The specter of taxing unrealized capital gains looms large, evoking incredulity and alarm from critics who decry its potential economic havoc. With proposals for compounding taxes annually, the notion of siphoning 25% of potential growth before it even materializes strikes fear into the heart of economic stability. Amidst assurances that such measures target the wealthy, skepticism abounds over the practicality and consequences of implementing such sweeping taxation policies. As debate rages on, the ramifications of this galaxy-brained idea reverberate across financial circles, igniting fears of an economic reckoning.
🇺🇸 President Biden proposes a 44.6% capital gains tax, the highest in history.
The proposal also includes a 25% tax on unrealized gains for high-net-worth individuals. pic.twitter.com/JqcNB2SoZ7
— Win Smart, CFA (@WinfieldSmart) April 24, 2024
It’s difficult to describe how insane a 25% tax on unrealized capital gains is.
Not a one-time 25% hit. It’s compounding, annually taking 25% of every dollar of potential increase before it can grow.
Not an exaggeration to say it could single-handedly crush the economy. t.co/0rkrXuA1AW
— Austen Allred (@Austen) April 24, 2024