In this solo episode, Jason Hartman discusses the COVID-19 Stimulus Bill and AB 2088. He questions the stimulus bill that congress released and where the tax dollars are going. Jason also shares his thoughts on Assembly Bill 2088 and why it’s driving the rich out of California.
Announcer 0:02
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multimillionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in 1000s of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it on now. Here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 0:53
Welcome to Episode 1621 1621. Thank you for joining us today. As I have a bit of a rant. It’s coming up. We were gonna do it yesterday. I think you’ll enjoy it. It’ll be humorous, to say the least. But you might find it to be somewhat indignant. If that’s the right word. I don’t know. I’m not settled on that being the right word. Tell me what you think. Go to Jason Hartman comm slash ask and let us know. But Ladies and gentlemen, guess what just happened? You probably read about it already. If you read the news today, or even the latter half of yesterday, we didn’t have time to report on this yesterday. We were going to but there just wasn’t enough time. Because yesterday was a 10th episode show on genocide. Yes, that was about yesterday, 10th episode show. You know, we bring you all this cheerful news for the holidays. That’s what we’re trying to do. Right. And the yesterday was the darkest day of the year. So in the Northern Hemisphere, brightest, daily, or longest day of the year, in the southern but now the good news is, every day, From this day forth, gets longer and longer if you’re in the Northern Hemisphere. So there we go. It’s like the lyrics to the Triumph song. The days are getting shorter, and the nights are getting long. feels like we’re running out of time. Every day, it seems much harder, telling right from wrong. You’ve got to read between the lines, don’t get discouraged. Don’t be afraid you can make it through another day. Make it worth the price you pay, fight the good fight every moment, every minute, every day. That’s what we’re all about here fighting the good fight every moment, every minute every day. I may not have done those lyrics, right. That was pretty spontaneous. But that’s an old song by the band triumph, which has fantastic lyrics. also fantastic lyrics. JOHN Denver rush. I know. That sounds like it’s complete opposite ends of the spectrum, doesn’t it? But that’s how eclectic I am very eclectic. Alright, so the longest largest we the shortest day in the Northern Hemisphere, but we have a longest bill ever passed. And you know what I’m talking about? It’s the latest quackery coming out of our government in good old Washington DC. The relief bill was 5593 pages. And what did you get out of it? You’re gonna get 600 bucks, maybe, maybe you’ll get 600 bucks. Maybe you won’t get anything? Depends, depends on your folks. It is unbelievable. People have put all of this effort into the government. They paid the government all of this money. And all we’re getting back is 600 bucks. But at the same time, we’re getting $600 back. Do not worry. Do not worry. Because, Hey, everybody got $1200 about what, five, six months ago. And the government has shut down your business probably, you know, curtailed your job or maybe you lost your job completely because the business he worked for shut down. But hey, you got 12 $100 many months ago, and you’re gonna get another $600 here in the near future. So yeah, if you think that’s absurd. Just wait, because it gets worse. It gets even worse. Yeah, it does.
Okay. So the corrupt officials in Burma They’re going to get some money, because hey, you know, for given American $600, we got to spread the wealth, right? We got to give, give money to some other folks around the world can’t just be for America can just be a simple two page bill. It’s got to be lined with a bunch of pork pork barrel legislation. That’s what they call it, because the President does not have a line item veto. So all of the Democrats, the hypocrites, the rhinos, the republicans in name only the traders to America. Yes, the traitors to America. Now, by the way, before I get on with these other numbers, on how we are being sold out in this country. And let me tell you, I still think America is the greatest country. But it is sinking fast, it is sinking fast. And especially if we have Biden and communist Harris come in and take over which it’s looking a lot more likely like they will look more likely. But it takes a long time to destroy such a great country with such great checks and balances. But they’re doing the best they can. I just want you to know, folks, your representatives are doing the best they can to unwind all of the genius of the founding fathers and all of the checks and balances they’ve put in to protect we the people, they’re doing the best they can. So just to compare. Remember, I’ve talked to you about the Dodd Frank bill, which affected real estate and mortgages and lending and banking, and all of this stuff. And the Dodd Frank bill was I think, 2200 pages. The Obamacare bill, you know, the one where idiot, Nancy Pelosi, idiot, Queen Nancy Pelosi, sorry, Her Royal Highness, Nancy Pelosi said, we’ve got to pass the bill to read what’s in it. Right? That was 2700 pages, give or take. This one is 5600 pages. So you can’t make this stuff up. pork barrel legislation. You know, you do one thing, it’s to give everybody 600 bucks. Well, not everybody, some people get 600 bucks. But don’t worry, we’ve got to dole out some money to our friends and enemies around the world.
So let’s see what we’re doing there. We’re going to send the folks in Ukraine $453 million 453 million for Joe Biden’s buddies in Ukraine. How about Sudan, you know, a country you’ve maybe never heard of, they’re going to get $700 million. The Republic of Georgia 132 million, and Bangladesh is going to get $198 million. We mustn’t forget to give $170 million to Vietnam. And then there’s the small matter. Okay. of 33 million bucks. We got to give to some democracy programs in Venezuela. Yes, yes. Don’t worry, Maduro will be sure to use those funds appropriately to promote democracy under his dictatorship in Venezuela. Like, like we said, You can’t make this stuff up. So the three the 33 million, and the 33 million for Venezuela, is on page 14 198. And page 1347. prohibits funding for Venezuela. Because you know, Venezuela is a Rogue Nation. Right? So there you go. There you go, folks. I mean, wow, this is absolutely. This is enough to really, really bother you. are you bothered? You should be. It’s really insane. It’s really, really insane. So the US has spent like $5 trillion trillion with a T. And I think this bill is about it’s over $2 trillion. So that’s where your tax dollars your tax dollars at work, ladies and gentlemen. Yes, your tax dollars at work. So yeah, you get 600 bucks, but we got to make sure and let me see 130 5 million for Burma. What else we got here. I’m just looking over a little abstract here. 600 million. Oh, there’s 45 million in taxpayer money that will be awarded to key government officials in Central America. You know, Guatemala, El Salvador Honduras, to combat corruption in these notoriously corrupt countries, right. 10 million will be given to the Government of Pakistan for Oh, my God, this is insane. $10 million going to Pakistan for gender studies programs. Okay. So if I was a Pakistani government official, I want to create a little gender studies institution. So I could get 10 million bucks from Uncle Sam, that sounds like a pretty good deal. mean, this is absolutely on on. But I mean, it’s just beyond comprehension. It really, it really is insane, folks. So there you go. hope you feel better your tax dollars at work.
And I think tomorrow, we will do an inflation study. Yes, a really interesting inflation study that’s been running for 37 years, 37 years of inflation on none other than you’re ready for it. The 12 Days of Christmas, you know, we got to, we got to see if that partridge in a pear tree went up in price due to inflation, or those two turtledoves, or the Three French hens, or the Four calling birds, or the Five golden rains? I think we’ll do that tomorrow. And we’ll we’ll do an inflation study on the 12 Days of Christmas and and see what we have there. See if there’s any real inflation in the system, right? Let’s see if there’s any real inflation in the system. So yeah, it’s it’s just totally amazing. And we are going to start the new year, with some good stuff on goal setting. We’ve had that we had a client case study, today that I did, I interviewed one of our clients, who was gracious enough to come on the show, because we all know that you love the client case studies. And so if you’re out there, and you’re one of our investor customers, using our system using our network, then come on the show, we’d love to hear your story, we always appreciate it. So thanks very much to this one who came on and shared some of his goals and his plans, and, and all of that stuff. So we got a couple of those client case studies coming up. Gosh, what else is going on? You know, they always try and pass these crazy bills, right? around the holidays, when nobody’s paying attention. nobody’s paying attention. And you know, there’s your tax dollars at work. But remember, that’s not necessarily your tax dollars at work. It’s also the dollars you haven’t been taxed on yet, or dollars you have been taxed on that you think are yours. So you think these dollars are yours. And here’s why you think that because you are saving those dollars, you are investing those dollars, maybe they’re in the stock market. Maybe they’re in bonds, hopefully not either of those, hopefully not. But if they are, you think that money is yours.
But guess what, the two and a half trillion dollars the government just spent so they could send some money to El Salvador, Guatemala, Ukraine, Pakistan, all the rest that I just read off Burma, Myanmar, Burma, all of that money, it just less than the value of the rest of the money you’ve saved. But you you know the money you worked hard for and saved because it created inflationary pressure. And inflation is a liar and a thief. It’s a pickpocket. It’s in your savings account. It’s in your stock fund. It’s in your bond investments. It’s in your equity in real estate, by the way, but it is helping reduce the obligation of the debt you have in your mortgage debt inflation due step destruction of course, and it is increasing the nominal price of your real estate. When you leverage that real estate you have a huge multiplier effect. Always remember that. The leverage multiplier that I’ve taught you about many times over the years. So a lot Coming up on that. Okay. Are you ready? Are you ready for a rant? This is the rant we were going to play for you yesterday. But the episode got way too long when we were discussing genocide, and how they’re trying to expand the consumer market by making everybody either get a divorce, or stay single so they can double their market share, right of all the consumer product companies, and the government receives more economic stimulation. We went over that yesterday. And I hope you were fascinated by it. But But today, we’re going to play what we did not have time for yesterday. And I’m going to call this the California rant.
So here it is. Here’s the California rant. We got to talk about California for just a moment. Because this has a huge impact on real estate, doesn’t it? Doesn’t it? So Wall Street Journal article. Today? No, not today. Sorry, not today, three days ago, Wall Street Journal article by Hank Adler, a California plan to chase away the rich and keep stalking them. A proposed wealth tax would apply for a decade to anyone who spends 60 days in a state in the Socialist Republic of California in a single year. I’ve reported on this before a few times. But folks, this is coming. It is it will be real in some form. Who knows if it’ll happen like this, you know, negotiations happen. But in California, there’s almost no braking mechanism, right? It’s just going to go through because the whole state has lost its marbles. It’s off its rocker. So the article says California’s legislature is considering a wealth tax on residence part your residents, in other words, part time residents. And any person who spends more than 60 days inside the state’s borders in a single year. So for example, a lot of people live in Arizona, or they live in Nevada, say they live in Vegas, they live in Phoenix, Scottsdale. And then in the summer, they rent or own a second home in San Diego, or orange county or LA. And they go there and spend the summer there for 60 days. Well, guess what? They are screwing. These people are going to get it. And they might get it retroactively 10 years backwards. I mean, this is absolutely psychotic. This is absolutely insane what is being proposed. We’ve reported on it before, but there’s more and more detail coming out. So the article goes on to say, even those who move out of the state would continue to be subject to the tax for a decade, for 10 years. a provision that calls for calls to mind. The Eagles famous Hotel California lyric, you can check out anytime you like, but you can never leave. That’s such a great line. Welcome to the Hotel California. Such a lovely place such a lovely face. We’re living it up at the Hotel California. And how’s the rest of it go? I don’t remember the lyrics. Sorry, a while. But yes, you can check out anytime you like, but you can never leave. The California Constitution probably allows a statewide wealth tax on residents. But in an effort to create a tax capable of reaching across states borders, may run afoul of the US Constitution. I’ve said that as well. And I agree that that’s a that’s a boy, that’s it’s insane. It’s insane. But guess what in the Constitution, you know, remember, we have the Commerce Clause, and the full faith and credit provision. And that could allow this now I’m no lawyer, and I’m certainly no constitutional lawyer or constitutional scholar, and I don’t pretend to be one, even on YouTube, but just from what I know, they might have a shot at this. And you know, what, if there is any vestige of someone’s financial life and the Socialist Republic of California, they’re going to have your their claws into you for sure. For sure, for sure. For sure. And if you’re They are now and you leave in five years. They got you. Okay.
Now granted for someone who came there last summer and spent 60 days there, and that’s a, that’s an uphill climb for them. But the FTB, the Franchise Tax Board, the Nazi taxing agency. Remember the Nazis were the National Socialist Party. By the way, a lot of people confuse them and they want to say, oh, Republicans are Nazis. No, the Nazis were socialists. Don’t forget that. Okay. It’s going to be harder. But the Franchise Tax Board in California is one tough cookie. Let me tell you, that is probably the most aggressive taxing agency in the entire country. It is unbelievable how aggressive that agency is. And this is the problem, folks, like I’ve said many times over the years, you never want to live in a place where the government is broke, because the government becomes predatory on the citizens. And that’s what happens in California, whether it be parking tickets, speed traps, even drunk driving arrests. Now they can find an arrest and jail people for COVID violations. Did you leave your house at the wrong time after the curfew? Are you not wearing your mask? Right? Did you slip it down? And and leave your nose out so you can actually breathe? And just cover your mouth? Oh, you’re getting fine. Maybe we should just cut you off to jail. I think you need a reeducation. A little reeducation camp for those people. Oh, yes. Those evil people. Okay. Anyway. So going on with the article. Obviously, you can tell when I’m reading the article, and just making my own flamboyant and entertaining commentary. Yes, I am use myself. And when I cease to amuse myself, I’ll stop doing it. Alright, anyway. So yes, 60 days a year in California, and the long arm of law is going to reach out and get you even 10 years later. And extending that tax over an ensuing decade would be something new under the sun. The article says, each year, this tax net would gather up a new crop of taxpayers for the next decade. The range of people it proposes to ensnare is staggering. Every student attending college in California, anyone having a major medical procedure at a California Hospital and needing an extended in state recovery period. Talk about kicking someone when they’re down, right. They had to go to a California Hospital to have a medical procedure. Maybe they got COVID. And they had to stay 60 days, because their recovery was slow. And now the California socialist government has their clocks in you. It’s not enough that you’re sick and dying, and you finally recovered.
But now, Franchise Tax Board is going to keep their claws in you for a decade, even if you live in Arizona or Nevada, or Washington state or Oregon, or anywhere else for that matter. Wow. This is absolutely unbelievable, folks. And this is just what remember, I reported to you that this is just one of five new taxes that California is proposing. Okay, reading on I’m almost finished here in state recovery period. So we talked about the people recovering from you know, in the hospital, right, and those who spent two months in California away from New York or London winters. under California Tax Law, there is no distinction between non resident from Minnesota and a non resident from Dubai. So if you live in Dubai, or France, or Sweden, or Germany, and you come to California and you spend 60 days there, maybe maybe you’re a young kid, and you’re traveling from Europe and you’re staying in California in youth hostels, cheap youth hostels, right, and your hitch height, well, you’re probably not hitchhike hiking, but you’re you know, you rent a cheap car, or you know, you do some couch surfing, right. That’s the thing couch surfing. There’s a website for it. By the way. It’s like Airbnb for sofas. And that’s what the young folks do couch surfing, and you do some couch surfing, and you know, you don’t have a job. So you hang out in California for six weeks for 60 days. And you cruise around. You go to the north south, the middle, maybe maybe you’re a surfer. Maybe you do some surfing, you are screwed, because they’re gonna have their claws in you for 10 years. So Assembly Bill 208 2088 proposes calculating the wealth tax based on the current worldwide net worth of the person each December 31.
For part temporary residents, the tax would be proportionate. based on the number of days in California, the annual tax would be on the net worth. I mean, you can’t make this stuff up folks. The net worth and therefore would include wealth earned, inherited or obtained through gifts or estates long before and long after leaving the Socialist Republic of California. The proposed wealth tax would fall on Star high school or college athletes who grew up in California but becomes a wealthy professional in another state after graduation. It would also grab a scientist who develops a drug cure, or a drug to cure cancer years after leaving the Socialist Republic of California. a grandchild who spent a single summer surfing in Southern California would be subject to the tax. It would include anyone returning home to a foreign country after 60 days in California. Wow. I’m telling you, I’m going to predict this is going to happen. And it may not be quite that bad. It’ll probably be watered down a little bit. And it may not be this year, but this is common folks. They I know how California is. I know how that legislature is and certainly we know how screwed up their governor is Gavin nuisance, or whoever’s governor could be moonbeam, Jerry Brown like they just had or the next crazy. I mean, this is going to happen, folks. Trust me something some version of this will happen.
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