Harris plans to tax unrealized stock gains — but only for people worth $100 million
Vice President Kamala Harris' endorsement of a Biden administration plan that includes a tax on stock holdings that have grown in value has emerged in recent weeks as a talking point among conservative pundits and Trump supporters who argue it amounts to socialism or even communism.
Vice President Kamala Harris' endorsement of a Biden administration plan that includes a tax on stock holdings that have grown in value has emerged in recent weeks as a talking point among conservative pundits and Trump supporters who argue it amounts to socialism or even communism.
Under the current system, the federal government only taxes profits from stock investments — commonly known as capital gains — once a stock is sold. The plan backed by Harris would impose a levy on stock holdings as their value increases, whether they’re cashed in or not.
There is, however, a catch. The proposal backed by Harris would only apply to a narrow — and very wealthy — slice of the population: people whose net worth is at least $100 million. That's about 10,660 people in the U.S., according to one estimate.
Currently, no such tax exists — something that many advocates across the political spectrum, though mostly progressive-leaning ones, believe should be rectified. By most estimates, the top 1% has approximately 40% of their wealth tied up in unrealized capital gains.
The lack of taxes on capital gains has been considered by some economists and tax experts as a loophole for the wealthy.
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