A new tax proposal championed by Vice President Kamala Harris, aimed at the ultra-wealthy, is gaining traction on social media platforms 📲. However, many posts misrepresent the plan, suggesting that all homeowners could face hefty tax bills, fueling unnecessary fear. One TikTok user even claimed that people will “lose their homes” and that the IRS will “bankrupt them” 🏠💸.
What Is the Billionaire Minimum Tax? 💵
The proposal, often referred to as a **billionaire minimum tax**, would apply to individuals with a net worth exceeding $100 million 💼—less than 1% of all taxpayers. The plan focuses on **unrealized capital gains**, treating the rise in value of assets like real estate, stocks, or private businesses as taxable income each year, even if they haven’t been sold 📈. This means that gains existing only on paper would be taxed.
“It’s quite a transformational proposal,” says Mark Friedlich, vice president of government affairs at Wolters Kluwer Tax & Accounting 🏛️.
Harris’ Support for Taxing the Wealthy 💰
Harris has voiced her support for the billionaire minimum tax on the campaign trail, though she hasn’t provided specific details yet. However, the Biden-Harris administration's latest budget proposal outlines key elements of the plan 📑. Both Harris and President Joe Biden have consistently pushed for the wealthiest Americans to “pay their fair share” of taxes 🏦.
The additional revenue raised could be used for social programs, such as assistance with child care and down payments for first-time homebuyers 👨👩👧👦🏠.
Capital Gains Tax Hike for Millionaires 📊
Currently, middle- and high-income individuals pay taxes on **realized capital gains**, which apply when assets are sold for more than their purchase price 💲. Harris has called for increasing the top tax rate on millionaires' **long-term realized capital gains** from 20% to 28%, making it more expensive to cash in on big profits 📉.
This proposal is just one of several pushed by Democrats in recent years to make the rich contribute more to social spending programs 🏛️.
