Harris Could Take Everything You Have by Taxing Unrealized Gains

The Sixteenth Amendment Does Not Authorize Unapportioned Taxation of Unrealized Capital Gains. Article I of the Constitution gives Congress “[p]ower [t]o lay and collect Taxes.” U.S. Const. However, if Democrats have all the power, what do you think they will do?

Kamala Harris backs President Biden’s 44.6% capital gains tax proposal, the highest in history. The proposal also includes a 25% tax on unrealized gains for high-net-worth individuals.

In other words, she wants to tax money that has yet to be created by taxing assets or investments you keep to improve your living conditions or secure your future that you have not yet sold. The wealth does not yet exist.

The Biden budget called for new taxes on wealthy Americans, corporations, and business owners — including a controversial idea to tax unrealized capital gains as income for those with more than $100 million. An unrealized capital gain, also called a paper profit, refers to an increase in value for an asset that a person hasn’t sold yet, whether it’s a share in a business or your home or paintings. They would tax it yearly, but you wouldn’t get your money back if it depreciates.

It starts with people who make $100 million, but you know where this leads.

A Harris campaign official told MarketWatch earlier this month that investors should consider Harris’s recent budget, not her stances before her time as vice president, as a guide for her policy preferences.

The recent Biden-Harris budget includes a capital gains tax on unrealized profits.

THEY COULD TAKE EVERY DIME YOU HAVE

Currently, it only taxes people who are worth $100 million. If the past is prologue, it will eventually hit everyone. Even as it only hits investors and entrepreneurs, it will affect pensions and jobs. If you have a house, you probably have worth of $100 million.

Sean Davis of The Federalist summarizes the insanity of Capital Gains Taxes of unrealized gains.

“I don’t think people fully appreciate how communist and evil an unrealized capital gains tax is.

“Understand that government controls asset prices via its control of the money supply: If it wants asset prices to go up, all it has to do is print money.”

“[This] means all a corrupt government needs to do to destroy you with a massive tax bill on unrealized gains is to print a crap ton of money, create massive asset inflation due to the deliberate devaluation of the currency, then bill you for the asset bubble it created.

“If you bought a house for $200,000, and the government fires up the money printer to juice asset prices, resulting in your house being worth $600,000, you now have $400,000 in unrealized gains the government can tax you on.

“At a 25% tax rate, which is what Kamala Harris proposed, you now owe $100,000 in taxes in year one. After two years of that, your tax liability will be higher than what you paid for your house.

“If this sounds insane, it’s because it is insane. Communism is insane. And yet it’s exactly what’s being proposed at Commie Con 2024, otherwise known as the Democrat National Convention.”

According to Forbes, it’s much more incremental than revolutionary. The only problem is that their incremental never stops as they implement their controlling regulations and their welfare state. They will need more and more of our money. Capital Gains will be on the chopping block. Socialists and communists think your money is their money.

KILLING ENTREPRENEURSHIP

Biden’s Treasury Department said it’s proposing “a minimum tax of 25 percent on total income, generally inclusive of unrealized capital gains, for all taxpayers with wealth (that is, the difference obtained by subtracting liabilities from assets) greater than $100 million.”

It’s “among the worst ideas in the Biden administration’s proposed budget,” said Siri Terjesen, a professor and associate dean at Florida Atlantic University’s College of Business.

It would serve as a “kill switch” for entrepreneurship because it would end up “discouraging investment & draining capital,” she wrote. Terjesen’s comments came in social media posts last month and in an opinion column for the Daily Signal, a conservative website.

SOURCES:

1. P. 82 of President Biden’s budget proposal states, “The proposal would impose a 25% tax on total income, GENERALLY INCLUSIVE OF UNREALIZED CAPITAL GAINS.”
2. The WSJ confirmed Kamala Harris backed this budget proposal.
3. “The Biden Budget proposes a minimum tax of 25 percent on total income, generally inclusive of unrealized capital gains, for all taxpayers with wealth (that is, the difference obtained by subtracting liabilities from assets) greater than $100 million.”
4. Kamala Harris did, in fact, back Biden’s Budget proposal.
5. Forbes: “Biden’s latest budget proposal, which would include a 25% annual minimum tax on unrealized capital gains for individuals with incomes and assets exceeding $100 million.”
6. Gov Source
7. According to this Ernst & Young document dated March 15, 2024, the Biden Administration’s FY25 budget proposal does indeed apply a 25% tax to unrealized capital gains. See the section “Impose a minimum income tax on certain high-net-worth individuals” in the linked doc: Tax News.
8. Biden or whoever runs the government used the term ‘wealth’ in a briefing instead of ‘income’ because it includes unrealized gains from possessions and other non-taxed items.

RUNNING MATE TIM WALZ

Minnesota lags behind the rest of the nation in economic growth. The state’s average weekly wages rank among the lowest, and population growth has stalled as high-income households leave.

Walz approved more than $10 billion in tax increases when he came into office and spent wildly and rashly.

Walz’s tax-and-spending policies foreshadow the direction Ms. Harris plans to take the U.S. if she is elected in November.

He turned a $17.6 billion state budget surplus into debt and deficit. Walz has slapped Minnesotans with a series of tax increases.

WALZ HAS IMPOSED:

• A 0.7% payroll tax on employers, half of which may be passed on to employees, making Minnesota among a handful of states with a payroll tax.
• A 50-cent tax on more than $100 in retail deliveries except food. Colorado is the only other state with a retail delivery tax.
• An increased motor vehicle sales tax from 6.5% to 6.875%, among the highest in the country.
• A 1% sales tax in seven counties in the Minneapolis metropolitan area to more than 8% and 9% in Minneapolis. The average sales tax in the U.S. is roughly 6%.
• A 1% surtax on net investments such as capital gains, dividends, rental income, royalty and other investment income that exceeds $1 million a year.
• Increased corporate taxes by targeting a portion of the revenue Minnesota companies generate abroad.
• Limited tax deductions on families with annual incomes of more than $220,000.

Mr. Walz campaigned for governor in 2018 on the promise of adding a 10-cent-per-gallon gasoline tax and proposed increasing the income tax rate for millionaires to 10.85% from 9.85%, already one of the highest in the country. Neither measure cleared the Legislature.

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