Putting aside the fact that this high-risk idea only amounts to a pittance, $430 billion per year, the introduction of taxing unrealized gains could be one of the worst slippery slopes we ever dare to roll our country’s economy down.
On Tuesday, it was announced that Presidential candidate Kamala Harris would be supporting President Joe Biden’s tax proposals for 2025, which include a 44.6% capital gains rate and a 25% tax on unrealized gains.
Unrealized gains taxation could be the most destructive idea for our country since prohibition, I joked at the time.
Taxing unrealized gains is an exponentially worse type of taxation that introduces not just a higher tax rate and a 3rd type of income tax, but a completely new system for taxation – one that taxes people's assets as they appreciate, not just when they realize the gains of said appreciation.
As part of its budget proposal for the 2025 fiscal year, the Biden administration was trying to raise an addition $4.3 trillion over 10 years in the worst way possible: imposing a minimum tax equal to 25 percent of a taxpayer’s taxable income and unrealized capital gains less the sum of their regular tax, for taxpayers with wealth over $100 million.
Once taxing unrealized gains makes its way into the zeitgeist, it sticks around for good.
In other words, an unrealized gains tax will push them past their limit and result in catastrophic consequences for the country's tax revenue as a whole.
https://quoththeraven.substack.com/p/taxing-unrealized-gains-would-obliterate
No comments:
Post a Comment