Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Yesterdays tax case dealt with taxing unrealized income. The problem is, as Justice Neil Gorsuch noted, when the Supreme Court opens a door, "Congress tends to walk through it."

Todays WSJ: "The Ninth Circuit Court of Appeals rejected the Moores' challenge and said "realization of income is not a constitutional requirement." The Ninth Circuit's opinion opened up a freeway to tax wealth and property. And wouldn't you know, President Biden's budget this year includes a 25% tax on the appreciation of assets of Americans with more than $100 million in wealth."

So, typically once the federal government gets its nose under the tent, it ends up really expanding from there. For example, look at Social Security, originally the government said it would never get above 2% of income.

Imagine the federal tax collections from taxing the unrealized earnings and/or appreciation on Americans stock holdings!

To add insult to injury, the federal government could tax Fannie Mae and Freddie Mac Shareholders Unrealized and Undistributed Earnings (currently retained by the Corporations at the rate of $20B-30B/year to build much needed Capital) and/or any unrealized appreciation if the Shareholders stocks happen to increase in the future.

Britt Kavanaugh said that "Congress wouldn't do that because they would be voted out of office."

But if the Supremes gave them the Green Light, you never know.