The Saad Truth with Dr. Saad - February 15, 2026


Unrealized Capital Gains Tax - Orwellian and Kafkaesque (The Saad Truth with Dr. Saad_967)


Episode Stats


Length

22 minutes

Words per minute

142.6239

Word count

3,203

Sentence count

199

Harmful content

Misogyny

3

sentences flagged

Toxicity

11

sentences flagged

Hate speech

4

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

The Dutch Parliament passed a 36% tax on unrealized capital gains. This is Orwellian and Kafkaesque. The Dutch have a new progressive tax called the "Unrealized Future Earnings of Spermatozoa Tax." This serves as a down payment for future entrepreneurial gains, if you end up never making any future money as an entrepreneur.

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.160 Hi everybody, this is Gadsad. Yesterday I posted several posts on social media where I was responding or reacting to the Dutch Parliament passing an unrealized capital gains tax of 36%.
00:00:22.000 And this, by the way, is an idea that's been floated in many places in the West. But I first wanted to begin by reading those posts for you and then I will conduct a more sober analysis, both a financial one and a psychological one and one rooted in human nature.
00:00:44.900 For those of you who don't know what unrealized capital gains means, if I were to invest $1,000 in a mutual fund and then a year later it's gone up by 10%, so it's now at $1,100, so I've made $100.
00:01:02.620 But I keep that fund for a long time because I wanted to have the compounded effect so that in 30 years I could take it out and the power is that the compounded mechanism causes that original amount to grow much more and then hopefully I will have money for a rainy day.
00:01:22.280 Okay, I only get taxed on it at the point where I actually sell that investment. When I sell that investment, whatever I made, I would get taxed whatever percentage.
00:01:33.380 The Dutch government has now said, no, if at the end of that first year you've made $100 in the sense that your portfolio value of that asset has gone up by $100, we will tax you 36% on that amount even though you didn't sell it.
00:01:52.940 It's unrealized. So even though there is no mechanism by which your wallet has actually increased in a true exchange manner, just the fact that the value has gone up will tax you on that.
00:02:06.360 So this is in an Orwellian sense akin to having a neuronal mechanism by which, and I think there was a movie made of that with Tom Cruise many years ago, where we gauge whether you're likely to commit a crime in the future and then we will punish you based on a crime that didn't happen, but based on your neuronal activation patterns that suggest that you would have committed that crime.
00:02:33.320 So it's a prospective punishment for something that hasn't happened yet.
00:02:38.340 So it is impossible to imagine a more Orwellian and Kafkaesque situation than this.
00:02:45.580 But now I wanted to read you the tweets and then I will offer a bit more of an analysis.
00:02:50.380 You ready? So the first thing I wrote here is,
00:02:53.300 It is truly extraordinary to see the new Dutch tax on unrealized capital gains.
00:02:58.880 It is as though the responsible politicians exist in a parallel universe, fully decoupled from an understanding of human nature, of economics and of reality, because that's literally what it is.
00:03:11.580 It violates every possible mechanism in any realm that you could think of, other than the fact that the government's sole objective is to take more money from you in any possible way that they can.
00:03:26.440 So to the extent that that's the objective, then they certainly are being very good at doing so.
00:03:32.740 And then I'm going to read you two other tweets that I posted.
00:03:38.100 So I said,
00:03:38.840 The Dutch government is coming up with a really cool and progressive new tax.
00:03:43.500 It's called the Potential Entrepreneur Tax.
00:03:47.380 All citizens will be taxed $100,000 when they are born.
00:03:51.700 This serves as a down payment for future entrepreneurial gains.
00:03:55.520 If you end up never making any future money as an entrepreneur, they will levy a $100,000 apathy tax. 0.99
00:04:03.360 Shut the fuck up and pay. 1.00
00:04:05.640 And then I wrote another satirical post, even more satirical. 1.00
00:04:12.420 But again, the satire stems from taking the Orwellian reality and extrapolating to a boundary condition.
00:04:22.020 Hence, this is why my satire proves to be prophetic.
00:04:25.540 So here's the other one.
00:04:26.980 The Dutch have come up with a new progressive tax.
00:04:30.120 It's called the Unrealized Future Earnings of Spermatozoa Tax.
00:04:35.400 Given that a man's ejaculate contains 250 million spermatozoa, each of which could become a future citizen,
00:04:44.080 the government will preemptively tax you 1% of the potential future earnings of 2.5 million of your potential descendants.
00:04:54.280 Right?
00:04:54.840 2.5 million is 1% of $250 million. 1.00
00:04:57.600 If you end up never producing a child, shut the fuck up and pay. 1.00
00:05:03.580 Right? 0.99
00:05:04.020 So again, this is following the exact mechanism of it doesn't matter if you haven't made any money.
00:05:10.380 We will tax you just on the fact that your portfolio went up.
00:05:13.440 So now let's discuss that in a bit more details.
00:05:16.720 Okay.
00:05:16.940 So, there is a fundamental mechanism, which I discussed, by the way, in my forthcoming book, Suicidal Empathy.
00:05:26.560 I urge you, please, if you support what I do, if you want to contribute to helping fight against the lunacy that we're seeing in the West,
00:05:36.900 Suicidal Empathy, Dying to be Kind, is the book that puts it all together for you.
00:05:42.760 It is the ultimate mind vaccine.
00:05:44.660 All you have to do now is go and pre-order it.
00:05:47.600 If you pre-order it, it counts towards, when the book is released, it counts towards sales on that first day.
00:05:54.320 So, the book enters immediately the bestsellers list.
00:05:57.880 So, if you're planning on buying the book, just press pre-order today and it would really help.
00:06:02.780 Okay.
00:06:03.420 So, now let's discuss a really important concept that I cover in Suicidal Empathy.
00:06:08.480 There is an individual difference that varies across people in terms of how they score on immediate versus postponed gratification, right?
00:06:17.740 Immediate gratification is I want it now.
00:06:20.600 Postponed gratification is I'm willing to wait and, you know, hopefully get a reward in the future.
00:06:26.100 And that, how people score on that measure has a profound effect on many, many important life metrics, right?
00:06:34.880 So, for example, if I say I'm willing to forego making an immediate income now so I can study for a very long time.
00:06:42.720 All those years that I'm studying, I'm not making as much income, but the hope is that by putting off the income until a future date when I become a neurosurgeon or a professor or whatever it is that I'm holding out the income for, I will make up for it then, right?
00:06:59.460 And so, as I said, and by the way, there's the classic experiments with the marshmallows, right?
00:07:04.460 Do kids hold off eating that immediate marshmallow now so that they can have more later or not?
00:07:10.580 So, there's a whole huge literature that has looked at the effects of how people score on this trait on future life consequences.
00:07:20.840 And the general idea is being someone who postpones gratification leads to good outcomes.
00:07:28.740 Certainly when it comes to your financial health, right?
00:07:31.960 Saving for a rainy day is a good idea.
00:07:34.760 We want that.
00:07:35.800 This is why the governments create mechanisms so that you can yourself save.
00:07:41.920 Oh, if you put it in a retirement, a registered retirement saving plan, that's what we call it in Canada, RRSPs or in a tax, whatever it's called, shelter account, then any money that you put away is compounded the interest.
00:07:56.740 And that amount is non-taxable until you take it out because people understand that the compounding mechanism is a very powerful one.
00:08:07.300 And therefore, if you get people to save, then later they would be less of a burden on the social system because they would have saved money for a rainy day individually, right?
00:08:18.740 So, for example, at my university, I can contribute some amount to my retirement and then the university matches that amount.
00:08:26.760 Again, it all stems from an understanding that we've known for a very long time that you need to get people to, you know, to promote savings behavior, hence delayed gratification, and that they're being rewarded by the mechanism of compounded interest.
00:08:44.880 I mean, the compounded mechanism that arises, right?
00:08:48.800 So, let's go on.
00:08:51.060 So, immediate and delayed gratification is a fundamental feature that promotes savings, right?
00:08:58.140 Now, let's talk about Warren Buffett.
00:09:00.740 Warren Buffett, who is arguably the greatest investor ever, who's a multi-billionaire, who is still alive, when he's been asked, I'm paraphrasing, what's your secret?
00:09:13.500 The answer is, start investing early, put it away, and never look back.
00:09:20.200 Wait 50, 60 years.
00:09:21.880 Why is that?
00:09:22.820 Because the general trajectory of the market is that if you don't play around, it's going to invariably go up.
00:09:31.260 Once you add the compounding mechanism, then what started off with one cent very quickly becomes a coffer of money that's unimaginable.
00:09:42.740 So, have the discipline to hold on to that money, save it, and you will be rewarded at the end.
00:09:50.280 Okay?
00:09:51.120 So far, so good?
00:09:53.320 All right.
00:09:54.360 So, now, we come to the governments.
00:09:59.600 I'm going to link it to suicidal empathy, and I hope you see how.
00:10:02.680 So, when Western governments are so altruistic in their largesse with other people's money, meaning the taxpayer base, where the government of Canada is trying to set up ways for people in Ghana to not defecate on the beaches.
00:10:24.620 That's literally true, right?
00:10:26.480 We're so kind in Canada that it is our responsibility to make sure that the hygiene protocol in Ghana is one that we fund with our taxpayer money.
00:10:38.900 Or I've got many, many examples in suicidal empathy where I discuss some of the taxpayer-funded projects, either in Canada or the U.S.
00:10:51.100 Take, for example, Doge, the stuff that they've come up, uncovered, you know, transgender cartoons in Peru and gender equity with trans in Waziristan, whatever it is.
00:11:01.700 Well, that's easy to do if I'm a politician who suffers from parasitic suicidal empathy.
00:11:08.680 I want to always appear, when I look at myself in the mirror, that I am the ultimate model of kindness and empathy.
00:11:16.300 But I'm not going to do it with my own money.
00:11:18.640 I'm going to do it with the money of others, with the peasants. 0.96
00:11:21.400 And therefore, if there are no consequences for me to further steal from the taxpayers, and there are no consequences, the worst that could happen to me is at the end of my term, I don't get renewed, right? 0.89
00:11:34.840 There is no mechanism that says that if at the end of the year, the budget of the government is not balanced, we will take you all to the back of the alley and execute you.
00:11:44.420 That would solve the problem of overspending by the government, right?
00:11:48.880 At the individual level, I can't, without declaring bankruptcy, not keep my financial books properly, right?
00:11:57.740 So if I wish to be able to have good credit, I have to have the financial discipline to balance my books in a way that makes sense.
00:12:08.300 If I am a company, I need to balance my books.
00:12:11.900 Otherwise, bankruptcy will ensue.
00:12:14.880 There is one entity that is free from those constraints.
00:12:19.720 It's called the government.
00:12:21.240 Now, let's put this in perspective.
00:12:23.200 In 1917, the Canadian government, for the first time ever, began a very temporary, just during the World War I, a temporary measure to levy personal income tax from a few people, very, very small percentage.
00:12:41.300 And we're going to get rid of it very, very soon, right?
00:12:43.660 And Milton Friedman explained to us that there is nothing as permanent as a temporary government program.
00:12:51.140 Yes?
00:12:51.700 All this is covered in suicidal empathy.
00:12:54.000 Go and pre-order the book right now.
00:12:56.160 Do it.
00:12:57.780 So, the Dutch government, the British government, the Canadian government, increasingly the U.S. government, all of the West.
00:13:06.660 If I am bathing in suicidal empathy, that it is my job as a politician to always make sure that I make the world a better world according to my degenerate utopian perspective, then just raise the taxes on people.
00:13:23.880 But at some point, the people are so enslaved that there is no way by which you could raise it more.
00:13:29.860 What started in 1917 as a very, very small tax for a very, very short period of time from a very, very few people, 110, 20 years later, amounts to 58% of our income.
00:13:43.560 The highest rate at the federal level, 33%.
00:13:48.460 Highest rate at the provincial level, 25%.
00:13:51.420 It's a progressive income tax.
00:13:53.740 Then you add the sales tax, which is both provincial and federal.
00:13:58.520 That's another 15%.
00:13:59.840 Then school tax.
00:14:01.040 Then property tax.
00:14:02.340 Then carbon tax.
00:14:03.560 So, at the end of the year, for every dollar you make, you're left roughly with 30 cents.
00:14:08.220 Yes, just think about it again.
00:14:10.660 A full slave, a fully enslaved person, 100% of their labor does not belong to them. 0.95
00:14:18.360 They reap nothing.
00:14:20.360 Canadians, certainly in Quebec, it's 70% of a slave. 0.93
00:14:26.700 That's done in the service of what?
00:14:29.340 Of suicidal empathy.
00:14:30.800 We are a kind people.
00:14:31.900 We don't mine the rich natural resources of Canada because we don't want to rape Mother Earth because we're kind people.
00:14:41.480 There have been estimates conducted that said that if we were to mine and extract the natural resources that are God-given to Canada,
00:14:51.280 you wouldn't need to levy a single cent from a Canadian.
00:14:58.180 Imagine this.
00:14:59.520 That's not what Saudi Arabia does.
00:15:00.960 Saudi Arabia says, hey, God gave us oil.
00:15:04.540 Let's use it, right?
00:15:06.120 Not in Canada.
00:15:07.040 We're kind.
00:15:07.840 We don't rape Mother Earth. 1.00
00:15:09.240 But then we take the money from taxpayers and then we provide free health care to millions of immigrants.
00:15:17.220 Some legal, some illegal.
00:15:18.480 It doesn't matter.
00:15:19.300 We're kind.
00:15:20.460 So, once you run out of possible money, what do you do?
00:15:24.060 Then you say, I don't care if you've made the money or not.
00:15:27.320 I'm going to tax you on your unrealized earnings.
00:15:30.960 You didn't make that money, but you will be taxed on it.
00:15:35.560 Stop and think about the Orwellian level.
00:15:39.380 And I don't have the quote in front of me here, but there is a quote in Suicidal Empathy that I use that basically says,
00:15:44.680 the governments will rape you and abuse you to the maximum to which you will tolerate them to do that. 0.95
00:15:53.440 So, as we all fill up our nice tax forms at the due date, the government says, great, everybody's playing along, rape them more. 0.58
00:16:05.680 Now, when the politicians end up spending hundreds of thousands of dollars on a catering service on their private planes when they're going to the climate conference, it doesn't matter.
00:16:16.720 The taxpayer will fit that bill.
00:16:20.620 You follow?
00:16:21.380 So, what allows the Dutch government to go after unrealized capital gains, which itself is an Orwellian word that doesn't make any sense,
00:16:32.900 it's because it's tolerated.
00:16:35.480 It's accepted.
00:16:36.280 If you decide you no longer want to accept it, it will go away.
00:16:41.160 Now, I did a calculation.
00:16:42.680 I hope I did it right.
00:16:44.940 I was trying to remember my MBA finance and so on.
00:16:49.520 Oh, by the way, before I get to the actual calculation of this unrealized capital gains,
00:16:55.600 the British government, but not only the British government, several different Western countries have said,
00:17:00.340 we should be levying a 100% inheritance tax, right?
00:17:04.800 And, by the way, I've got, this is all covered in suicidal empathy.
00:17:08.780 Just think about what that means.
00:17:10.380 Suppose that you've already paid 50% plus of your income to the government.
00:17:15.920 So, whatever is left is now non-taxable.
00:17:19.120 Now, by the way, if you go and spend money from what you are allowed to keep,
00:17:23.280 then you will pay sales tax on that, right?
00:17:26.060 But now, whatever is left, you want to pass it on to your children.
00:17:31.660 You want to have intergenerational wealth.
00:17:33.840 We are called an evolutionary species, right?
00:17:38.060 We do invest in our kin.
00:17:41.240 There's a million studies, not just with humans, with other species,
00:17:44.860 that says the extent to which we are willing to jump in front of a bus to save our kin.
00:17:51.340 So, it's literally baked into our DNA.
00:17:55.200 So, therefore, if I work very hard, I leave a financial legacy to my children.
00:17:59.940 Now, they're saying no.
00:18:02.760 So, you've already paid all your taxes.
00:18:04.900 This is, quote, non-taxable. 1.00
00:18:07.820 Fuck you. 1.00
00:18:09.160 Whatever you thought you wanted to pass on to your children is 100. 1.00
00:18:13.200 You do pass it on.
00:18:14.400 But you pass it on at 100% to the government, who will know what to do with your money.
00:18:23.680 Are you listening?
00:18:25.220 All right.
00:18:25.880 Let me now do the calculation.
00:18:27.580 So, I took a random example of $10,000.
00:18:33.300 Suppose I had $10,000, which I want to invest for the next five years at a return of 10% each year.
00:18:43.160 And so, I did the whole calculation with compounded interest and so on.
00:18:46.520 At the end of five years, I'm left with $16,105.10.
00:18:53.400 What started at $10,000 at 10% compounded over every year at 10% if I've done my calculation right.
00:19:01.540 So, I've made $6,105.10.
00:19:05.860 If at that point I were to sell that investment, I would be taxed in the traditional model on the $6,105 that I made over the $10,000, the original principal amount.
00:19:20.140 But now, they're saying no.
00:19:23.500 When in year one, the $10,000 went up by 10% so that the $10,000 became $11,000.
00:19:32.700 So, that $1,000 is taxed at 36%.
00:19:36.820 So, you're left with $10,600, you know, whatever.
00:19:42.740 What is the calculation?
00:19:44.100 $10,640 and so on.
00:19:46.080 So, meaning that we take that money even when you haven't sold the amount.
00:19:51.160 And so, I did the whole calculation and it comes out to what I would have made which is $6,105 becomes $3,636 which is actually a lot worse because I'm losing the compounding effect of the yearly amount that would have remained as with the principal.
00:20:14.600 So, I'm getting killed.
00:20:17.040 So, already it's a lot more than a 36% tax.
00:20:21.100 But let's add an additional dimension.
00:20:23.880 At the sixth year, there is a crash.
00:20:27.880 And what started off as $10,000 which has now grown if it were in the usual model where you don't take unrealized capital gains.
00:20:37.300 What now I have $16,105.
00:20:40.960 There is a massive crash that reduces the amount of my origin.
00:20:46.420 It goes down to $8,000.
00:20:48.860 Are you with me?
00:20:49.900 So, in year six, I now, I started off at $10,000.
00:20:54.380 It grew to $16,000 something dollars.
00:20:56.840 Now, it's at $8,000.
00:20:58.580 So, I've lost $2,000 net.
00:21:00.880 But my roof is leaking.
00:21:04.600 I need money so that I need to now sell that amount at a loss.
00:21:12.120 So, the net exchange, as I started at $10,000, it went up to $16,000.
00:21:18.240 Then it dropped to $8,000 and now I'm forced to sell it.
00:21:21.440 Therefore, the net result is I've lost $2,000.
00:21:25.820 In the usual reality, there'd be no taxes to pay because when I sold it, I didn't make any capital gains.
00:21:35.180 In this model, remember, every year there was unrealized capital gains.
00:21:40.960 I was paying a 36% fee.
00:21:43.560 So, I ended up paying, and I calculated the amount, several thousands of dollars of taxes on the unrealized capital gain, even when I sold it at a loss.
00:21:58.220 So, I paid taxes on money, not only that I didn't make, I lost money.
00:22:05.220 That's what happens when a government suffers from parasitic suicidal empathy, where there is no natural law that links causes with effects, where the behavior of the government has no consequences.
00:22:25.940 Have a good day, everybody.