Sunday, July 13, 2025
spot_imgspot_img
Sunday, July 13, 2025

Milwaukee Press Club 'Excellence in Wisconsin Journalism' 2020 & 2021 Award Winners

A Terrifying Tax Case on ‘Unrealized Gains’ [Up Against the Wall]

spot_img

There’s a case pending in the U.S. Supreme Court that will decide the fate of this great nation as well as decide your individual fate. If the court decides to in favor of the IRS, we’re in deep, deep trouble.

What the IRS wants is to tax a paper change in the value of your assets – they call it a tax on unrealized gains, which sounds like it’s reasonable, you know, a tax on your gains, until you find out that they want to tax gains you were never paid, i.e. value you have not received in the form of any cash or profit, but you’ll still have to pay the tax anyway.

To explain this in simple terms, if the IRS wins, you’ll be paying taxes on gains in your home value that you never received because you didn’t sell the house. You’ll pay taxes on gains from a mutual fund investment you made but which you didn’t sell. The same with stocks you bought, but didn’t sell yet. Your stock value goes up, surprise tax! The value goes down, so sorry, no refund for you. Heads the IRS wins, tails you lose! It’s a lovely setup. 😉 Although the Supreme Court case involves U.S. shareholders in foreign corporations, a decision upholding the constitutionality of taxing unrealized gains could be seized on by the left to create broader implications.

The vast majority of Americans don’t understand the history of the income tax and how it directly relates to economic booms and busts. Liberals in particular don’t want this story told because it runs contrary to everything they want – and what they want is your money. President Biden and Congressional Democrats have also made an attempt to tax unrealized gains through the legislative process. Although they would target the wealthiest taxpayers, it’s a slippery slope that could spread.

The first thing to know is that our great nation thrived just fine without an income tax for 137 years! That’s right, there was no income tax until 1913. You got to keep 100% of what you earned! I know, I know, it’s hard to believe, but it’s true. Just see the chart below.

Unrealized gains

The next thing you’ll notice is that the income tax started at about a modest 7%, but politicians couldn’t help themselves, they raised tax rates almost immediately after passing the income tax bill, many years before WWI to about 77%. Yes, you paid almost 77 cents on every (marginal) dollar you earned. Then look at what happened. When Calvin Coolidge came into power, the income tax rate was lowered to about 24%, and guess what happened? The economy took off. Remember the Roaring Twenties? That wasn’t magic; it was Americans keeping more of their own money.

Then look at what happened next. Hoover got higher import taxes passed, other nations retaliated and raised their import taxes, trade slowed to a trickle, and then your elected officials raised tax rates to over 60% just to really stick it to the American people. (The Federal Reserve Bank piled on too – tightening credit and the money supply to choke off the economy.)

This led to FDR getting elected, and he raised tax rates even more – including raising the lowest marginal income tax rates on the poor – yes, that’s right, FDR raised the tax rate on the lowest income Americans to about 20%. So much for his claims to be looking out for the average Joe. The highest income earners also got choked off with a tax rate that topped 80% and then 90%. Yes, you paid 90 cents on every marginal dollar earned. (I won’t calculate the total tax based on the marginal rates.) And now you know why we had the Great Depression. FDR doubled down on Hoover’s bad tax policies, stealing almost every single penny that Americans earned.

Then what happened? President Kennedy took office and lowered the top marginal rate from 90% to 70%, and surprise, the economy took off again. Rates stayed there until Reagan lowered the top rate to about 50% and then he lowered the top rate again to 28%, and the economy boomed even more. But then Clinton had to come along and spoil the fun, raising taxes and causing the economy to falter. In fact, the real estate industry went into a recession until he reversed course one year later.

Have you noticed a pattern yet? A high marginal tax rate causes recessions while lowering rates results in economic growth. This ain’t rocket science. It’s a simple relationship that liberals don’t seem to understand, or more likely I believe, they do understand but don’t want Americans to know about it. hey still hold up FDR and his socialist policies as some kind of miracle maker, but it was WWII and all the buying of arms from the allies that got America out of the FDR Great Depression.

And libs never talk about the fact that Reagan correctly calculated the optimal tax rates that would produce the maximum tax revenue for the government, which is about 25% to 28% for the top rate and 15% for the lowest rate. Unfortunately, liberals still like to pretend that raising tax rates above this will produce more total revenue; but it doesn’t. They do this to create class warfare.

What raising tax rates does do, is tank the economy and hurt all Americans. Their real goal is to just take your money, but they fail to consider that you will change your behavior at higher and higher tax rates; i.e. you will work less, invest less, take fewer risks, hire less, and maybe even just stop working because it isn’t worth it.

History proves that if you have to give up 50% to 90% of your income to the thieves in the government, you will work less or stop working. The result? Lower total tax revenue, but they don’t care. It’s about the show – the appearance of taxing higher incomes more to show lower-income Americans that they are hurting those higher-income families in order to turn one group against another – so they can get elected.

So there’s your history lesson on tax rates. Let’s repeat history – but make it Reagan’s history of lower tax rates.


On October 18 and November 23, 2023, Donald Trump tweeted out on Trump’s Truth Social account T. Wall’s October 6th column on Trump’s property valuations. T. Wall holds a degree from the UW in economics and an M.S. in real estate analysis and valuation and is a real estate developer. Disclaimer: The opinions of the writer are not necessarily those of this publication or the left!

Brown Deer Police

Boy Invites Brown Deer Cops to His Lemonade Stand & Gets His Wish

A boy invited Brown Deer police over to his lemonade stand and got his wish! It's the heartwarming story of the day, and Brown Deer...
jerome powell

Fed Chair Candidates & New York’s Mayoral Race

Before we talk about the candidates for the Fed Chair position, let’s discuss for a moment the problem with Chair Powell’s current thinking. Right...

Q&A with Tommy Clark, Author of The 2020 Portland Riots: A Fight Against Domestic Terrorism

By Chris Mann Read part 1: Chris Mann's review of The 2020 Portland Riots: A Fight Against Domestic Terrorism by Tommy Clark. Tommy Clark and...

Protecting Portland: No Good Deed Goes Unpunished [REVIEW]

By Chris Mann An In-Depth Review of The 2020 Portland Riots: A Fight Against Domestic Terrorism by Tommy Clark. This summary is the second in...
Governor’s Veto Powers Wisconsin Republicans Parental Bill of Rights Outlaw Child Sex Dolls Embrace Them Both Unemployment Reforms Wisconsin’s Professional Licensing Bail Reform Amendment wisconsin covid-19

Conservative Wins in the Wisconsin State Budget Bill That Passed July 3

Wisconsin has a divided government, and, with a Democrat in the governor's mansion, conservatives were not going to get everything they wanted. However, there...

Shorewood Officer Shot; Glendale Pursues Suspect, Who Appears Dead

A Shorewood, Wisconsin, police officer was shot but saved by his bulletproof vest in the early morning hours of July 3. Several hours later, Glendale...
kendall corder

MPD Confirms Sad News That Officer Kendall Corder Has Died; Procession Unfolding

The Milwaukee Police Department has officially confirmed the tragic news that Officer Kendall Corder has died in the line of duty. Earlier in the day,...

Oconomowoc Rotary Refuses to Document ‘Threats’ & There’s No Police Reports

Getting criticized is hard, but reasonable criticism - even heated criticism - is not a threat. And it's what representative democracy is all about,...
kendall corder, tremaine jones

Tremaine Jones: Milwaukee DA Declined to Prosecute Him 4 Times Leading Up to Officer Shooting

KEY FINDINGS: Accused cop shooter Tremaine Jones was given a deferred prosecution agreement for a 2021 Milwaukee case involving a stolen Kia and...
Killed by Milwaukee Reckless Drivers Milwaukee Reckless Drivers Kill Box In Milwaukee Police

2 Milwaukee Police Officers Shot Near 25th & Garfield

Two Milwaukee police officers were shot on the evening of June 26, police confirmed. One officer remains in critical condition and the second does...
josh schoemann Washington County’s Early Vote

2026 GOP Candidate Josh Schoemann Challenges Evers’ Budget Approach

(The Center Square) – Josh Schoemann, the only Republican currently in the race for governor next year, is criticizing Gov. Tony Evers’ approach to the next state budget by comparing it to his plans in Washington County.

“In Washington County our budget cycle starts right now, and it’s not due until November. We will propose our budget goals to the County Board in the next couple of months. We will share ‘This is what we’re thinking.’ It gives them months of time to think those through, give us feedback, and [have] that kind of dialogue,” Schoemann explained in an interview on News Talk 1130 WISN.

Schoemann said that is far better than the approach Evers is taking again this year.

“That’s not how government is supposed to work,” Schoemann said. “It’s not the vision of the governor. It’s not the vision of any one person.”

Evers and the Republican legislative leaders who will write the budget have been involved in on-again, off-again budget talks this month. On Thursday, the governor’s office said those talks were off once again because of gridlock in the Senate.

“Ultimately, the Senate needs to decide whether they were elected to govern and get things done or not,” Evers spokesperson Britt Cudaback said in a post on X.

Schoemann’s criticism of Evers is nothing new. He has long been a critic of the governor and has turned that criticism up since launching his campaign for governor.

But the recent criticism was also aimed at other Republicans who may jump into the 20206 governor’s race later this year.

“Nobody else in this race on the Republican side, being rumored to this point, has the executive leadership of skills and history to be able to show ‘This is how I’ve done it before, and here’s how we’ll do it Madison,’” Schoemann said. “The results in Washington County speak for themselves.”

Northwoods Congressman Tom Tiffany is also rumored to be looking to get into the Republican race. Before he went to Congress, Tiffany was a Republican lawmaker in Madison.

Businessman and veteran Bill Berrien is also on the short list of likely GOP candidates for 2026.

richard van buren

Richard Van Buren Arrested in Dodge County Dog’s Death, Sheriff Says

Richard Van Buren, the chairman of the Chester Town Board in Wisconsin, was arrested in the death of a golden retriever dog in rural...

Rep. Donovan, Greenfield Officials Outraged at Release of Accused Random Stabber

State Rep. Bob Donovan and top Greenfield officials are expressing outrage and concern over the release of a man who is accused of randomly...

Dodge County Dog’s Death Under Investigation by Wisconsin Sheriff

Update: Richard Van Buren, the chairman of the Town of Chester Board, has now been arrested. See the story here. The Dodge County Sheriff's Office...
Anthony LoCoco

Anthony LoCoco Running for WI Court of Appeals to Defend the Constitution

Note: Anthony LoCoco, of Waukesha, has worked for the conservative Wisconsin Institute for Law & Liberty and the Institute for Reforming Government. He is...

Milwaukee Alderman Voices Frustration at ‘Crumbling’ Roads, Massive Cost Estimate

The Common Council’s Finance and Personnel Committee heard from City Engineer Kevin Muhs today "about a newly released report from the Department of Public...

Oconomowoc Rotary Club Apologizes, Reverses Course After July 4 Parade Mess

The Oconomowoc Rotary Club has apologized for the mess surrounding its July 4 parade and will now allow political parties and elected representatives to...
Killed by Milwaukee Reckless Drivers Milwaukee Reckless Drivers Kill Box In Milwaukee Police

Milwaukee Police Officer Shot by Armed Suspect in Foot Chase, Department Says

Two ghost guns were recovered. A Milwaukee police officer was shot by an armed suspect who refused to drop his gun during a foot chase...

Milwaukee Police Association Raises Alarm on Low District 7 Staffing

The Milwaukee Police Association is raising the alarm about severely low staffing levels in District 7, one of the city's busiest police districts. The MPA,...
uw-madison Administrators at UW Schools

UW Employs 495 Foreign Nationals at Almost $43 Million a Year, But Won’t Release Their Names

With salaries ranging as high as $320,000 a year, are the foreign nationals getting taxpayer-funded jobs at UW instead of qualified U.S. citizens? The...