Dear Reader,
There’s a crisis in America.
A housing crisis.
Discover the shocking truth about how the government single-handedly created the housing crisis through a web of destructive policies
A 30-year-old capital gains rule, never adjusted for inflation, is trapping millions of seniors in their homes
Learn the Rich Dad lesson: the government is not your friend. They create the problem, then offer a “solution” that only makes them richer.
The most important lesson my Rich Da taught me: The poor and middle class work for money and pay high taxes. The rich acquire assets and use the tax code to build wealth. I’ll show you how to apply this powerful lesson to your own life and stop playing the government's game.
Young people can’t afford to buy a home.
The median age of a first-time buyer is now 40 years old. Forty.
Prices are insane. Up 60 percent since 2019.
A median house now costs more than five times the median income.
Everyone knows it. Everyone feels it. But do you know why?
It’s not complicated. It’s not a mystery. It’s not the market.
It’s the government.
They did this. On purpose. With a web of stupid rules, regulations, and taxes.
And now, they are holding the entire housing market hostage with a pair of golden handcuffs.
The Tax Trap
My poor dad believed in the American Dream. Work hard. Buy a house. Pay it off. He thought his house was his biggest asset.
My rich dad knew the truth. Your house is not an asset. It’s a liability.
And the government is your partner. A partner who can change the rules at any time.
A partner who always gets their cut.
And that’s exactly what’s happening right now.
There’s a law. A tax law. Passed in 1997. Back when Bill Clinton was president.
It says that when you sell your house, you can exclude some of the profit from taxes. $250,000 for a single person. $500,000 for a married couple.
Back in 1997, that was a lot of money. It covered most people. But the government made a little “mistake.” They forgot to adjust it for inflation.
For thirty years, that number has not changed. While house prices have gone to the moon.
So what happens now?
You have millions of seniors. Baby boomers. They bought their houses for $50,000. Now they’re worth $1 million.
They want to downsize. They want to move to a warmer climate. They want to cash out and fund their retirement.
But they can’t.
Because if they sell, they get hit with a massive tax bill.
A bill for hundreds of thousands of dollars.
The government shows up and demands its “fair share” of the equity they spent their lives building.
So they stay put. They are trapped. Prisoners in their own homes. Wearing a pair of golden handcuffs.
And because they can’t sell, there are no houses for the next generation to buy.
The supply is choked off. And prices go up. And up. And up.
See how the game works? The government creates the problem. Then they wring their hands and talk about the “housing crisis.”
They blame the market. They blame “greedy” investors.
They blame everyone but themselves.
It’s a scam. A protection racket. And you are the victim.
The Solution Is Simple (So They’ll Never Do It)
Now, for once, there’s a glimmer of hope. A bipartisan bill. The “More Homes on the Market Act.” It’s a fancy name for a simple idea.
Raise the exclusion. To $500,000 for singles. $1 million for couples.
Basically, adjust it for the inflation they created.
It’s a no-brainer. A win-win. Seniors get to sell their homes and retire in peace.
Young families get a chance to buy a home. The market unfreezes.
So, of course, it will probably never pass.
Because the government doesn’t want a solution. They want a problem.
Problems justify their existence. Problems justify more taxes, more programs, more control.
They don’t want you to be financially independent. They want you to be dependent. On them. For everything.
My rich dad taught me that the most dangerous words in the English language are “I’ll do it tomorrow.”
And the second most dangerous are “The government is here to help.”
Capital gains taxes are a cancer.
They are double taxation. You earn money. You pay tax on it. You invest what’s left.
It grows. You sell it. You pay tax on it again. It’s theft. Plain and simple.
In a perfect world, we would abolish capital gains taxes altogether. But we don’t live in a perfect world.
We live in a world run by financially illiterate politicians and bureaucrats.
So we have to be smart. We have to understand the rules of their game. And we have to use those rules to our advantage.
This housing crisis is a perfect example. The government created it. And they are the only ones who can fix it. But they won’t. Not unless we force them to.
Don’t hold your breath.
Instead, get educated. Learn about real estate. Learn about taxes. Learn how to use debt to buy assets, not liabilities.
Don’t let them trap you in golden handcuffs.
Build your own financial freedom. It’s the only way to win their rigged game.
Robert Kiyosaki
Editor, Money Power and Profit
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