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Kamala Harris endorses Biden’s proposal to tax unrealized gains

GrafaGrafa2024/08/22 07:45
By:Liezl Gambe

Kamala Harris has shown support for President Joe Biden’s 2025 budget proposal, which includes significant tax reforms.

The proposed plan aims to raise the capital gains tax rate to 44.6% and introduce a 25% minimum tax on unrealized gains for Americans with over $100 million in wealth.

Additionally, the plan seeks to increase the corporate tax rate from 21% to 28%.

Reports from Semafor, the Committee for a Responsible Federal Budget, and various news sources confirm that Harris’s campaign supports these measures.

Harris’s endorsement aligns with her broader policy goals, which include addressing price gouging and offering $25,000 incentives for first-time homebuyers.

The tax on unrealized gains, a central component of the proposal, has sparked considerable debate.

Jake Johnson of commondreams.org highlights that taxing unrealized gains could generate substantial revenue, noting a 2022 study estimating that U.S. billionaires and centi-millionaires held around $8.5 trillion in unrealized capital gains.

The proposal has drawn criticism on social media, with some users calling it an “insane policy” and arguing that unrealized gains are not actual income.

A 2021 analysis by the American Institute for Economic Research (AIER) argues against the policy, labeling it an economic fallacy that could undermine economic growth and personal liberty.

AIER’s Vance Ginn contends that taxation should be based on actual income earned, not on potential gains that may never materialize.

As Harris aligns herself with Biden’s budget, she deepens the ideological divide in American politics, reflecting a broader trend of increasing polarization.

Her support for taxing unrealized gains and raising corporate taxes signals a significant shift in economic policy and underscores the growing divisions between political ideologies in the US.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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