Presidential candidate Kamala Harris's push for an unrealized gains tax is good for you and me.
In her interview with CNN, Kamala and her camp confirmed that unrealized capital gains taxes will only affect the rich! Pinky promise.
Just like the income tax was designed only to affect the rich, and the government definitely kept that deal, that's why none of us pay any income tax!
Unrealized gains—profits that live only on paper—are the target of Kamala Harris's bold tax proposal aimed at households worth over $100 million. This plan could reshape the investment landscape - and many say for the worse.
Here's what you should know if you're an investor.
The Controversial Tax on Unrealized Gains
One thing to note is that this tax bill is more top-heavy than any Bernie Sanders or Elizabeth Warren proposal, with a 25% tax on investors worth $100 million or more. Detractors like presidential candidate Donald Trump say this is a slippery slope to full-blown communism.
"The tax on unrealized gains 'will soon be applied to small-business owners, and you will be forced to sell your restaurant immediately,'" Trump warned, calling the idea "beyond socialism."
However, advocates argue that this move is about leveling the playing field, ensuring that the mega-rich shoulder tax burdens more in line with what everyday earners face.
It calls for fairness in a tax landscape often skewed to favor those at the top of the financial food chain.
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Why It Won't Pass, Even If Kamala Wins
Despite Harris's campaign for tax reform, Congress will likely not pass her unrealized gains tax bill. Even Biden, with the wind of Democratic majorities at his back in 2021 and 2022, found himself unable to pass tax reform plans similar to Harris's.
Economists are raising eyebrows at whether the plan to tax unrealized gains would even work. Economists like Peter Schiff argue it might tangle an already complex tax system without denting the national deficit. This concept, fraught with potential market hiccups, has become a hot potato among financial experts and policymakers.
For instance, a similar plan in Norway failed recently, causing dozens of millionaires to flee the country.
Wealth taxes are a hot topic as economic inequality has been on Americans' minds for several years—potentially making tax reform a central topic at the September 10 debates between Trump and Kamala.
Meanwhile, Kamala Harris spearheads this charge, taking on the intricate task of equitable taxation without stalling economic momentum.
Yet it's hard to see if her plan has merit or will be passed if Kamala wins the presidency in November.
