Key Takeaways
- Kamala Harris supports taxing unrealized capital gains over $100 million.
- Biden’s proposal includes a 25% minimum tax on unrealized gains.
- Opponents argue that taxing unrealized gains threatens economic growth.
Kamala Harris has voiced her support for President Joe Biden’s budget plan, which includes a controversial tax on unrealized gains for America’s wealthiest citizens.
The proposal suggests a 25% minimum tax on unrealized capital gains for individuals with over $100 million in wealth, along with a corporate tax increase from 21% to 28%.
Additionally, the plan seeks to raise the capital gains tax to 44.6%.
$8.5 trillion
Jake Johnson of commondreams.org highlighted that U.S. billionaires held around $8.5 trillion in unrealized gains in 2022, calling this an untapped source of revenue for the federal government.
Supporters argue that taxing unrealized gains is necessary to ensure the wealthiest contribute their fair share.
However, opponents, including economic think tanks like the American Institute for Economic Research (AIER), label the tax a harmful economic fallacy, claiming it undermines growth and personal liberty.
Debate
The news has stirred debate on social media, with critics describing the policy as “insane” and economically destructive.
Despite public opposition, Harris’s endorsement signals her alignment with Biden’s vision for reshaping the tax landscape, focusing on higher contributions from corporations and the ultra-wealthy.
