Kamala Harris’ proposal for a 25% tax on unrealized gains, which are profits on investments that have increased in value but haven’t yet been sold, has sparked significant debate. Proponents argue it could help address income inequality and ensure that the wealthiest individuals pay taxes on their assets. Critics, however, warn that it might create economic instability by discouraging investment, complicating asset valuation, and leading to potential liquidity issues. The impact on markets and individual investors would depend on the specifics of implementation and how it’s integrated with the broader tax system.
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