden.
So stuff he never got around to.
She might carry that torch from the 2020 campaign, including the changes to inheritance
tax rules under her plan, the threshold at which inheritors pay estate tax
will fall from its current level of 13.6 million to three and a half million.
So if you're the seven and eight-figure entrepreneurs that we talk to here at
Nomad Capitalist, the ones we serve as clients at nomadcapitalist.com slash
apply, you're going to have $10 million in exemption whacked.
On top of that, the article says she will also abolish the step-up basis
which cancels that capital gains bills for inherited properties.
Now I'll tell you what.
But we don't serve very many of any trust fund kids around here.
I believe in hard work.
I wouldn't believe in my kids a lot of money, but I'll be damned if Kamala Harris
is going to tell me that the money I've earned, when it all comes down to it,
she's going to take more of it again.
Why?
It's just wrong.
And yet in a speech, Ms. Harris made no reference to her plans to change
estate tax policy and step-up basis policy.
I don't know entirely why.
I think we've talked about the surveys.
We look anecdotally at comments people make here and on other things online.
Seems people in the Western world are pretty comfortable in taking rich people's
money, hey, past three and a half million, who cares?
I know people who are pretty right-leaning who are like, hey, if it's over
a hundred million, fine, squeeze them.
Not realizing it always comes down over time.
The numbers come down not only because once they're in, they just
lower the number, but also because inflation, the number becomes
worth less and less.
So I don't know why Ms. Harris is not making a reference to this.
I think it'd be plenty popular.
Take money from the rich.
It always works.
It worked for Obama.
His number for income tax was 250.
Biden, again, largely inflationary.
His number was 400K.
It's a class warfare game.
It's basically take money from the guy with $13.6 million because, hey,
why should his kids get it?
Well, again, not a huge fan of some kid just getting $13.6 million,
less a fan of Kamala Harris getting it to waste on something stupid.
A document published by her campaign
pledges to increase the rate of capital gains tax,
but notes it is the same rate previously put in place
in the 1996 bipartisan, da, da, da, da, da, da, da.
We're going to raise your taxes, but we're going to make it
seem like we're not raising your taxes.
Telegraph says headline grabbing over concrete plans.
Ms. Harris has said little about her plans
to continue an estimated $5 trillion tax rate,
first planned by Mr. Biden, focusing instead
on headline grabbing policies to counter inflation
that's what Biden did.
However, analysts by the Telegraph
suggest that they could almost quadruple
the tax paid on a $20 million inherited property
that's been owned by a deceased relative since the 1960s.
So basically, right now, you'd pay $3.5 million.
Now, you'll pay $13.2 million.
That's $9 million, it says, in estate taxes at 55%,
and another $4.2 million in capital gains tax
versus where the property was purchased.
You know, obviously most people don't have $20 million,
but plenty of normal people have $20 million.
You build a business and you sell it.
I know a lot of people who are leading very normal lives
who've sold businesses for much more than $20 million,
and they worked hard their entire life
and they're honest, ethical people,
and they came to nomad countless
because they like that we're the goody two shoes
of the offshore world, and we don't cut corners
and we do it right, but they've paid enough.
And you know, I think that's the problem
is we have this image in politicians
like Kamala Harris play into it, and again,
she's just the current stand-in.
There'll be plenty more where she came from,
and there'll be plenty more surrounding her
in the Congress and in the media and everywhere else,
but they have so demonized the person
who built a business over the course
of some number of years.
It makes a couple million bucks a year.
They pay taxes at the highest level,
and then one day they sell it for 20 million
and they get squeezed.
And that's the challenge.
There are places in the world where no one,
as one of my friends says, looks in someone else's pocket.
There is less of a culture and envy in some places.
The Middle East certainly wants to welcome people with money.
I think Asia wants to welcome people with money.
There's lots of places you can go and be left alone
where they want to welcome you.
Why would you stay in a place
where you are a political football
because they paint you as some guy,
some playboy and a yacht,
you know, licking caviar out of a supermodel's navel?
You just built a business and you sold it.
In this case, they talked about an asset from the mid-1960s.
That person's pretty old.
They spent an entire life building wealth.
What they paid for in the mid-1960s, my goodness,
how has the dollar depreciated since the mid-1960s?
That's what these politicians never tell you.
Their policies devalue your currency
and then they're like, hey,
you got to pay this huge gain you have.
In many cases, you don't have a gain,
but they will paint you as the rich fat cat
on the yacht with the supermodels.
By the way, it's the point where I've just said,
you know what, I'm going to be overseas
and I'm going to have my series, Live Like a King,
and I'm going to sip champagne and eat caviar
and associate with attractive people.
And you know what?
Come and get me because I left.
And that brings me to the more aggressive suggestion.
All these families are talking
about how can they give their stuff to their kids.
My suggestion is, why don't you at least
get somewhere in the spectrum of making an exit?
Now, we have about a 50-50 splint of what I'm told
these days of clients who want to plan A
versus who want to plan B.
Plan B is I'm going to get a second passport
because if I'm an American, here's the worst part,
these policies will follow me no matter where I live
because the United States taxes its citizens
no matter where they live.
Elizabeth Warren said, hey, those European countries
couldn't figure out wealth tax.
A lot of them scrapped it since the turn of the century.
Didn't work.
She said, we'll make it work
because we tax people no matter where they live.
You can't run and hide.
And so if you get a second passport,
whether it's the Caribbean Citizenship
Buy Investment Program,
whether it's through a real estate program like Turkey,
whether you're going to spend close to a million dollars
and you're going to get citizenship in Malta,
which Good News has just been affirmed by Europe.
They can continue that program.
That's the gold standard of passports you can get
by making an investment.
If you're going to get one of those passports,
now you're in the driver's seat
and it's going to be a lot easier for you
once you have that second passport
and you start traveling perhaps on that second passport,
you start feeling a little bit different
being a dual citizen.
One thing I've heard clients tell me to my face,
I feel different.
That passport came, I feel different.
I feel I have more options.
And what are the options you have?
Well, if it ever gets so bad
that they want to take $10 million extra from you,
you can choose to walk into a U.S. Embassy
outside of the U.S.
And you can say, you know what?
I'm Maltese or I'm St. Lucian
or I'm from whatever country.
I don't want to be American anymore.
And you can do that before the policy comes into place.
But don't be the person calling nomad capitalist
a week before the policy goes into place
because it's often too late then.
So you want to have the second passport now.
And so I look at this kind of in an actuarial basis.
If I'm looking at with $20 million,
getting stung for an extra 10 million bucks,
hey, can I go out and spend a quarter of a million dollars
to increase my freedom by having a second citizenship?
I'm not saying people should give up their citizenship
just for the taxes, but you know what?
It's not just about the taxes.
It's you are being reviled, right?
I give up my citizenship.
The taxes really, it wasn't the factor.
It's about where is the country going
and how am I treated as an entrepreneur
plus a number of personal factors.
So it's really never about the taxes themselves.
But my point now is you're going to have to commit
some amount of capital to set that up
if you want to be ready
whenever some new policy comes down the pike.
And you don't know if Kamala gets in
and that comes in place six months from now
and you're going to be scrambling
or maybe it takes your two years.
Who knows?
But there's nothing wrong with having two citizenships.
There's other opportunities that opens up for you.
And you know no matter what happens in your country
you've got another option.
You don't even have to spend the money.
If you've got ancestry
we help people get citizenship by descent
through Ireland or Poland,
all countries all over Europe and Latin America.
That's going to cost you a heck of a lot less
but it's going to take longer.
That could be the concern in this case.
But my point is rather than be moving assets
around between your kids and giving up control
to me I look at that as inorganic.
I'd rather be in the driver's seat organically.
If I own an asset, I want to own the asset.
I'd rather change where I live.
I'd rather even change my citizenship
than take inorganic measures.
Because I think that sometimes
that doesn't work out too well.
When you're like I just gave all my stuff to my kids.
I also think that they're not going to like that too much.
So that's what I would do if you want to learn more
how we help people get second passports
and plan that all out from best to worst case scenario.
How we work with the network of experts around the world.
Go to nomadcapitalist.com slash apply.
We have more second passports
than I think pretty much anybody out there.
We are not beholden to any one or three or five countries.
The article continues.
A financial advisor who once took me out to dinner
when I was just starting out and said I'm the greatest
and now makes snarky comments behind my back
because we are number one in the industry.
Says many of his clients were transferring their assets
to their children under the current rules
fearing tougher policies under a Harris administration.
Use it or lose it.
The article says don't wait until you die.
This is a change and I think it's a change.
Yes. There's been politicians.
Obama they were concerned about.
Listen your taxes went up under Obama.
You know haven't you paid enough at a certain point.
I think that as much as you push back
on the fair share argument because you realize
you do pay a lot of taxes as a wealthy person.
You're not Amazon.
You know you are paying a lot
if you just have a successful business.
I think there is still some creep
where people think well you know
how much better can it be somewhere else.
I'll just pay.
I'm living proof.
There's plenty of places both in the developing
and developed world that you can go and live
with your second passport and have a much better life
where just the culture is going to be more
in favor of you having wealth.
But people are gifting like crazy.
That's one option.
My options the other.
Democrats have long sought to abolish a loophole
in capital gains tax which allows children
to inherit their parents assets without paying tax
on the gains since it was originally purchased.
Again how much of that is an actual gain
and how much of that is the dollar is just worth less.
But guess what the government like any toxic relationship
they're not going to blame themselves
and their own policies.
No no Kamala Harris doesn't get into power
by blaming the government by blaming herself.
She gets into power by blaming you
because there's not very many of you.
There's not very many of me.
And I think to say well is 10 million dollars
that important to you.
First of all 10 million dollars is a hell of a lot of money
and if you let that 10 million dollars to charity.
Now I understand that if you live to certain charities
you'll get out of this.
But if you live to charity that 10 million dollars
is going to do a lot more for a charity
than for Kamala Harris' U.S. government.
That'll be gone like that.
Like that.
It's gone.
Listen if the momentum's going in the wrong direction
no politician's going to save you.
And so it goes on and on
about one of the worst tax ideas floating around.
Here's the bottom line.
You want options.
Half of our clients are setting up plan B give or take
where they're getting the second passport.
They're getting comfortable with where would they go.
Maybe they move some assets.
They open a trust.
They do any number of things.
Just putting your money in an offshore company
or an offshore trust doesn't change the tax policy
where you live.
They've figured that one out.
It's more about moving your
than just your assets.
But they're getting a head start
so that they're in the driver's seat
because it doesn't take three days
to get the second passport.
It takes a little bit longer these days
to get some of these investment passports
in the Caribbean.
It used to be four, five, six, seven months
with all the paperwork.
If we handle it for you
now, it could take close to a year.
Why?
Because people like Kamala Harris
go down to the Caribbean
and they throw their weight around
and they say you got to do interviews over the phone
and you got to do this and got to do that
and that slows down the process.
But now it takes longer to get a passport.
So you don't want to be the person that's
in the queue waiting around
and it takes longer than it used to
when some new policy comes into place.
I've been telling you this for the years.
We've seen people ringing us up
when something bad happens
and hoping we can save them in a week or two.
We can't.
You got to do it in advance.
So, you know, go to nomadcapitalist.com slash apply.
There's a whole plan you want to put in place.
Just getting a passport
and not knowing what to do with it
is not going to save you.
You want to be prepared.
The other half of the clients are doing a plan A
where they're moving overseas.
There's an American that has a lesser impact
because they do follow you
in the capital gains tax.
Some of them are moving to places like Puerto Rico.
Some of them are just taking the tax savings
in the business.
Some of them, they're planning to
to renounce U.S. citizenship.
So, you can choose.
Are you starting with plan B
and being ready with triggers for plan A?
Are you starting with some version of plan A?
That's what you have to figure out.
That's what you've got to decide for yourself.
But what I want to tell you is
don't be stuck holding the bag
when quote, unquote,
one of the worst tax ideas
floating around comes to fruition.